Develop the Business Plan | BLOG
Business planning is a very important function in a business. The result of the process is development of a business plan. There is no better way of expressing your business in details than in a business plan. A business plan is used to pitch to people who are interested in financing or partnering with your business. It helps them to understand your business in details so that they can make their decisions.
It’s now the time to use the knowledge acquired to develop your business plan.
A business plan has the following major elements:
- Business Description: Briefly describe the general nature of your business. From this section the investor must be convinced of the uniqueness of the business and gain a clear idea of the market in which the company will operate.
- Company Background: Provide a short summary of your company background. For instance its history, values, philosophy and objectives.
- Management: List senior management and prior experience
- Products/Services: Convey to the investor that the company and product truly fill an unmet need in the marketplace. The characteristics that set the product and company apart from the competition need to be identified (competitive advantage).
- Technologies/Special Know-how: In this section, highlight whatever aspects of your product that may be protected by current IP or patent law. Provide evidence of how your offerings are different and will be able to develop a barrier to entry for potential competitors.
- Markets: Provide a clear description of your target market, and any market segments that may exist within that market. Include potential market size and growth rate. Also, mention your revenue model in this section.
- Distribution Channels: Indicate which channels will be used to deliver your products/service to your target markets (i.e. website, direct sales force, VARs, channel partners, etc…).
- Competition: List any current or potential direct and indirect competition. Briefly describe the competitive outlook and dynamics of the relevant market in which you will operate.
- Financial Projections: Give a comprehensive first year projection month by month and also a five year financial projection per year.
Always note that business plans vary depending on the line of business and the target group. A business plan for bankers is refined differently than that of investors. You can always download and customize our Business Plan Template, in case you want to create a business plan for your business.
However, if you need a professional to design a business plan for you, you can hire a Business Planning Consultant