Writing a business plan is possibly the hardest part of the business process. In creating a business plan you are crafting something out of the scratch – business idea. Developing an understanding of a business, its market trends, growth opportunities and financials are time consuming and no doubt is a frustrating process. In many ways the research is the easiest part to develop. Once you have the clear idea of all these elements, the method of writing a business plan should follow easily, which helps you to answer the question on how to write a business plan.
In this article, we will describe the four easy steps, which you need in order to seek funding from potential investors and lenders. These steps help you to write a plan, which can save your money and problems.
THE MISSION: This is one of the main elements of the business plan that explains the purpose of starting a business. This section contains all aspects that are necessary to take the business on to the heights. Clearly mention the advantages of your business that will help you to bring clients or customers. Features are good to have, but benefits fill a need. Make sure that the benefits will benefit customers from survival needs to self-actualization, as Abraham Maslow has mentioned in his hierarchy of needs.
Also include your values, what is important to you, e.g. your employees, your clients or customers.
VISION: This is the single or two line statements that contain the strategic initiative that will keep you focused.
TARGET MARKET: The most critical section of a plan is the target market section. This section requires in-depth and thorough research. In this section you have to decide whom your products and services are directly meant for and who is the best audience for your product or service.
Once you decide about your audience, focus on the marketing campaign that you think can attract large number of audience.
FINANCIALS: Relax; it isn’t that daunting. This is the section that requires enough care, as this attracts the investors and lenders most. Decide the amount of capital you need to start a business. This section requires careful projection. Estimate how much will you make in the first year of your sales. Be realistic! Otherwise potential investors and lenders will not take your plan seriously.
Above are the four easy steps that help you to write a business plan. If you follow these steps the success will go far.