A Business Plan is also known as a:
- Business Proposal
- Marketing Plan
- Business Strategy
- Marketing Strategy
- Sales Plan
Lenders and investors are constantly presented with new business proposals. If you provide all the required information in a consistent format then lenders and investors can make an efficient and fair analysis about the viability of your business ideas. By preparing a comprehensive business plan you send a message to your lenders and investors that you have already made an objective assessment of your business ideas and that you are serious about your business plan.
This is also the same for online sellers to access brands and even some market places.
In a manufacturing environment, the Cost of Goods Sold includes the material costs AND the direct labor costs necessary to produce finished goods.
In a simple retail or wholesale environment, COGS can be calculated as beginning inventory plus purchases minus ending inventory. Ideally, this indicates the inventory consumed in the reporting period.
Benefits of a Business Plan include:
- Ensures you take a disciplined approach to analyze your business ideas.
- Shows your investors and lenders that you have systematically analyzed your business ideas.
- Helps you clearly define your goals and what you want to accomplish.
- Helps you identify and analyze your risks as well as your opportunities.
- Helps you assess the strength of your target market.
- Helps you define your day-to-day business processes and challenges.
- Helps you analyze costs and capital requirements.
What is included in a Business Plan?
While a Business Plan may vary in how it is organized, it can include:
Executive Summary: This portion of the plan summarizes your company. It can include an overview of your company's management structure, a description of your product/service, your goals, and a summary of your finances and marketing strategy.
Business Description and Mission Statement: This is a brief rundown of your business's history, ownership, and its mission or vision statement.
Product or Service: Here you can include a breakdown of what your product or service is, its unique features, any patents you may have, as well as any future products you want to develop.
Marketing Strategy: Your marketing strategy is how you plan to get your product or service in front of customers. This is where you can include your ideas for promotion (online/traditional methods), as well as how you physically plan to sell your product or service (brick-and-mortar, e-commerce, etc.)
Competitors Analysis: This section describes your competition and how you intend to compete against their current strategies.
SWOT: SWOT is an acronym for "Strengths, Weaknesses, Opportunities, Threats." A SWOT analysis evaluates these specific aspects of your business.
Operations Overview: An operations overview provides a glimpse into the daily operations of your business, including the management and staffing structure, human resources plan, your physical operational facility, and your production methods, such as quotas or manufacturing details.
Financial Plan: Your financial plan may include your company's income (profit and loss) statements. It can also encompass your capital requirements if you are pitching your ideas to investors. In that case, you may describe the investment amount you require and how you plan to repay this capital in a repayment plan.
How to write a business plan?
Research is your best friend. Find out whatever you can about businesses, market and competitors, this will give you a head start into drafting a business plan. I think this step-by-step guide by Entrepreneur.com is rather helpful. I’d suggest this as a compulsory read for those who want to write up a business plan for startups.
Think about the Dimension of the Business
Startups usually sprout out of people with a technology or business background. When they write a business plan most of the focus is on information that they’re experts on.
For instance, a technician is most likely to concentrate on technology and how it’s different from others in the market. If the plan is written by a business analyst, then sales numbers will be the central idea in it.
In reality, the business plan should encompass a broader vision, from technical details, sales numbers, marketing strategy to profits. It all needs to be in one place whether you’re showing it to a salesperson or the CEO.
Keep it short
Business plans should be short and concise.
The reasoning for that is twofold:
- First, you want your business plan to be read (and no one is going to read a 100-page or even 40-page business plan).
- Second, your business plan should be a tool you use to run and grow your business, something you continue to use and refine over time. An excessively long business plan is a huge hassle to revise—you’re almost guaranteed that your plan will be relegated to a desk drawer, never to be seen again.
Know your audience
Write your plan using language that your audience will understand.
For example, if your company is developing a complex scientific process, but your prospective investors aren’t scientists, avoid jargon, or acronyms that won’t be familiar.
Accommodate your investors, and keep explanations of your product simple and direct, using terms that everyone can understand. You can always use the appendix of your plan to provide the full specs if needed.
Don’t feel intimidated
The vast majority of business owners and entrepreneurs aren’t business experts. Just like you, they’re learning as they go and don’t have degrees in business.
Writing a business plan may seem like a big hurdle, but it doesn’t have to be. You know your business—you’re the expert on it. For that reason alone, writing a business plan and then leveraging your plan for growth won’t be nearly as challenging as you think.
And you don’t have to start with the full, detailed business plan that I’m going to describe here. In fact, it can be much easier to start with a simple, one-page business plan—what we call a Lean Plan—and then come back and build a slightly longer, more detailed business plan later.
Start with a clear, concise executive summary of your business. Think of it as an elevator pitch. In no more than two pages, billboard all the important stuff. At the top, communicate your value proposition: what your company does, how it will make money and why customers will want to pay for your product or service. If you are sending your plan to investors, including the amount of money you need and how you plan to use it. You have to know the whole picture before you can boil things down, so tackle the summary after finishing the rest of your plan.
Tip: One sentence business overview
At the top of the page, right under your business name, include a one-sentence overview of your business that sums up the essence of what you are doing.
This can be a tagline but is often more effective if the sentence describes what your company actually does. This is also known as your value proposition.
