business planning
Planning is an important process before starting any business and making a written business plan is an important part of this process. There is no need for a business plan in any self investment, but a business plan is needed for bank loan or investment from an investor. The goals and methods of achieving those goals are written. The business plan acts as your guide.What is a Business Plan
Before starting any work, it is planned. The same thing applies to business, so the written form of the plan is called a business plan. Actually a business plan is such a document that answers all the questions like 'what', 'why' and 'how' of a new business. likeWhat is our business?
Why do we want to do this business
How will we do this business?
We get answers to all these questions through a business plan. Mainly a business plan is for a new business, but even if an existing business is doing something new, then the business can be taken forward by making a business plan. A business plan does not only create a start-up but also establishes the business. Changes in the business plan can also be made from time to time according to the circumstances.
Why a Business Plan is Made
You must be thinking that what is the need of making a business plan. Through your business plan, you clearly state your goals in writing and what strategy is being made to achieve those goals. Business plan or business plan is very important for the following purposes-apply for business loan in bank,
Fund raising for your small business or start-up through other means like Venture Capital Firm or Crowdfunding,
Applying for any type of subsidy or any scheme related to business,
For Business Partnership and Franchisee etc.
A well-crafted business plan not only makes it easier to get finance from banks and other external sources but also helps in internal operations.
What is the core objective of making this business plan?
For whom is the business plan being made? Meaning among the people reading this are there investors or bankers whose money has been invested in business?
What is included in your business plan?
Need a concise or detailed business plan?
When these questions are answered, a businessman starts making his business plan. In any one successful and clear business plan, focus is given on the following topics-
Applying for any type of subsidy or any scheme related to business,
For Business Partnership and Franchisee etc.
A well-crafted business plan not only makes it easier to get finance from banks and other external sources but also helps in internal operations.
How to Write a Good Business Plan
There are plans for success in any work. If business is to be successful then planning must be tremendous. Starting a business is an easy task, but continuing it and being successful in it is a different matter, before starting any business, its plan is prepared in the form of a business plan. Therefore, some things are kept in mind before making a good business plan. It is as follows-What is the core objective of making this business plan?
For whom is the business plan being made? Meaning among the people reading this are there investors or bankers whose money has been invested in business?
What is included in your business plan?
Need a concise or detailed business plan?
When these questions are answered, a businessman starts making his business plan. In any one successful and clear business plan, focus is given on the following topics-
low capital start up business
1. What is the purpose of business,2. Clear description of the business,
3. What are the products and services of the business,
4. Helpful in Market Analysis,
5. Description of business structure,
6. utilization of resources,
7. Goal Setting.
Market Analysis
In this, all the important things related to the target market of your product or services are analyzed like-
target market, market size and demand,
Who will you sell to – Target Customer, their behaviour, category and Purchasing Power,
Who are your competitors and how much market share do they have, their strengths and weaknesses,
Significant changes in the demand and market in the future.
Marketing Strategy
This part of the business plan is considered very important. This part describes all the policies that you want to use for your products and services to reach the customers and for market promotion. Under this part, you have to determine the following things-
How will your product or service make its place in the market,
Who are your target customers who will first show interest in your product or services and how will you reach them?
What will be your pricing policy?
How will you promote your product or service like Direct Marketing, Advertising Social Media etc.
How will you deliver your product or services to the customer – Distribution channel,
What will be your Selling Strategy?
Operations
In this part, there is detailed information about all the things related to Business Operations i.e. “How the business will run” like-
Business Place – Where will you do your business. Will you buy or rent the place.
Production Facility and System – What type of production facility do you have and is it as per the requirement.
Purchase Plan – How will you buy your inputs and is it the best way.
Production Plan – How will you produce your product. Based on Demand or Estimates.
Workforce Structure and their Roles – The positions, scope and responsibilities of your employees.
Technology (Systems and Information Technology) – What will be the main IT system of your business
Storage Facility – How much stock will you keep and where will you keep it.
Financial Planning Financial Analysis
The most important part of any business plan is the financial plan because in this part, all the important things and projections of your business are presented in figures or numbers. From this part, the bank or venture firm gets to know about the financial condition of your business and the requirement of capital, on the basis of which banks give loans and venture capital firms invest. This part mainly focuses on the following things-
How much capital or fund do you need for business and where will you use it - Capital / Fund Requirement
How will you raise this capital – Loan, Venture Funding, Crowd Funding, Own Capital etc.
For how many years will you take the loan, what will be its security and how will you repay it,
What will be the Revenue/Income Sources of your business – Sales, Other Incomes
What will be the expenses of your business – Purchases, Interest Payment, Rent etc.
Forcast your business's next 3-5 years profit and loss based on Sales, Revenue and Expenses,
Growth Forcast of Your Business,
Business risk and its possible consequences.
Business plan is the most important document of your business which continuously guides you in taking your business forward. Therefore it should be constructed very carefully.
target market, market size and demand,
Who will you sell to – Target Customer, their behaviour, category and Purchasing Power,
Who are your competitors and how much market share do they have, their strengths and weaknesses,
Significant changes in the demand and market in the future.
Marketing Strategy
This part of the business plan is considered very important. This part describes all the policies that you want to use for your products and services to reach the customers and for market promotion. Under this part, you have to determine the following things-
How will your product or service make its place in the market,
Who are your target customers who will first show interest in your product or services and how will you reach them?
What will be your pricing policy?
How will you promote your product or service like Direct Marketing, Advertising Social Media etc.
How will you deliver your product or services to the customer – Distribution channel,
What will be your Selling Strategy?
Operations
In this part, there is detailed information about all the things related to Business Operations i.e. “How the business will run” like-
Business Place – Where will you do your business. Will you buy or rent the place.
Production Facility and System – What type of production facility do you have and is it as per the requirement.
Purchase Plan – How will you buy your inputs and is it the best way.
Production Plan – How will you produce your product. Based on Demand or Estimates.
Workforce Structure and their Roles – The positions, scope and responsibilities of your employees.
Technology (Systems and Information Technology) – What will be the main IT system of your business
Storage Facility – How much stock will you keep and where will you keep it.
Financial Planning Financial Analysis
The most important part of any business plan is the financial plan because in this part, all the important things and projections of your business are presented in figures or numbers. From this part, the bank or venture firm gets to know about the financial condition of your business and the requirement of capital, on the basis of which banks give loans and venture capital firms invest. This part mainly focuses on the following things-
How much capital or fund do you need for business and where will you use it - Capital / Fund Requirement
How will you raise this capital – Loan, Venture Funding, Crowd Funding, Own Capital etc.
For how many years will you take the loan, what will be its security and how will you repay it,
What will be the Revenue/Income Sources of your business – Sales, Other Incomes
What will be the expenses of your business – Purchases, Interest Payment, Rent etc.
Forcast your business's next 3-5 years profit and loss based on Sales, Revenue and Expenses,
Growth Forcast of Your Business,
Business risk and its possible consequences.
Business plan is the most important document of your business which continuously guides you in taking your business forward. Therefore it should be constructed very carefully.
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