What is a business plan? How to write a business plan?
A business plan is a written document that describes in detail the proposed new business venture and projected business results, written by the entrepreneur (or/and the person he/she hires) in order to have a detailed and realistic view of the goals, activities and potential of the new business venture.
As an internal document, the business plan serves the company’s management to analyze the current situation in which the company is, defines the steps to be taken to improve the situation, as well as to monitor the implementation of planned business activities.
As an external document, the business plan serves banks or potential investors to decide whether to invest their money in the company or not.
As a high school and college student, I came across the development of a business plan, and through the following steps, I will try to explain in detail how to write a business plan.
Now that we have learned what a business plan is, these are steps on how to write it. 😎
Like any document, a business plan has its own form. Through the form I will explain to you the steps and information needed to write the best possible business plan.
So, let’s start:
Step 1: Create a table in which we enter information about the company.
Step 2: Starting point, i.e., the creation of a business idea. Describe the company: the location, goal, what services the company offers, investment plan, and the vision and mission of our company. Try, in a few sentences, to explain to the investor or employees what the goal of our idea is.
Step 3: The Sales Market. In this step, we examine the geographical dimension of the market and the target group. The geographical dimension is what we plan to cover, that is to meet the needs of people in the target area, and with target groups we are talking about people who will buy our services.
Step 4: We are talking about competition. Who are our competitors? We analyze their work. Of course, we are talking about competitors that cover our geographic dimension of the market.
Step 5: What are we going to sell? Sales range.
Step 6: My favorite. Marketing plan – describe how you will promote yourselves, how you will reach the customer and through which channels. One page is enough.
Step 7: Once we have figured out what to sell, we need to figure out how to procure. Procurement market. Here we are talking about raw materials:
Then, the type and quantity of finished products or goods:
Step 8: Estimate the purchase prices of the goods.
Step 9: After analyzing the customer market, procurement and sales. We move on to the technological aspects of the project. Here we are talking about buildings, what we own and in what value.
Step 10: Then comes the equipment and the necessary energy sources:
After the easier and more interesting part, there are also finances. It’s a story for itself, we have one whole blog about it, which will be published tomorrow. 😃
A business plan is a process that requires active work, at least a month, but it pays off. You can see what you have, what are your advantages and disadvantages, and many other details, which make your job much easier. 😉
That’s why I sometimes wonder how easy the form for microbusiness is.
You can also consult the form issued by the FBiH Development Bank.
If you have any questions, feel free to ask. 👀 And of course, come back and read some other blog.
