Most people think that they understand how to write a business plan. This may or may not be true and here is the reason why. Writing a business plan is no simple task. After you spend some time coming up with the business you want to venture into, next comes writing a plan for the business. There is the correct format that your business plan should have and it is often advisable to divide your business plan into sub-sections. This way, you will get to understand what each section is tackling or handling without compromising on the quality of the business plan through repetition. The first chapter of a business plan is the executive summary. An executive summary of a business details what really the business is all about and the industry that the business will be in. In most cases, most students or entrepreneurs bury the purpose of the business in subsequent pages but be sure to state or given the reader what your business is all about. After writing down an executive summary, you need to give a business description.
A business description analyzes the business industry that you intend to venture into as well as looking at future opportunities and possibilities in the industry. You should be able to look at various market parameters, product development and business survival in the said industry. The next chapter in a business plan is marketing strategies. Developing a product or a service is one thing while marketing the same product or service is another. The marketing strategies details how you intend to market your product to potential clients and ensure maximum sales. Under this section, you must look at the target market for your product based on age, gender, class, religion etc. In addition, you must detail or write down the marketing strategies that you intend to apply in your business to ensure maximum sales. The other section in a business plan is the competitive analysis or the competitor analysis.
In the practical world, people have great business ideas but end up venturing in a very competitive industry and eventually get edged out of the business. This is why it is important to analyze the nature of competition in the target industry, whether there are barriers to entry into the market and things such as government red tape. When writing a business plan, another chapter that is very important is the design and development chapter. Under this chapter, describe the product or service you intend to venture in. Give all the important details regarding your product such as design, product description, handling etc. In addition to this, create a development chart that will give a clear indication of your product or service and probably give an indication of the growth potential of your product. The operations management chapter contains how the functions and processes in your business will be carried out.
For large businesses, there are specific departments that handle specific operations with regards to the business. For smaller businesses though, you can harmonize your operations to one central department. You can also add information with respect to management of the business, assigning tasks and how the staff will be reporting and to whom. The last section of a business plan is the financial factor segment. This section briefly gives a detailed analysis of resource allocation, minimum capital, how the capital will be raised, the amount to be allocated to various departments and how finances will be managed in the business.