The thought of starting a business is an exciting feeling for many potential entrepreneurs. That said, one of the first things that potential entrepreneurs will want to look into is how to write a business plan. You have two options that you can choose from: you can write the business plan yourself, or you can give in to the temptation of adopting an easier approach, which is to hire someone to do the needful for you.
Let us dive into the essentials of writing a business plan.
Business Plan – An Overview
A business plan is a well-researched and refined document that helps businesses with several aspects, including the following:
- Get a business loan
- Raise equity funding
- Plan business objectives
Other objectives of having a business plan include getting professional reviews of your business idea and getting agreements between business partners, in which case you will have to include the legal aspects in your business plan as well, such as cta reporting and reporting for BOI.
The business plan will also help you set a value for your business and establish your USP, also known as a unique selling proposition. The business plan will help you get an overview of your business in a way that you can indicate gaps and evaluate new product lines.
Start with the Executive Summary
When it comes to writing a business plan the right way, you will want to write the executive summary. The number one reason that potential entrepreneurs fail to find financial investors for their business is due to a poorly written executive summary.
No matter how great the business idea or how qualified you and your team are, if you cannot get the executive summary right, you might fail to secure a business loan.
Include the Business Description
The essential benefit of having a good business description is that it makes your work a lot easier. When you write a formal business plan with the hopes of qualifying for a business loan, you need to let them know that you know what you want to do.
Ideally, the business description should meet the expectations of your potential customers when they see your products or services. So, you will want to thoroughly investigate your target audience and get into the head of your ideal buyer persona.
The business description should also include the following aspects:
- The legal structure of your business.
- The type and location of your business
- The products and services that you want to provide to your potential customers.
Include the Organizational Structure
You will also want to include details about the organizational structure and management of your business in your business plan. You will want to include details about who is part of the management and who will be the board members of your business organization.
You might as well want to describe why the members have been chosen to be a crucial part of your business organization and management. In the description of the organizational structure, you will want to include the details of employees, managers, and other people that are important to the organizational structure.