How to Write a Business Plan Part One
Every business needs to have a written business plan. Whether it’s to provide direction or attract investors, a business plan is vital for the success for your organization. But, how do you write a business plan?
In this article, we will be identifying what you need to have in mind in order to write a business plan!
The executive summary’s purpose is to distill everything in the business plan into a single page, and give a high level of overview of your business, that one page constraint can make it seem that it is impossible to squeeze in all of the information, but don’t worry! Just break down each section of the business plan into one or two sentences to ensure that everything is written down and it is scannable.
Your executive summary should include your business concept, goals and vision, product differentiation and description. Your target market, your marketing plan, your current financial state, projected financial state and your team!
This section of your business plan should include these questions: Who are you? And what do you plan to do?
Answering these questions provides an introduction to why you’re in business, why you’re different, what you have going for you, and why you’d be a good investment, answering these questions, you will also want to include in your overview;
- Your business structure
- Nature of your business
- Vision, Mission, and Values
The mission, vision, and values statements are the guiding forces behind an organization. The mission statement communicates the purpose of the organization. The vision statement provides insight into what the company hopes to achieve or become in the future.
The values statement reflects the organization’s core principles and ethics. Together, these statements provide strategic direction for an organization, informing current and future business strategies.
In this section you will want to write about an overview of your potential market, an analysis of your business’ position within that market and an overview of the competitive landscape.
A market analysis can make or break your business. So it is important to study the market before anything else.
If you choose the right market with the right product, you most likely have a headstart on success.
For this analysis, you will want to identify the companies that can be considered as a direct competitor, and then it is important to state what you can do to differentiate your product and overall business from theirs. You might also want to have an attractive logo design so that people will notice your company.