How to Write a Business Plan for Your Startup

Do you have plans to launch a new startup? Have you put much thought into a business plan or discussed this with your business partners? Writing a business plan is extremely important for your new start-up, as it will determine if your business will succeed in this competitive business world. Many business advisors, bankers, experienced entrepreneurs, and investors generally agree that you should develop a business plan in order to keep you on track during the first stages of development.

Preparing a business plan is like outlining an itinerary for a trip. It does not have to be overly detailed, but shouldn’t be too simplistic either. You don’t have to add a lot of cash flows statements or numbers to the business plan, but instead, you would need to have a simple orientation plan stating how it is going to be achieved, where you want to go, and the potential and market competition for your startup.

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A business plan is a written description of your business’s future and a document that outlines a plan for your short-term and long-term goals. You have to demonstrate a bright, objective map that you can follow step by step while developing your business. It often makes sense to begin rather basic, and then add more details as you prepare to approach investors.

Need to know how to write a business plan? Look no further! This article will explain how to outline a business plan, the important sections and a brief description of each part to help you stay organized and to guide you through the process.

Here are seven basic questions that you should include, from the most basic to the most sophisticated, before starting a new business.

1. Describe your Objectives and Mission

  • What are you set to change with your invention and work?
  • What makes your company’s product or service different from all the rest in the market?
  • What do you need to run your business?
  • Who will benefit from your business?
  • What are the leverages and tradeoffs you want to give your clients, and under which implications and circumstances?
  • What is the problem you are solving for your clients?

2. Market Analysis

  • Is there a viable market for the product or service you want to sell?
  • Does your ideal customer live in a certain type of area?
  • Are you limiting your reach geographically, demographically or in any other way?
  • Will only wealthy people be able to afford it?

Once you can figure out the answers to these questions, you will have a functional market analysis, which will help you become familiar with all aspects of the market. With the target market defined, the company will be positioned to capture more market share.

3. Explain your Startups Cost

The first months are the most difficult for a new company. Always include more in your forecast than your real numbers. Summarize each statement in a few easy-to-understand sentences, such as projected financial statements, including income statements, monthly cash flow, balance sheets, and annual cash flow statements in your business plan.

4. Understand the Competition

  • Who is your competition?
  • Where are your main competitors?
  • What is their differentiation strategy?
  • How much do they charge for a similar product or service?

5. Products and Services Portfolio

6. Management and Operational Plans

7. Marketing and Sales Channels

But most business owners do not realize the importance of choosing the right sales channels for their offers. So it is always advisable to select the right sales channels according to your business requirements. The significant difference between choosing among resellers, distributors, and representatives can affect your operational plans. Be sure to check these regularly, so you can avoid finding out when the business is already in trouble.

Consider the following to include in your business plan, under the marketing section.

  • How large will your promotional budget be?
  • What type of advertisements or promotions will you use?
  • Will you create a logo and use it on cards, letterhead, websites, and others?
  • How often will you use paid promotions?
  • What other non-paid advertisements will you use? For example, will you use social media or professional networks?

Conclusion

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