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What is a business plan?
A business plan is a comprehensive document that describes your business, customers, competitors, company staff, services, financial standing, and every possible aspect of your enterprise.
It includes your vision statement, your intended objectives, and your strategy to achieve your goals within a set time frame. A full detailed business plan also delineates the links, contracts, and relations of your business with all the stakeholders.
For a better understanding of what a business plan is, you can see detailed business plan samples on our website. We are a business consulting firm that helps new startups to launch successfully. At Hospital, our experts work to develop a well-detailed business plan in any niche, in any part of the world.
Why do I need a business plan?
You had the money, so you hired the people, procured the equipment, rented an apartment, and thus, launched the startup. That is not how businesses work in real life. You might be able to start a business in this way but in the months that follow, you would encounter circumstances that demand quick and accurate decision-making.
For instance, you may see a new opportunity, but you wouldn’t know how much money you can put at stake for it. You may encounter an unexpected default but remain clueless about where to withdraw money from.
All such happenings and risks are common to each business. To ensure that all the activities of your business, even its getting into profit and loss are systemized, you should make a detailed business plan.
A detailed business plan will
- Ensure you can make the right decisions ahead of time
- Prove the viability of your startup
- Help your investors in knowing you
- Help you communicate with your customer groups
- Help you understand the broader market trends
- Enable you to ensure optimal use of available financial and human resources
What are the main purposes of a business plan?
A business cannot exist without a detailed business plan. The purpose behind detailed business plan preparation is the combination of the following:
3.1 Establishing the Business
For starting a business from scratch, you need a stepwise guide to ensure that you don’t miss anything. From setting standards for recruitment of staff to developing targeting Ads, all the minor and major aspects need a well-documented background.
3.2 Managing & Growing Existing Business
A detailed business plan template is required when you want to grow your business. For instance, if you are expanding your product line, you would need to plan how much you would charge for the new products and how many more employees would be required to meet the newer standards.
Note
Moreover, you would need to conduct a marketing analysis to identify if the new product is desirable or if the people in your vicinity possess the purchasing power to utilize the new service. New advertisement ideas would be needed, and finances would have to be adjusted in the same way.
This indicates that even a minor change or development in your startup requires detailed planning on several aspects. Due to the inter-dependence of all the factors, you cannot do the task without writing a detailed business plan.
3.3 Guiding through Critical Times
A detailed business plan outline acts as a decision-making tool whenever you encounter unexpected events. Those may be positive such as an opportunity to connect with another enterprise, as well as negative such as a sudden decline in demand for your products due to inflation or the introduction of advanced technology.
These unforeseen circumstances can be managed only if you have already done risk assessment and have devised ways to reduce risks. Your policy options in case of a default would be clear only if you have documented them in a business plan.
3.4 Acquiring Funding & Recognition
A written business plan is also needed to create a brand image. To get recognition in the business world and to get funding or loans, possessing a business plan is necessary.
3.5 Directing the Finances
Another purpose of a business plan is to ensure smooth and pre-determined transactions. Fiscal management and profit generation is the ultimate goal of a business. It can only be achieved via an accurate business plan.
The main points of the business plan
The main points that must be covered in a business plan are as follows:
- Executive Summary
- Company Summary
- Products & Services
- Market Analysis
- Personnel Plan
- Management Plan
- Operational Plan
- Sales Strategy
- Financial Plan
The components of a business plan are not fixed by any rule. You can customize your business plan as you want. You can also skip and add any sections as per your needs and the nature of the products.
Each of the main points is given in further detail in this blog on how to write a detailed business plan.
Executive summary
In your business plan, the executive summary should give a brief explanation of the business. It is written such that the reader instantly understand where your business is based and how your startup could be related to them. The executive summary also identifies the groups that are expected to buy from you. It elucidates your business goals that can be both social and monetary.
Moreover, the executive summary should briefly outline how you plan to manage all the internal and external parts of your business. It should explain how your activities will be linked to other businesses if your startup is B2B. It should also describe the management plan to serve your customers and incorporate their feedback in case your startup is B2C.
