19 May 2023
8 May 2023
Every business whether it be startups or SMEs begins with a vision that is articulated and conveyed through a well-written business plan. Read on for our guide on how to write a business plan.
There are a range of reasons why you might consider writing a business plan, from clarifying your intentions to securing a business loan.
During the planning process, specific goals are established and strategies to achieve them are developed. In another word, it will help streamline and refine ideas by distinguishing between priorities and non-priority, conserving valuable time.
While conducting a business plan helps identify potential issues that were not evident before conducting research or that you had not previously considered.
A good business plan is crucial if you are seeking financing from a bank or external investors, as it can help attract new business partners, such as agents or distributors, and senior management.
A typical business plan consists of the following elements:
Descriptions of products and/or services
The management and operational structure
Marketing and sales strategy
To easily create a business plan that will keep everything organised and to prevent confusion, refer to DocPro’templates for business plan.
In this section of your business plan, you should clearly articulate the market pain that your product or service will address. This can involve conducting market research to identify the specific needs and pain points of your target customers, as well as analyzing competitors and existing solutions in the market.
It is crucial to have a section dedicated to detailing the products or services that your business offers. Additionally, if you hold any patents or trademarks, this is the ideal place to showcase them. It's advisable to include any relevant visual aids in this section, as well as a comprehensive explanation of your pricing strategy and materials.
Demonstrate how your offerings are critical to the market and fill a significant gap. You also need to describe how the company will attract and increase its customers base. It's also an opportunity to position your business within your industry and highlight any notable distinctions that give you a competitive edge in the marketplace
Understand your ideal customer profile
Research relevant industry trends and trajectory
Use of advertising and marketing media
This section is important because it allows investors and stakeholders to understand the current state of the company and its progress towards achieving its goals.
Provide the current state of the product, including any updates or changes that have been made since the last business plan. This section should also include plans for future improvements or enhancements, and the launch date of the product.
Provide an update on the company's performance and financial status. This should include information on revenue, expenses, profitability, and any key milestones or achievements that have been reached since the last business plan. This section should also provide roadmap for future partnership and client development initiatives, include information on new partnerships or clients that the company is targeting, as we as any progress made with existing partners and clients.
Provide various elements such as IP, organisation chat, shareholder structure, fundings, and other factors related to the company's corporate development initiatives.
Intellectual Property (IP): Discuss any progress made in terms of IP development, acquisition, or licensing. This could include any patents or trademarks secured since the last business plan, as well as any new licensing agreements or technology partnerships that have been established.
Organisation: Discuss any changes to the company's organizational structure, including any new hires or promotions, and how this has impacted the business.
Shareholder Structure: Describe any changes in the company's shareholder structure, including any new investors, equity issuances, or changes to voting rights. This section should also provide an overview of the company's capitalization and ownership structure.
Funding: Provide an update on the company's funding status, including any recent funding rounds or other sources of capital. This section should also highlight any key investors or strategic partners that have provided funding to the company.
This is a crucial component of any business plan as it provides an understanding of how the business will generate cash and how it will be used. Here are some important elements to consider when including the cash flow status in a business plan:
Cash inflows: generate cash, including revenue from sales, investments, and any other sources of income.
Cash outflows: various expenses that the business will incur, including salaries, rent, utilities, and any other operational costs.
Typical writing errors such as grammatical mistakes and misspellings are among the most frequent mistakes found in business plans. To ensure clarity in sentence construction, it is crucial to proofread your plan before presenting it to potential investors or collaborators.
A lack of exit strategy is a significant drawback. Investors interested in your business plan primarily seek a clear indication of your venture's potential for profitability. Without a well-defined exit plan that outlines the means for them to depart the business while maximizing returns, you're likely to face difficulty in securing funding.
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