17 June, 2019
Did you know that a good business plan will help you secure a loan, grow your business, and secure an investment capital? What most entrepreneurs do not understand is that a business plan will double your chances of success in any industry you are in.
Because of the digital era, most business people have convinced themselves that a business plan is a document that is no longer necessary. This is not true.
However, writing one is not as easy as understanding your mission and vision. There are a lot of things to think about when writing one. This article will tell you why a simple business plan is critical for your business and give you some tips on how to write a good one.
Why Do You Need a Simple Business Plan?
The traditional business plans are a big beast that has stuck for a long time. They can consume a lot of time and money, but they are quite critical. A business plan will help you stay organised.
It will ensure that you have some type of viable commercial potential. It will help you ensure that you are using your money correctly. It will also help you raise money and apply for loans from financial institutions.
It also allows you to see the whole business and helps you connect the dots of the different teams within the organisation to see the entire picture. Therefore, you can align your business strategies to see how they fit the target market. It will also help you understand when you are covering the long-term costs and the working capital.
It will help you set the priorities that will help you keep track of the right things to do. This will help you know how to allocate your efforts, resources, and time.
Watching your profits is not always enough. With a business plan, it will help you connect the dots on your cash flow. When physical products, sales on accounts, debt repayment, and asset purchases are involved, the planning and management of cash is a crucial aspect.
You will suffer when you have slow-paying clients, and too much inventory will constipate your business. The business plan will help you see the problem and adjust to it.
Choose a Format That Works for You
There is no wrong or right way to write a business plan. Therefore, it is critical that you meet the needs of your company. In most cases, business plans are of two categories: lean start-up and the traditional format.
The traditional format is the most commonly used. It is also easier and allows you to follow the standard structure. It encourages you to go into details and to add new things as you go on.
The lean start-up business plans are not as commonly used. Their main aim is to summarise the main points of the business plan.
It can take less than an hour to write one. They are never longer than just one page.
Research Is Essential
The first step to writing a great business plan is to make sure you analyse and research the market, product, and objective expertise. You need to spend twice as much time on the research, thinking, and evaluation than you do when writing.
You need to have in-depth knowledge of your product, competition, and company. This will also help you ultimately understand the market. This means that you need to understand your business entirely before you start writing your business plan.
Read everything you can about the industry and what to expect from it. Also, do a little market research and talk to the potential target demographic on what they expect.
Why Are You Writing the Plan?
Whether you’re writing a traditional or a lean business plan will depend on why you are writing the plan. The business plan, as mentioned earlier, can serve several different purposes. If you need a road map that will offer you directions and help you with future planning.
It will also help you avoid bumps along the way. Also, if you are hoping to get funding from third parties, you need to write the traditional business plan.
That will help investors know the growth potential of your business. You must clearly define the goals and make sure the plan is concise and clearly written.
Create a Profile for Your Company
The profile of your company should include the history of your organisation, the target demographic, the services offered, and the demographic. It should also include how the resources can be used and what traits make your business unique in the industry.
If you have a website, this profile can also be your ‘about us’ page. When well written, these have the potential to attract customers and talent that you could hire. It is also an essential aspect of the business plan.
What Is Your Marketing Plan?
For the business plan to be truly great, you need to state your marketing plan. It should be aggressive and strategic. It should tell the person reading how you can achieve the marketing objectives like:
For each of your objectives, make sure that you list several goals and tactics of how you will achieve the goals you have set. You also need to think about the ‘what’ and the ‘why’ of the marketing strategies tasks ahead.
You Do Not Have to Worry About the Format for Your Simple Business Plan
Many online templates have streamlined formats that you can adjust to meet the needs of accommodating faster movement. It may take time but do not let that stop you from making a good simple business plan.
Do you need more information on how to grow your business and get more profits? Head on to our website and read more.