How to Write a Business Plan | Bplans.com

Summary

This guide from Bplans.com walks you through the essential components of writing a business plan. It covers the executive summary, problem and solution, target market and competition, marketing and sales strategy, operations, and financial planning. The script emphasizes the importance of a clear plan to address real customer problems, understand competition, and create a roadmap for growth. It also highlights the need for measurable goals, risk management, and financial projections to attract investors or secure funding. The video offers actionable tips and encourages downloading a free business plan template to get started.

Takeaways

• 😀 Start with the executive summary: A concise overview of your business in one or two pages. Write it last, after completing the rest of the plan.
• 😀 Clearly define the problem your business addresses and explain how your product or service offers a solution. Use a relatable customer story.
• 😀 Be specific when defining your target market. Focus on your ideal customers, not a broad demographic, and include relevant demographic information.
• 😀 Understand your competition: Every business has competition. Highlight what makes you different and how you'll gain a competitive edge.
• 😀 Include a marketing and sales plan that covers pricing, promotion, advertising, and strategies to reach your target audience.
• 😀 The operations section should explain how you will deliver your product or service. Detail the technology or facilities required, and your production process.
• 😀 Set measurable milestones and metrics. Define key goals and how you'll track success, including any initial traction or progress.
• 😀 Address assumptions and risks. Show lenders and investors that you've thought through potential challenges and have a plan for mitigation.
• 😀 Highlight your team and company overview. Showcase the skills and experience of your key team members or your plan to recruit the right talent.
• 😀 Include a financial plan with sales forecasts, profit and loss statements, cash flow, and balance sheets. Also, explain how you'll use any investment funds and outline an exit strategy.
• 😀 A well-written business plan is essential for business growth, investment, and securing loans. It helps clarify your strategy and direction, and supports decision-making.

Q & A

Why is the executive summary usually written last, even though it's the first section of the business plan?

The executive summary is written last because it pulls key pieces from all the other sections of the business plan. By writing it last, you can ensure it accurately reflects the content and main points from the rest of the plan.

What should be included in the problem and solution section of a business plan?

In the problem and solution section, you should describe a real problem faced by your target market and explain how your business provides a solution. It's helpful to tell a story about a specific customer to make the problem and solution more relatable.

How can you define your target market effectively in a business plan?

To define your target market effectively, you need to be specific. Include demographic information and focus on the segment of the population most likely to benefit from your product or service. For example, instead of targeting everyone with feet if selling shoes, narrow it down to specific groups like athletic shoe buyers or fashion-conscious individuals.

What is the importance of analyzing your competition in a business plan?

Analyzing competition helps identify what differentiates your business from others in the market. It allows you to highlight your competitive advantage and develop strategies to attract customers. Understanding the competition is crucial for positioning your business successfully.

What should be included in the marketing and sales plan section?

In the marketing and sales plan section, you should outline your pricing strategy, promotional efforts, advertising tactics, and any other methods you'll use to reach your target audience and generate sales. The goal is to show how you will attract and retain customers.

What are the key components of the operations plan?

The operations plan should detail how you will deliver your product or service. This includes the technology or infrastructure needed, how you'll manufacture your product (if applicable), where and how you'll produce it, and how you will ensure consistent quality and timely delivery.

How do you set measurable milestones and metrics in a business plan?

Milestones and metrics should be specific, measurable, and tied to the key goals of your business. They should outline when and how you plan to reach specific objectives (e.g., revenue targets, market share, customer acquisition) and the metrics you will use to measure progress (e.g., sales numbers, website traffic).

What role do assumptions and risks play in a business plan?

Assumptions and risks demonstrate that you've thought through potential challenges and have strategies in place to address them. Investors and lenders want to know that you understand the risks involved and have a plan for mitigating them, ensuring the long-term viability of your business.

Why is the team and company overview section important?

The team and company overview section gives potential investors or lenders confidence that you have the right people in place to execute the business plan. It should showcase the experience, skills, and qualifications of key team members, as well as any plans to expand or improve the team as the business grows.

What financial documents should be included in a business plan's financial section?

The financial section should include a realistic sales forecast, a profit and loss statement, a cash flow statement, and a balance sheet. If seeking investment, you should also explain how the funds will be used and outline an exit strategy for investors.