The tutorial starts at 1:20 Whether you're starting a new business or just trying to get your existing business a bit more organized, writing a business plan is a perfect way to clearly outline how your business operates, declare goals, and set out a strategy to reach those goals. In this video you'll learn about the six essential pages every business plan should have, what to record on each of those pages, and also how to write your business plan as quickly and easily as possible -- even if you're a complete beginner
Marketing with a Plan for Business
Advertising system The central objective is to acquire expanding deals and accomplishing a supportable upper hand in business All Marketing Strategies incorporate Both here and now, and long haul exercises in the field of showcasing that arrangement with the investigation of the vital beginning circumstance of an organization and the detailing, assessment and determination of market-situated methodologies that add to the objectives of the organization and its promoting goals. Advertising procedures cover everything from Pay per click, internet searcher promoting, advertising (PR), Engineering with Marketing and significantly more. You should make an unmistakable target to each advertising effort you wish to attempt.
Building up an advertising system
Key arranging starts with a sweep of the business condition, both interior and outside, this incorporates understanding vital imperatives.
A comprehension of the outside working condition, including political, financial, social and mechanical which incorporates statistic and social viewpoints, is important for the recognizable proof of business openings and dangers. This examination is called PEST investigation.
All investigation is to distinguish openings and dangers in the more extensive working condition. Firms endeavor to use openings while attempting to cushion themselves against potential dangers. Fundamentally, the PEST examination guides key basic leadership.
political mediations with the possibility to disturb or improve exchanging conditions e.g. government statutes, arrangements, subsidizing or appropriations, bolster for particular businesses, exchange assertions, charge rates, and financial approach.
financial variables with the possibility to influence benefit and the costs that can be charged, for example, monetary patterns, expansion, trade rates, regularity and financial cycles, purchaser certainty, buyer buying power, and optional earnings.
social factors that influence interest for items and administrations, buyer states of mind, tastes and inclinations like socioeconomics, social influencers, good examples, shopping propensities.
Advancement, mechanical improvements or achievements that make open doors for new items, enhanced generation forms or better approaches for executing business e.g. new materials, new fixings, new apparatus, new bundling arrangements, new programming, and new go-betweens.
While completing a PEST examination, organizers and investigators may consider the working condition at three levels, to be specific ''the supranational''; ''the national'' and ''subnational'' or nearby level. As organizations turn out to be more globalized, they may need to give careful consideration to the supranational level.
Notwithstanding the PEST examination, firms do a Strengths, Weakness, Opportunities and Threats SWOT investigation. A SWOT examination distinguishes Using your Strength to Overcome Weaknesses, Using Opportunities to Overcome Threats
particular abilities, capabilities, aptitudes or resources that give a business or undertaking with leverage over potential adversaries; interior factors that are great to accomplishing organization targets
inward lacks that place the business or task off guard with respect to opponents; or inadequacies that keep an element from moving toward another path or following up on circumstances. inward factors that are horrible to accomplishing organization goals
components in the condition that the business or undertaking could endeavor further bolstering its good fortune
components in the condition that could disintegrate the association's market position; outside factors that keep or frustrate a substance from moving a coveted way or achieving its objectives
In the wake of defining the objectives showcasing, technique or advertising design ought to be created. This is a clarification of what particular moves will be made after some time to accomplish the targets. Plans can be stretched out to cover numerous years, with sub-plans for every year. Despite the fact that, as the speed of progress in the marketing condition stimulates, time skylines are getting to be plainly shorter
In a perfect world, systems are both dynamic and intelligent, somewhat arranged and in part spontaneous. To empower a firm to respond to unexpected advancements while attempting to keep concentrated on a particular pathway, a more extended time allotment is favored. There are recreations, for example, client lifetime esteem models which can enable advertisers to lead "imagine a scenario in which" examinations to gauge what may happen in light of conceivable activities, and gauge how particular activities may influence such factors as the income per-client and the agitate rate. Methodologies frequently determine how to modify the showcasing blend; firms can utilize devices, for example, Marketing Mix Modeling to enable them to choose how to distribute rare assets for various media, and in addition how to apportion finances over an arrangement of brands. What's more, firms can lead investigations of execution, client examination, contender investigation, and target showcase examination. A key part of promoting methodology is frequently to stay with advertising reliable with an's all-encompassing statement of purpose.
Promoting system ought not to be mistaken for an advertising target or mission. For instance, an objective might be to wind up plainly the market pioneer, maybe in a particular specialty; a mission might be something along the lines of "to serve clients with respect and poise"; conversely, a promoting system portrays how a firm will accomplish the expressed objective in a way which is predictable with the mission, maybe by point by point gets ready for how it may fabricate a referral organize. Methodology differs by sort of market. An entrenched firm in a developed market will probably have an unexpected technique in comparison to a startup organization start-up. Plans, as a rule, include observing, to evaluate advance, and get ready for possibilities if issues emerge.
The prerequisites of individual client markets are one of a kind, and their buys adequate to make suitable the plan of another advertising blend for every client.
In the event that an organization embraces this sort of market technique, a different promoting blend is to be intended for every client.
Particular advertising blends can be produced to engage the majority of the portions when showcase division uncovers a few potential targets.