How to write a business plan for your new business line (2021)

Do you want to write the perfect business plan? Are you thinking of starting your own business? Then you do not need to worry because all the guidelines and information you need are available. Getting a comprehensive guide for your new business is the first step to taking your business to the next level. However, the first thing you have to take note of is how to write a business plan. This is what we are going to show you in this article.

If you are new to the business world and you have been asking yourself the question; How do I write a business plan? You do not have to worry because we are going to cover all you need to know about writing a start-up business plan.

What is a business plan?        

A business plan is a formally written outline that highlights the aims and goals of a business. This is usually written with the techniques to be used in achieving the goals of the business, the milestones, and the time frame.

Why Plan?

The purpose of a business plan includes;

  • Creating a winning formula for the development of your business.
  • Attract sponsorship/or investors and lenders.
  • Predict the future financial requirements

Writing a business plan requires a comprehensive understanding of your business ideas and business technical know-how. You should also have the ability to put down your ideas in a formal written document.

This article will cover writing your objectives, strategies, marketing, and financial forecast; all these will help you simplify your business ideas.

Types of Planning

They are four types of planning we are going to be looking into; they will help start-up business owners get the idea of a business plan.

  • Operational Planning: This plan covers the idea of ‘how things need to happen.’ This involves the daily activities of the Company and other one-time events. Operational planning also involves setting up policies, rules, and regulations, solving problems, and so on.
  • Strategic Planning: This answers the question of ‘Why things need to happen in a business. Strategic planning builds the foundation of future goals and long-term plans of a business or Company. The visions and values of a business all fall under this category.
  • Tactical Planning: TP tactics are set to tackle ‘What is going to happen.’  It works in synch with strategic planning. Tactical planning provides answers to how to solve the strategic plans of a business. This is one of the most important plans in writing a business plan.
  • Contingency planning: This plan is made to tackle the unexpected. A contingency plan is vital when there is a necessary need to make changes to a business strategy. Contingency planning might be plans made for an unforeseen problem. However, we should also remember that Change is inevitable.

So how do we write a business plan?

As a business owner, there are some important facts to take note of when writing your business plan.

Here, we are going to give you the highlights on how to write a business plan.

How to write a business plan for your new business line

Executive Summary

This is the summary of the entire business. It is usually written first; this is because it covers the entire ideas behind your business. The executive summary provides a detailed introduction and overview of your business plan.

This also includes the mission, vision, and values of the business and also information about the goods and services your business offers.

Business Description

If you want to write a business plan, this is very important information that will define your business.

The business description should provide details about your product(s)/service(s) and how it could solve the problems of your potential customers. As a business owner, you should set your business apart from your rivals by providing your unique services and special offers.

Market Analysis

A product(s) or service(s) without a target audience will not make sales. In your business plan, you should identify important information about your potential customers. The market research or analysis that a business owner should carry out includes the location, demographics, and target audience problems.

This information will help you in your strategic positioning and effectiveness in reaching your market.

Competitive Analysis

When writing a start-up business plan, your direct and indirect competition should be part of your research assignments.

In the process of your research, you should highlight your competition’s strongest and weakest links. This is how you can strategically position your business for an effective result in reaching the target market.

The aim is to set yourself apart from your successful competitors. Like we mentioned earlier, you should outline the uniqueness of every product(s)/service(s) you offer. This will also help you to attract investors and lenders.

Sales and Marketing plan

Sales strategies, pricing, special offers, bonuses, advertising all fall under the sales and marketing plan. In this section, you should give information about promotional activities and try to convince your target market to purchase your product(s).

Ownership and Management plan.

This plan reveals the management team and structure of your business. This will include your business partners and your team. You need to outline your experience and skills in this section of the business plan.

If you have a team, it is also advised you include the personal skills of each member.

Operating Plan

This provides details about how you want to run your business. The operating plan is usually about daily activities including your location address, facilities, employees, inventories, and suppliers.

Details and descriptions of how your product(s) are produced are also important if it involves manufacturing processes.

Financial Plan

An idea of your financial status is important in writing your business plan. You should know your financial needs and determine if funding might be necessary to elevate the business.

For a start-up business, you need to have a cash flow projection document to help you make a good financial plan.

Appendices and Exhibits

Aside from the executive summary being the first on the list, there is no particular order in writing a business plan. However, this section is just a highlight and outline of the entire plan above.

I believe by now you have a good of how to write a business plan. The points I have mentioned in this article will help answer any questions you have been having about writing your business plan.

If you want to know more on how to write a business plan, check out some available business plan template

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