So you’ve decided to start a business. Maybe it’s just an idea at this point, or maybe you’ve already invested some time and money into getting it off the ground. Either way, whether you realize it or not, it’s absolutely essential that you create a business plan.
Now, there are many who think that business plans are just for start-ups looking to secure VC funding or for loan applications, but that’s a huge misconception. Regardless of whether you’re looking for funding or a loan, it’s important to have a roadmap to help guide you on your journey, a plan of action as it were, so the fact that they help with financing is just the cherry on top.
But what if you don’t know how to write a business plan? Well, if that’s the case, we’ve got some good news for you. Our team of MBA-qualified business plan writers have created a concise yet comprehensive step-by-step guide to help you get it done. So without further ado, let’s get straight to it!
Table of Contents
Define Your Products and Services
Whether you’re looking for funding or just need some clarity regarding your business’s potential future, defining your products and services is an essential first step. Think about the features you offer and the benefits they provide. Do they meet customer needs? How do they do that? Once you’ve gotten that down, there are three other areas you should focus on.
Unique Selling Proposition (USP)
No matter what product or service you offer, chances are that other people offer it as well. What sets you apart from your competitors? Do you provide faster delivery, more durable products, or superior customer service? Think about it and add it to your business plan.
Development Stage
What stage of development is your product in? Are you still brainstorming ideas, or do you have a prototype? Or are you ready for the market? The stage you’re at doesn’t necessarily affect your chances of securing funding, but it helps to be transparent.
Future Products or Services
Are you planning on launching any other products in the future? If so, include a timeline for their development and launch.
Want to learn how to use effective emotional triggers while describing your products? Check out this blog post!
Conduct Market Analysis
.A thorough market analysis can help you understand the playing field your business is about to enter. This section is where you identify market needs and opportunities, allowing you to position your business for success with data-driven decisions. There are a couple of important areas to consider here.
Target Market
Define your target market and the customer segments you plan to cater to. For example, if you’re writing a restaurant business plan, you might cater to families, diners looking for convenience, or health conscious customers.
Competitive Analysis
Who are your main competitors? Conduct a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis on them and do the same for yourself. How do you compare? Include all of this information in your custom business plan.
Develop Financial Projections
Perhaps the most important data investors will look at is your financial data. Now, this doesn’t mean attaching your bank statement to the business plan and calling it a day. You need to be much more specific in at least these four areas.
Revenue Projections
Take a look at your pricing strategy and expected sales volume based on market demand and extrapolate revenues for the next four quarters. This is especially important while developing an SBA business plan, which could help you obtain funding from the Small Business Administration.
Startup Costs and Operating Expenses
Much of your revenue will go towards meeting costs. Buying equipment, stocking inventory, purchasing licenses are all startup costs, whereas operating expenses include rent, salaries, utilities, and your marketing budget.
Financial Statements
Back your projections up by including income and cash flow statements along with a balance sheet.
Break-even Analysis
Based on the data you’ve collected, you’ll have a pretty good idea of when you might break even. Here’s a formula you can follow:
Sale Price Per Unit - Variable Cost Per Unit = Contribution Margin Per Unit
Once you have this number, use the following formula to calculate your break-even point in units:
Total Fixed Costs ÷ Contribution Margin Per Unit = Break Even Quantity in Units
Next, you find out how much revenue you need to break even with this formula:
Break Even Quantity x Selling Price Per Unit = Break Even Revenue
Compare this number with your sales forecast to get an idea of when you might break even. Investors usually want you to break even in 6 to 18 months, so consider reworking your strategy if you’re not meeting this requirement.
Create a Marketing and Sales Strategy
What must an entrepreneur do after creating a business plan? Why, sell your products of course! And since that’s going to be your prime concern, whether or not you receive funding, you should incorporate your marketing and sales strategy into your business plan.
Marketing Goals
There are a number of marketing goals you can prioritize in your future strategy. Do you intend to generate leads, acquire customers, or generate awareness? What channels do you intend to market on? Social media, email, content marketing, and paid advertising are just some of your options.
Sales Strategy
This is where you show your mastery of the sales funnel. Outline your customer journey and sales tactics, as well as promotional tactics like discounts, giveaways, and influencer partnerships. When in doubt, refer to a business plan template to see how it’s done!
Interested in learning a uniquely effective approach to marketing? Our blog post on the Academy Awards marketing strategy holds the answers!
Compile an Executive Summary
If you refer to a business plan template, you’ll notice that the very first page consists of an executive summary. Now, as far as actually writing a business plan is concerned, you should save it for the end. You need to actually do the research and create the plan before compiling it into a summary. Focus on these key areas when the time comes.
Business Overview
This is the first thing a potential investor will see when they open up your business plan, so you should clearly and succinctly describe what your business does. Don’t forget to add your values and mission statement if you have one!
Market Opportunity and Strategy
Write a summary of your market analysis. Describe your target market, highlight your USP, and briefly outline key tactics from your marketing and sales strategy.
Financial Highlights and Funding Requirements
Cover your financial projections succinctly before moving into arguably the most important part of your business plan: your funding request! Include the amount you need, where the funds will go, and your predicted return on investment.
Ace Your Business Plan With Our MBA Qualified Writers
While a business plan is undoubtedly the key to your success (it makes you 30% more likely to grow), it can also be a nightmare to write on your own. The good news is, our team of veteran business plan writers can take the weight off your shoulders, and not just when it comes to the actual writing process! Our services include market analysis, financial forecasting, and anything else you might need to create a solid business plan.
Whether you need a clear path forward for your business, a roadmap to launching a unique new idea, or if you’re just applying for an SBA loan, we’ve got you covered. We have over 15 years of experience in this space, and we’ve mastered the art of writing a business plan that drives results. Are you ready to join our ever-growing list of satisfied clients?
Contact CDP Today!
Reach out to us at (877) 897-1725 to learn more about our business plan writing services