Why a Business Plan Considered as the First Step of Business - ENTERSLICE

Introduction-In the present scenario it is of utmost importance to know about the competition and the competitors. Business Plan is executed to analyze the present and future prospects of the business and potential competitors entering the market. Every businessman must know the strength and weaknesses of his business to sustain in the market. A Business plan format is a structural design of how the business will work and grows in the future.

What is Business Plan-

A Business plan is a structured plan reflecting the strength, objectives, marketing strategies, profit scenario and budget of the business. It is a document that describes the business, its services, financing activities and all the other details required for the success of the business. For any business, the Business Plan Sample is considered as a decision-making tool. A wide range of knowledge and experience is required from various different business entities.

Key Components of Business Plan-

Key components of the Business Plan include the below mentioned-

• Cover page and table of contents
• Executive Summary
• Vision Statement
• Business description
• Analysis of Business Environment
• Industry background
• Analysis of Competitors
• Analysis of Market trends.
• Summary of Management
• Plan including Operational and Financial Plan
• Achievements and milestones.

Various steps required for writing a Business Plan-

Before writing a Business, plan there are various steps that are required to be followed-

I. Analysis and Research of the Product- Before writing a Business Plan, an individual shall analyze the market trends, type of company and expert advice. It is the responsibility to know about the business and the industry in which a person is entering. The reliability and validity of the research includes-

1.Type of research,
2.From where the data has been collected,
3.Analysis of data and methods of analysis,
4.Tools used for the research,
5. The Rationale for the methodology used while doing research.

The Methodology used while doing research-

Two types of methodology are used while doing research-

1. Quantitative Method-This method includes a survey that measures the rank, category and also identifies the pattern required for the organization.

2. Qualitative Method-Qualitative Method includes Interview i.e. face to face interaction which best describes the phenomena and concepts.

II. Purpose of Business Plan- The purpose of the  business plan template is defined by the  Entrepreneur, which describes

• The financial background  
• The nature of the business, 
• The sales and marketing strategy,
• Anticipated profit and loss statement. However, the purpose of the business plan may vary from situation to situation which is used for different purposes.
• It is a road map that provides directions that helps the business in planning the future.  To attract the investors, the plan must serves a different purpose and must write a plan that targets the investor which helps them to understand clearly and in a concise way. 

III.  Description of the Company Profile- The Entrepreneur shall include the profile and the background of the organization, Disclosure of products or services an organization provides. Further, the company profiles also include-

• The target market and audience, 
• Resources, 
• How an organization will resolve the grievances and what strategies an organization is implementing for making its business unique. 

The profile of the company must be there at the company’s official website which shall attract potential customers and talent. However, the profile can be used by the entrepreneur to describes the company’s business in the business plan.

IV. Record of all the aspects of your business- 

Potential Investors always want to make sure that the business is going to make a fruitful deal for them. With this expectation, investors want to know everything about the business. Recording and maintaining all the document of the expenses occurred, cash flow and industry projections help the investor in making a sound decision. A minor detail is also of utmost use like the strategy and also the agreements.

V. A better strategic marketing plan - A better and planned small business plan also includes a strategic and aggressive marketing plan which typically includes-

• Launching new products
• Expanding or relaunching the market for existing products
• Entering the new marketplace for the company
• Boosting the market in terms of sales and to analyze from where the business will come.

VI- Adaptability for the Audience- The potential investors of a business plan are of different category i.e. which varies from Bankers and venture capitalists to employees. The diversification of the group is an infinite one. The interest of the investor/reader may vary. Once the interest of the reader is known to the organization, it becomes easy for the plan maker to take them into consideration while preparing a plan for that particular category.”

Note-For instance the Financers will be keener in knowing about the financial aspects i.e. balance sheets and cash-flow statements, while venture capitalists will be looking at the basic business concept and the management team. The management will take into consideration the business plan to remind themselves what are the objectives and goals of the organization.

However, it is required to assure that the startup business plan can be changed or upgraded depending on the Potential investor/audience reading the business plan. Before sharing financial projections is it required to keep in mind that the switch of the plan is limited.

Conclusion-The Business Plan is the layout for which the organization will work in the future. However, while sharing your plan with the potential investor or customer or with the management, it must be kept in mind the business plan is well versed and covers all the aspects of the organization. Further, the Business Plan the entrepreneur prepares must create an emotional connect with the potential customer/investor which will help the organization in getting the desired results.

In order to get relevant help and support in creating a startup business plan, you can get in touch with our business plan consultant professionals anytime at Enterslice.