Business Plan

Any entrepreneurial venture needs systematic planning. A business plan helps in the identification of the resources for successful implementation. It crisply outlines the purpose of the business, the creation of the business, organisational structure, and responsibilities. It highlights the strategies that need to be adopted to achieve organisational goals. A business plan also helps identify the potential risks and threats the business may encounter and their solutions. Generally, investment-seeking entrepreneurs use business plans to propose their business vision to potential investors. It also presents different financial aspects, like income, cash-flow statements, financial ratios, etc.

Business Plan Details

The business plan contains different elements. There are mainly three parts to a business plan.

• Business Concept

It discusses the structure of the business like the related products and services, the structural framework of the organisation, and other relevant details.

• Marketplace section

This section is primarily about the target customers of the business, the competitors in the market, the potential threats and risks, strategies to overcome these threats, and plans regarding how to establish the business in the competitive market.

• Financial Section

This section is related to income, investments, returns, and other financial details.

The length of the business plan can vary from 15 pages to even 100 pages. It primarily depends upon the complexity of the venture.

Business Plan Format

A business plan format has several components. It includes a cover page, title page, and contents page. The main features of the business plan are:

• Executive Summary

It has the purpose statement of the business and other information like the leadership and ownership details, the location of the company, the operational procedure, number of employees, etc.

• Business Description

The business description, products and services, pricing and lifespan, consumer benefits, production and manufacturing processes, different patents and technology, research and development initiatives are discussed here. This section must include a detailed business model, revenue stream, cost structure, key partners, activities, customer segments, etc.

• Market Strategies

The detailed strategy regarding attracting the customers, increasing reach, distribution channel, different campaigns for advertising and marketing, etc., are specified here. Other market trends affect businesses, recovery options, and strategies. Must also be included in this section.

• Competitive Analysis

This section discusses the details regarding the current market scenario, existing competitors, potential risks and threats, the position of the market, strengths and weaknesses, etc. In short, it presents an overview of the target market and the competition in the market. It must be based on deep research and analysis.

• Design and Development Plan

The design of the business processes, how they are to be developed and operated, etc., are included in this section of the business plan.

• Operations and Management Plan

The aspects related to the operation of the business and the management section are presented here.

• Financial Factors

The estimated budget of the business, associated costs for staffing, marketing campaigns, production, and other processes are included in the financial factors. Further financial information like the financial statement, balance sheets, expected returns, potential investors, plans, and expectations from the business, are discussed in this section.

Purpose of Business Plan

Analysing different business plan examples, it can be concluded that the primary purpose of business plans is Internal or External. As far as internal purpose is concerned, a business plan is a roadmap for the venture. It can be considered an internal planning tool that helps the organisation achieve its goals and objectives. Besides, it can also act as a contingency plan that can be referred to if there is a risk of any unforeseen circumstances or potential threats. Different solutions mentioned in the plan can be referred to when required.

The external purpose of the plan is to attract potential investors and present them with a clear idea related to the business. Strategically planned businesses can easily attract investments. Presenting the detailed aspects of the business help can help in pitching better.

Business Plan and Entrepreneurship

Business plans are crucial for entrepreneurial ventures. It helps businesses to identify possible problems and design practical solutions. It helps in critical decision-making. This is a pragmatic approach and helps the business in the long run. Another critical aspect of a business plan is it helps in identifying short-term goals and long-term goals. It sets up the targets and creates a vision.

It helps in planning the resources and allocating them optimally for better results. They help assess the feasibility of different processes and whether they will be beneficial. It also establishes the business’s structural framework and helps present the business better. It makes it easier for entrepreneurs to approach investors.

Conclusion

At times, entrepreneurs are unaware of the difficulties of launching a company. Funding is a crucial aspect of launching any venture and attracting funds, convincing investors with proper presentation of the business idea. Efficient planning, as well as conceptualisation of the plan, along with efficient drafting, can make things easier. It is also essential that the plan portray the objective truth regarding the market scenario, business feasibility, and competitive presence instead of highlighting an excessively optimistic picture. Understanding concepts like financial analysis, market analysis, SWOT analysis, the value proposition can help develop a better idea about the Business Plan.