You cannot launch your startup without a business plan, you cannot grow without a business plan and you cannot have the foundations of your startup well sited without a defined business plan. So, it’s worth investing in this document that in addition to allowing you to establish the objectives of your company, can also detail its structure, an opening budget, operation and publicity, define the amount of investment you need to finance your project and establish some solutions to solve possible future problems among other aspects!
Writing a business plan is essential to seek funding, partners or investors and serves as a guide for those in charge of the company.
Well, pay attention because in this post we explain ‘step by step’ how to write an excellent business plan.
Why should you write a business plan?
Here are six reasons why every startup should write a good business plan before launching their project:
- The business plan will serve as a roadmap for strategic analysis.
- It allows you to know the sector and the competition.
- It helps you check the internal coherence of the project.
- You study the technical and economic viability of the project.
- It facilitates the communication of the idea to possible investors, partners, clients.
- It serves as the medium to see the future in the short term.
Now, then, we explain how to write an effective business plan, and the steps to write a great business plan. Here’s what every successful business plan should include for entrepreneurs to work in the same direction, able to take their startup to reach success more easily, take note!
1. Executive summary
At this point, you should review the most important aspects that you will include in the business plan. Remember that with this first point you will have to be able to capture the attention and interest of the future investors.
2. Product/service description
This is where you will have to perfectly explain the product or service that you will offer: its concept, origin of the idea and main characteristics. Once, those interested already know what you offer, you must specify towards what target audience it is directed, why and the needs that it will satisfy for them.
3. Market analysis and competition
This point is key to your business plan. In this, you will analyze, on one hand, the market in which the product will be introduced, its size, the factors of success that characterize it, what barriers to entry exist, what is its evolution and natural growth, its consequent rhythm and current trends.
4. Business model
Here you will define the business model and the financial plan, which will detail financial agreements, the central portfolio of products or services that the organization offers and introduce the actions necessary to achieve the strategic goals and objectives, among other relevant aspects.
5. Description of the team and corporate themes
It is essential to describe the human team that forms the startup. Investors give great importance to this point to check if these entrepreneurs are able to carry out the business correctly. Regarding the corporate issues, it is necessary to explain the company’s social and commercial name, its corporate purpose, the name of the founders, the share capital, specify the administrative bodies that the company has and what obligations towards its partnership with Public Administrations.
6. State of business development
It is important to specify here in which phase or state the product currently in. If a test has been carried out (application of the Lean Startup methodology) or if a developed prototype exists, etc.
7. Marketing strategies
At this point, you will begin by detailing the decisions about actions and resources to use both online and offline, which will allow you to achieve the final objectives of the company or organization, as well as specify if you are going to work with any communication, advertising or online marketing consulting.
8. Contingency plan
As with any new project that is launched, risks are always there and you have to account for them. Therefore, it is important that you take them into account and put them on the table in this document, in this way the potential investors and partners will be able to know from the start what the risks could be that they would face.
Writing a business plan is crucial but it’s not easy to do. We hope these steps set you on the right path to writing a well-thought-out business plan.
Otherwise, there are a lot of professional writing services (e.g. AdvancedWriters) which provide people with high-quality customized business plans written in a strict accordance with customer’ requirements.