19/07/2014
Biz Series 1- Let's start with the most basic and crucial process the Business Plan.
Plan is a must as it helps you know your business and help grow your business.
Business plan is not only written to attract investors, but can also be written to define process, clear understanding of the business strategies, and focus on key areas and growth. Companies which have a business plan have grown 30% more compared with the ones who consider it as an extra burden.
A well written business plan gives clarity about your process, strategies and how you are planning to run your business right from funding, promotions, identifying your target audience and so on. If your business plan is feasible with relevant figures and realistic forecast, it will definitely help you attract potential investors.
Business plan can be used as a powerful tool by both the start-ups and existing businesses.
For a start-up the business plan would include budget, funding, recruitment, training, sales projection and expenses.
An existing business would focus on a plan that will help identify critical drivers that need to be managed to steer growth. But in both the cases business plan should not be just a document. It should be used as a dynamic tool to identify potential and track growth.
Business plan structure can generally include following factors-
1. Executive Summary
Remember your first impression is the lasting one. Executive summary must be a quick overview about what is it that you want from the plan. It must include areas about your business, what product/ service/ solution your business provides, target market, key financial highlights and management team details with their roles.
2. Product and Services
This must include in detail about product description, how your product can be a solution, competitive landscape and business advantage
3. Marketing and Sales Plan
This includes how you will position your company, how you will price your products, how do you plan to promote your products and the processes for sales and after sales.
4. Competitive Analysis
The purpose of the competitive analysis is to determine the strengths and weaknesses of the competitors within your market, strategies that will provide you with a distinct advantage.
5. Financial Plan
Financial plan must include your sales forecast, profit and loss statement, cash flow statement and balance sheet.
Once the business plan is finalized the most crucial part is to set the milestones and metrics as no plan can be useful without implementation and performance review & measurement at regular intervals. For effective ex*****on of the business plan you need to make a monthly plan which can be discussed with the team and responsibilities can be handed over for its achievement. But do remember to update your business plan as per the market environment.
A business plan prepared with attention to detail, well executed and timely updated is the key to your business growth.
Shraddha Patil
The Success Route Consultancy Services