Introduction
An instrument that all entrepreneurs need to get right before setting out is a document called the ‘Business Plan’.
Developing a business plan is not as difficult as some people take it to be. You can personally draft your business plan without involving a consultant. All it takes to develop a personal business plan for your business is for you to have an understanding of all the elements that a business plan should contain. This article is written to provide a guide on how to write your business plan.
What’s a business plan?
A business plan is a document that contains detailed information about the business that an entrepreneur is trying to set up to render a service and/or produce a tangible product that people will be willing to pay for. A business plan describes the venture that you will create to exploit a concept. It's a tool for understanding how your business is put together. The process will help you learn how to manage your own company more effectively while you become an expert in your industry and business. It creates a framework for you to start and grow your business.
Business Plan Outline
The outline of a business plan varies from business to business and from individual to individual. Therefore, there is no specific or mandated format to follow in preparing a business plan. But there are some basic features that all business plans must have.
Ideal Business Plan Outline
There are many different Business Plan formats. The layout may vary depending on the type of the business, the purpose of the plan and the readership. The following format can be amended to meet the needs of your business.
i) Executive Summary: The executive summary demonstrates your knowledge of the business opportunity and proves that any investment in the venture will yield a good return.
ii) Company/Opportunity Summary
a. Company history
b. Description of business opportunity
iii) Product, Service and/or Technology Overview
a. Description of product, service and/or technology
b. Description of the innovation
c. Value proposition and customer needs
d. Description of intellectual property position
iv) Market Opportunity
a. Market analysis – description of the market, industry and specific opportunity
b. Description of the target market and customers
c. Competitive landscape – description of competitors vis-à-vis the competitive advantages of your
product, service and/or technology offering.
v) Company Management
a. Description of the management and its associates skills, talents and experiences
b. Human resource plan – description of key hires.
c. Resumes of founders and existing or proposed shareholders (if applicable)
vi) Development Plan
a. Description of product development milestones and associated timeframes
b. Description of sales and marketing strategy, including revenue model.
vii) Financial Plan
a. Projected cash flow statement
b. Use of funds
c. Investment needs, short-term and long term financing requirements.
Conclusion
The Business Plan will help you anticipate barriers to success in your chosen business and prepare you well ahead to turn all these barriers around as strengths and opportunities.
References
Stephen Lawrence and Frank Moyes (2004) .Writing a Successful Business Plan,
Deming Center for Entrepreneurship, Leeds School of Business, University of Colorado at Boulder.
New Brunswick Innovation Foundation Business Plan Outline.
OCRI Entrepreneurship Centre (2002). Writing an Effective Business Plan. Ottawa, Canada.NBIF Business Plan OutlineNBIF Business Plan Outline
About the Author
Ajiboro Ayodeji is a Chartered HR practitioner based in Lagos, Nigeria. His areas of interest are Human Resource, Training, and Entrepreneurship Development. Tel: 2348027807452. Email: hutrenconsulting@gmail.com.
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