Every Business should have a winning business plan. A business plan is a written plan which describes your Business, your goals, and objectives and it tells us exactly how you are going achieve them.
Writing a business plan is in itself not a very interesting part of starting a new venture, but seem to be THE MOST IMPORTANT part of an entrepreneur’s life, especially the ones who are heading into their first pitch for funding.
Most start up business needs funding from commercial banks or investors. A well-written business plan can help convince investors or lenders to finance your business.
A Winning Business Plan Should Answer The Following Questions.
Define the major problems your customer has. Describe the gap that exists in the market and explain what has given rise to this gap.
Answer the following questions:
- Where is the gap in the market?
- What has given rise to this gap?
How the gap was identified and how it can be filled.
Answer the following questions:
- How was this gap identified?
- How will the gap be filled?
How are you at least 10% better than your competitors? Why are you different to other companies out there?
Critical Success Factors?
What do you have that can’t be easily bought or copied?
Who are your target customers?
- Do they have significant power or influence over the prices they pay?
- Do they have significant choice when buying the product or service?
This is the reasonable estimate of your company’s financial future. This should include
- Start-up expenses and capitalization: a description and explanation of what it will cost to launch the business and where you expect to get this money
- 12-month profit and loss projection (month-by-month) and a three-year profit and loss projection (quarter-by-quarter)
- A 12-month cash-flow projection and a three-year cash-flow projection (quarter-by-quarter)
- A projected balance sheet at start-up and at the end of years one to three
- A break-even calculation
The three most important financial statements to include in your business plan are the income statement, cash flow statement and balance sheet. Of these three, the income statement is the best place to start. It is a simple and straightforward report on the proposed business’s cash-generating ability. It’s a score card on the financial performance of your business reflecting when sales are made and when expenses are incurred.
Here are The Main Components of a Winning Business Plan:
When you break down the structure of a business plan, it consists of the following components:
- Title Page and Contents
A business plan needs to be put well together so that it looks professional and is easy to read. You can include a table of content that follows an executive summary. It makes easier for readers to find any information required regarding your business plan.
A page or two that highlights the problems you are solving for customers, your target audience, competitors, founding team, financial forecasting, and everything else that can help investors know more about your company.
Though this section appears first, consider writing it last, after you’ve worked out the details of your plan and can summarize your thoughts succinctly and accurately.
The executive summary is probably the most critical part of the business plan many business plan readers will read the executive summary and then decide whether to proceed further or discard the plan.
- Detailed Analysis of customer needs and their benefits
You are in the market to bridge the gap with your products and services. In this section your task is to highlight product offerings, costs/price lists and deliverable
- Market Analysis Summary
This is where you describe your target market, type of customers, competitors and how your product has the potential to stand out in the market. Is it a disruptive business model? What have you planned to capture the attention of your target audience?
- Execution and Teams
Use this section to outline your sales plan, marketing plan and other logistics requirement. What technology you are going to implement to get your business up and running. Along with it who would be helping you in execution. What is your team size and what experience do they have to run a business model such as yours.
This section should demonstrate cash flow tables, projected profit & loss, sales forecast, and business ratios, along with break-even analysis. In short, justification for how much money you need to launch your product or service.
All of these sections combine to create what is hopefully an exciting and viable story of a business that is to be launched or a growth path that will take an existing business to new levels of impact and success.
There are some important things to remember when writing your winning business plan. You need to be as realistic as possible with all projections. The small details are important, so have the plan proof read by someone with a good command of the English language to check for any spelling or grammatical errors.
It sound complicated, don’t get frustrated or discouraged there’s a very wise saying, “Why reinvent the wheel when you can simply modify it to suit your requirement”. Invention has already taken place Readers, it’s time to innovate and make the best use of the available resources.
Check out free business plan format and template for Startup at this site. You will get everything that you need to write a business plan.