Breaking Business Plans Down to Smaller Steps

A business plan is designed to describe an enterprise, but many entrepreneurs forget that the process is more complicated than simply writing a document. It can be overwhelming tracking every detail of your company and providing all the information you'll need for your investors. However, if you break down each step of the process into smaller steps, it will make it easy for you to perform tasks and provide a timeline. This means that in no time at all, you’ll have a completed plan, ready for presentation to new or old investors in your company—or for use as a reference point in future planning periods.

Step 1: Write a Business Plan Cover Page

Your business plan cover page is your introduction to the reader, who will check your work for accuracy and other details. It sets the tone for everything that follows. You may want to include an accurate company logo, contact information and a description of what you intend to do with your business idea. (You can find these items on the next page.)

Many writers choose not to include their names in their plan because, in most cases, whoever reads it will not be able to contact them for assistance—they’re planning on going it alone! As mentioned, people can be helpful when they see you're taking steps toward a goal and are willing to share information.

At the very least, it’s good to include a web address so your readers can find you. If your business idea is one that needs technical expertise or outside assistance, make sure to include this contact information.

Step 2: List the Company’s Attributes

What makes you different from your competitors? What are your business plan cover page strengths? Include as many as you can; they may differ from company to company. For example, if one of your biggest strengths is customer support and quality, it might be okay to mention that in a technology-based start-up.

Step 3: List Your Company’s Weaknesses

It’s been said that the greatest strength is the ability to recognize your own weaknesses. List the weaknesses that you can control and determine how to overcome them. If you don’t know where they are, ask someone who works with you. Make sure that they are realistic and have a plan to overcome them before providing an answer to this step.

Step 4: State Goals

If it’s important for your company to become successful and make money, there will be goals that you must accomplish, such as selling products, growing and hiring people; these are called objectives. Define each one so everyone in your company is on the same page.

Step 5: List the Company’s Strengths

It's a good idea to list your company's strengths before listing its weaknesses. This will give you something to look at and refer to as you develop your business plan. Strengths are the positive aspects of your company that enable it to be successful. They include technical abilities, experience, financial resources, marketing acumen and even employee management skills.

Step 6: Describe the Market for Your Company’s Products or Services

List ways that you can reach the market for your products or services; this includes any special characteristics of market trends or targets. Listings include geographic regions, distribution channels and potential strategies for reaching specific goals.

Step 7: Describe the Industry

This section is about the business environment of your field. Listing all industry facts is an important step and gives you a bargaining tool when you discuss terms with a potential investor.

Step 8: List Methods You Will Employ to Grow Your Business

You may find some of these methods useful in your planning. If not, eliminate them or write “none.” Many writers leave this step blank because they know they will use some of these tactics but have no need to list them here; let your experience guide you.

Step 9: List Company Strengths

This is a repeat of point 5; it’s good to have both positive and negative factors at hand, particularly when it comes time to negotiate with an investor.

Step 10: List the Company's Weaknesses

This is also a repeat of point 4; also, be sure not to forget this step.

Step 11: Define Your Target Market

Where will you focus your marketing efforts? If you have only one geographic region in mind, why? What about a multi-regional approach? The answer will depend on your budget and your target market’s locations. Be realistic when you select the location(s) that best meets your needs. Step 12: Identify Competitors

List the top five competitors and who they are in the market. If you can’t name five, you’ll have to dig deeper and learn more about the industry. Step 13: List Your Customers

This is vital for any company that is going to sell products or services. Knowing your customers is paramount, even if you plan on hiring outside help to find them.

Step 14: Describe Your Company's Goals

Anyone who creates a business plan with goals in mind has a better chance of succeeding than someone who doesn’t do so. In this section, state your goals in detail and state them clearly. Be sure to include how long you intend to be in business.

Step 15: Describe Your Company's Plans for Meeting Its Goals

In this section, describe what you plan to do to reach the goals that you set out in Step 14. You may want to list potential investor resources here as well as how long it will take each step of the process for reaching each objective category. The purpose of Step 15 is to articulate how your company plans on achieving its business plan and exit strategy goals.

Step 16: List Your Market's Needs

This is the final step. You are now well on your way to creating a business plan that will help you reach your goals. Know what selling products and services will take place, who will buy your product or service, the amount of money you hope to get for it and the methods you intend on using to sell it. Be realistic about how much support you can provide for your business ideas as well as what financial resources you have available; if any of these are in doubt, don’t do anything until you’ve settled this matter or refer it to an advisor who can provide financial advice on solving this dilemma.

Conclusion

Business plans are a critical tool that businesses can use to improve efficiency and productivity, determine profitability or the lack thereof, and facilitate decision-making.

These are a few of the most frequent objectives referenced when business plan is mentioned. There will likely be other objectives which may be discovered during research but the main point is that no matter what your objective is, writing a business plan will help you determine whether your company will be successful or not.

The Importance of Defining Buying Persona in Business Plan

Businesses today have become more sophisticated in presenting their unique selling propositions with strategic business plans to new and existing customers, who can help them achieve their goals as well as gain greater market share.