In this article, I detailed reasons why it is important to have a well detailed business plan guiding your business. It is important to have a detailed business plan because the business plan is the roadmap to the final destination you have in mind for your business. Your plan will determine if you are on the right track or not and will guide you in times you feel lost in your business ventures.
A perfect business plan needs to cover some important aspects. A business plan must be able to capture your company vision attractively and accurately.
Here is the breakdown of details that must be included in your business plan to make it attractive and easy to follow.
1. Executive Summary
The executive summary is always on the first page of your business plan. This explains the business mission statement. It gives insight into the business goals. It is also a detailed description of the goods, services or products the company offers. It also gives a summary of the plan and vision of the company.
Your summary should also include every important detail about your business. Investors at times only look through executive summary to decide whether to invest in a business or not.
2. Company Description.
This shows an overview of key aspects of your business. Things like; what you do and what makes your business unique. Anyone reading your business description should have no problem understanding the scope of your business.
Your business’s mission statement as well as the vision statement should be captured in your company’s description as this will be visible to the public view.
There might be need to regularly update your company description as your business expands or changes, so factor this into consideration.
3. Objective Statement or Business Goals
This is an explanation of company goals, including what the company would like to achieve and the overall ideals of the organization.
Take for instance your set objectives are to improve customer service, enhance worker productivity and increase profits. Now, for each objective statement, there needs to be an inclusion of detailed information about how the company plans to achieve those business goals.
4. Business and Management Structure
This section should describe your management team, staff, resources, and how your business ownership is structured, i.e. sole proprietorship, partnership, etc.
This section should not only describe who is on your management team but how each person’s skill set will contribute to your company’s vision statement.
5. Products and Services
The products and services page of your business plan is where you do most of the work. It includes details of the service and product you are offering and the problem your products and the problem you are solving. It also shows the relevance of your products in the existing market.
An effective product and service page includes the following;
• A description of the problem your product and service solves, how your product and service is providing solutions to it and how your product is better than existing products.
• Outline your competition. How competitive is your marketing? How are your competition better than you? What are your advantages over other businesses offering the same services?
• Outline your competitive advantage and how you can take full advantage of it to improve your business.
• Explain the target audience and marketing strategies.
• Illustrate your milestones and metrics. Milestones are specific stages in the development of your business. It is used to determine your next step and evaluate the business target. It also helps you measure your business growth.
6. Marketing and Sales Plan
This page includes a detailed explanation of your sales plans and strategies and how you plan on achieving it. It also includes how to sell to customers, your target market, and your prices and how to develop a relationship with customers that will build customer loyalty.
It also includes business logistics and marketplace plans.
This section can also highlight your marketing strengths and focus on improving sales.
7. Financial Analysis and Projection
The financial section of a business plan, basically should include a sales forecast, expenses budget, cash flow statement, balance sheet, and a profit and loss statement. This forecast allows you to anticipate the revenues and expenses of your new business over a given period.
Financial projections use existing or estimated financial data to forecast a business’s future income and expenses. They often include different scenarios so that you can see how changes to one aspect of your finances (e.g. higher sales or lower operating expenses) might affect your profitability.
Conclusively, understand that the simplest reason to create a business plan is to help people unfamiliar with your business to understand it at a quick glance.
While the most obvious use for a document like this is for financing purposes, a business plan can also help you attract the ideal team, likewise help your existing employees understand their roles.
Writing down your business plan, goals and the state of your finances helps clarify the dots that aren’t connecting in your own mind. From there, you can more easily lead your business because you’ll know whether the business is reaching the checkpoints you set out to begin with. You’ll be able to foresee difficulties before they pop up and be able to make adjustments quickly where necessary.
