StartUp Guide: How to prepare and write a Business Plan?

For every startup pitching their business to a potential stakeholder, they will have to present a business plan. The stakeholders could be you, as someone wanting a direction; a co-founder; investor or mentors. A business plan is vital for the success of your organization. But, how do you write a business plan?

For that, you need to understand what a business plan is. It is a written document that describes your business in detail. That is, it contains your business goals, the methods on how you will achieve these, and the time frame to achieve these goals. Thus, a b-plan is on paper, the layout of your business model.

There are various types of business plans, but they are more-or-less the same. But first, understand the key elements of the b-plan.

These are the key takeaways and important terms of a business plan that you need to know.

1. The document of the business plan has to be 15-20 pages long. Anything more, or less, will either give to much information or not enough information.

2. You need to start with a projective budget. Consider you have an investment of the amount and draw the outline of how you will spend it. Since it is not an easy task, on a rough paper, start in reverse. For example, you decide the payable remuneration, the cost of machinery, advertisement costs, contingency activities, etc. Add up the amount and add the inflation rate and there, you have the budget.

3. Know your market, your competitors, your USP and your vision and mission.

4. Understand the process of application of patents, copyrights to save time later on. You don't want to seem out of depth when writing the business plan.

5. Research your competitors and find out what their market strategy is. Kow the distribution channels, best marketers, and what marketing strategy you would want.

6. Know the person you are pitching. Just like no two persons can be the same, no two business plans can be the same. You should know what the reader expects of you. If he/she is an investor, they will be much more interested in knowing the longevity of the plan. If the reader is a potential partner, they need to know their role, the scale of the business; and why should they leave the comfort of their job, for a business.

As mentioned above, no two business plans are the same. But they all have the same elements. I have, thus, enlisted a step-by-step process on how to write a business plan.

How to write a Business Plan?

1. Write down the Executive summary of the plan.

This section outlines the company and includes the mission statement along with any information about the company's leadership, employees, operations, and location. It also gives the purpose of the B-Plan. Majorly, we draw a b-plan to identify, describe and analyze a business opportunity and/or a business already underway; or examine its technical, economic and financial feasibility.

2. Write about the Product, Team and any RnD.

Here, you need to outline the products and services that you will offer. This part should answer questions like: What are you actually selling and how are you solving a problem (or “need”) for your market? What is the price of the product? The product lifespan and benefits to the consumer?

Other factors that may go into this section include production and manufacturing processes, any patents the company may have, as well as proprietary technology. Any information about research and development (R&D) can also be included here. Talk about the team, their duties and roles.

3. Marketing Plan and market analysis.

This section is the second most important aspect of the b-plan. Here, you need to explain the industry and your target market. Then, outline the competition.

This section will also present the strengths and weaknesses of the industry, your competitors and you. It will also describe the expected consumer demand for what the businesses are selling and how easy or difficult it may be to grab market share from incumbents. Answer the question: How are you going to take your opportunity and turn it into a business? What will be your marketing and sales plan, operations? Advertisement methods and distribution & reach strategy are also a part of this heading.

Explain the milestones and metrics for success. Talk about how the company will attract and keep its customer base.

4. Finances

If you are selling the business pitch to an investor, you need to plan the future projections such as financial statements, balance sheets, and other financial information. If you are just a plan on paper, you will need to state the targets and estimates for the first few years of the business. This part will also include budget planning. Here, you must state the costs of staffing, development, manufacturing, marketing, and any other business expenses.

5. Appendix

If you need more space for product images or additional information, use an appendix for those details.

Your business plan is a sketch on paper, your writing art will determine its relevance. Just chart a business plan on the above pointers and you will be good to go.

Read More: A Startup Guide