Easy steps to write a Business Plan

The business plan is essential in launching a new venture. If anyone wis

h to start his/her own venture he/she must have an effective business plan. Business plan is a written document that describes all the relevant external and internal elements involved in starting a new venture. It is like a road map which guides an entrepreneur in every step.

To write an effective business plan is not an easy task. Business plan could take hundreds of hours to prepare, depending on the experience and knowledge of the entrepreneur as well as the purpose it is intended to serve. Business plan should be comprehensive enough to give any potential investor a complete picture and understanding of the new venture.

Following are the important ingredients of any business plan –

1- Introductory page- This is the title page that provides a brief summary of business plan contents. The introductory page should contain
a. The name and address of the company.
b. The name of entrepreneurs, telephone number, fax number, e-mail address, website address etc.
c. A paragraph describing the company and the nature of the business.
d. The amount of financing needed.
e. A statement of the confidentiality of the report.

2- Executive summary – This section of the business plan is prepared after the total plan is written. This is very important section of the business plan. Generally the executive summary should address a number of question like-
a. What is the business concept or model?
b. How is this business concept or model unique?
c. Who are the individual starting this business?
d. How will they make money and how much?

3- Environmental and industry analysis - This section should assess and identify the trends and changes occurring on a national and international level that may impact the new venture. For example – economy, culture, technology, legal concerns, industry demand, competitions etc.

4- Description of venture- It should provide the complete overview of products, services, operations etc. This section should start with the mission statement or business description.

5- Production plan – If the venture is a manufacturing operation, a production plan is necessary. This plan should describe the complete manufacturing process. This section should have layout of the production process, needed equipment, raw materials, suppliers of the materials, cost of product manufacturing, storage etc.

6- Operation plan- This section goes beyond the manufacturing process and describes the flow of goods and services from production to the customer. It might include inventory or storage of manufactured products, shipping, inventory control procedure, and customer support service.

7- Marketing plan- The marketing plan is an important part of the business plan. It describes how the products or services will be distributed, priced, and promoted.

8- Organizational plan- Organizational plan describes the venture’s form of ownership- that is proprietorship, partnership, or corporation. If the venture is partnership, the term of partnership should be included. If the venture is a corporation, it should include the detail of the shares of stock authorized, share options, as well as names, address, and resumes of the directors and officers of the corporation.

9- Financial plan- It describes the key financial data that determines economic feasibility and necessary financial investment. It should include pro forma income statement, cash flow projection, pro forma balance sheet, break-even analysis, and source and applications of funds.

10- Appendix- This is the last section of the business plan. The appendix of the business plan generally contains any backup material that is not necessary in the text of the document. Letters from the customers, distributers, or subcontractors, are the example of information that should be included in the appendix.

Business plan may be read by employees, investors, bankers, venture capitalists, suppliers, customers, advisors, and consultants so a Business plan must try to satisfy the needs of everyone. If your business plan is effective then it will be easy to get fund for your business.