Business plan is a written summary for a startup or an existing business venture’s growth plans, manufacturing / servicing capabilities, marketing opportunities and strategy and managers' skills and abilities. There is no substitution of a well-prepared business plan, and there are no shortcuts for creating it. A Business Plan bridges the gap from where we are and where we want to go. It indicates the direction that where the company is going in, what its objectives are, where it wants to be, and how it’s going to get there.
Formulating a business plan can be considered to be a multi-stage process, the result of which is a multi-faceted document generally built with the twin goals of proving the logic of financing (equity or debt) the business.
Entrepreneurs normally are described as risk takers who take chances based on a gut feeling. However, it needs careful planning and preparation when you are investing money or asking another to invest money. A business plan organizes all the essential elements needed to establish a business and continue a successful business in a simple format. It is also the tool you will present to lenders to convince them to take a risk on your business and offer you with financing. Thus, it must be extremely thorough and thought provoking.
Remember, aside from the general business plan goals, every business plan is unique. Your plan should involve all the relevant information, but be customized for your business. Eventually, we should focus on the content and not the number of pages.
Once complete, the business plan should determine the expectations you have for your new or existing business. If you plan to utilize the plan to procure finance, the completed plan should “tell the story” of your business to a potential lender. The plan should serve as a unique document in which all business issues are taken into consideration without requiring additional verbal explanation. Review your plan regularly and make appropriate modifications when your plans and strategies change.
Business plans are considered as decision-making tools. No fixed content and format is required to be followed when formulating a business plan. It is a creative document reflecting the business objectives, their relevance to market and industry and the organizational plan is to attain these goals.
A well structured Business Plan is formulated to facilitate confidence from the proposed venture capitalists / Financial Institutions to plough in money into the venture which shall ideally outcome a good return over a period of time to the owner of business.
STRUCTURE OF A DIFFICULT BUSINESS PLAN FOR A STARTUP OR AN EXISTING BUSINESS SETUP IS AS UNDER:The business plan describes an entrepreneur’s idea or a company’s past and current operations and then demonstrates how the request for an investment or loan will enhance the company goals and reward the investor. However, the most essential function of the business plan is to communicate your goals and guide your company.
- Table of Contents
- Executive Summary
- Business Description
- Industry Background
- Competitor Analysis
- Manufacturing & Marketing Plan
- Management Summary
- Financial Plan
- Key Business Growth Drivers
- Funding required & its proposed utilization