You can further study about executive summary by exploring the detailed business plan examples on our website. We have provided many a free detailed business plan template for existing business ranging from pure technical enterprises like a software house to common startups such as restaurants.
Company description
In this part, you have to give your readers an insight into who is the company owner, why the company owner decided to launch the startup, and how the company owner planned to launch the startup.
To describe how the startup is launched, you should
- Outline a stepwise procedure in which all the steps are clear and distinct.
- Explain how you would get or develop an accurate business plan for your business.
- Describe at which stage you would establish a web presence and market your startup via other means.
- Take down a timeline of when you would start recruitment and when you would start procuring equipment to physically initiate your company.
Products and services
A business plan is never complete unless it specifies the products or services you will be offering to your customers. Even if you are opening a startup whose services seem obvious, it is essential to still mention them.
For example, if you are starting a transport business you must specify whether you would provide services in rail transportation, road transportation, or air transportation. Even when you bring it down to let’s say road transportation, you have to decide if you would transport construction material, passengers, food items to resorts, or raw materials for industries.
At OGSCapital, we have provided detailed business plan examples in pdf and docs. You can quickly skim through any sample to get an idea of how specific you have to be in this section.
Market analysis
Market analysis is preferably started before you develop a detailed business plan. It comprises the following sections.
8.1 Studying the Market Trends
In this portion, you have to analyze the market trends for your business. It will help you identify which localities would be more preferable for you to launch your startup. Generally, markets that hold similar businesses are to be avoided unless you have some great competitive advantages.
At OGSCapital, you can see the general market trends for thousands of businesses of which we have provided detailed business plan pdfs.
8.2 Making Customer Segments
For this section, you must divide the entire population into distinct groups of target customers.
8.3 Defining Business Goals & Pricing Strategy
For the last part of the market analysis, you have to outline your business targets and set your pricing strategy according to the financial standing of your customers and your monetary goals.
Management team
This section should include two things:
- The no. of employees you will need with their respective qualifications
- Average salaries of your employees for at least 3 years
If you want to see management teams and their expected salaries in the U.S., you can also request a sample of a detailed business plan on any topic of your choice.
Operational plan
An operational plan provides a link between your business targets and the ways to achieve them. It finds practical means within the broad strategic plan to generate profits.
In simple terms, it is an extension of a business plan for a specified time such as one year. It goes into further details within your business plan to manage business operations more effectively.
At OGSCapital, you can see sample detailed business plans and operational plans for free.
Financial plan
As we explain the process of preparing a detailed business plan, you should identify that financial plan is the most important part of any detailed business plan. In your financial plan you should include the following evaluations for at least 3 years.
- Important Assumptions
- Break-even Analysis
- Projected Profit and Loss
- Profit Monthly
- Profit Yearly
- Gross Margin Monthly
- Gross Margin Yearly
- Projected Cash Flow
- Projected Balance Sheet
- Business Ratios
Get a Professional Business Plan Today!
If you are wondering how to get a perfect and accurate business plan, you have landed on the right page. At OGSCapital, we possess 15 years of industry experience in making business continuity plans.
Here are the 5 reasons why you should hire us.
1. Rated TOP4 by the Clutch
Our business consultancy firm is rated TOP4 by the Clutch rating for 2020.
2. Expertise Acknowledged by the Press
Our firm has been mentioned by reputable platforms including Reuters, Entrepreneur, HuffPost, and Inc.
3. High-Quality Market Research
We have a team of 60 professional business plan writers. Whatever your business is, we will carry out detailed market research and analysis for you to acquaint you with the latest trends.
4. Full Customization
We don’t use any pre-defined templates. Working with us, you will get an original and customized business plan.
5. Successful Clients in 42 Industries
Our business plan developers have helped our clients belonging to different industries earn more than $2.7 billion.
To get a full detailed business plan pdf for your business, you can visit our site. We also provide free detailed business plan templates as well as detailed business plan samples for some startups.
On our site, you can also explore how to make a detailed business plan and what to make sure before you look for how to create a detailed business plan.
To get quotation or enter a detailed business plan preparation contract with us, click here.
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