How to Write a Business Plan? Step-by-Step Guide for 2022
Summary
TLDRIn this informative video, Mike Plogger from Visme guides aspiring entrepreneurs on crafting an effective business plan. He emphasizes the importance of a business plan for setting realistic goals, staying organized, reducing risk, and securing investment. The video outlines eight essential steps for creating a business plan, which include developing an executive summary, company description, market analysis, competitive analysis, product or service overview, financial plan, marketing strategy, and showcasing the team. Plogger also highlights the significance of using data visualizations to simplify financial figures and make the plan more digestible for readers. Additionally, he shares that Visme offers customizable templates for business plans and pitch decks, tailored to various industries, to help businesses present their ideas professionally and persuasively.
Takeaways
- 📝 Start with a business plan to outline your goals, objectives, audience, and more for a comprehensive understanding of your business idea.
- 🎯 A business plan helps set realistic goals and milestones, making it easier to achieve them by breaking down into actionable steps.
- 📈 Stay organized and grow your business faster; studies show that businesses with a plan grow 30% faster than those without.
- 🛡️ Reduce risks by identifying potential obstacles through a well-thought-out business plan.
- 💰 Attract investors with a professional and serious business plan that can make or break funding opportunities.
- 🧐 Begin the business plan with an executive summary, which is a concise overview of your entire plan.
- 🏢 Include a company description, mission statement, and objectives to define your business and its direction.
- 🔍 Conduct thorough market research to understand the market size, target demographic, demand, and competitive advantages.
- 🤝 Analyze your competition to understand their strengths and weaknesses, and how you can differentiate your business.
- 💼 Outline your products or services clearly, ensuring the language is accessible to a wide audience.
- 📊 Create a detailed financial plan including sales forecasts, balance sheets, income statements, operating budgets, and cash flow statements.
- 📈 Use data visualizations to simplify financial figures and make them more understandable for potential investors.
- 📣 Develop a marketing strategy that identifies the channels and demographics most likely to engage with your business.
- 👥 Showcase your team and their expertise to build trust and confidence in your business's ability to succeed.
Q & A
What is the primary purpose of a business plan?
-A business plan is a document that outlines a company's goals and objectives, target market, competition, products or services, financial forecasts, and marketing strategies. It serves as a roadmap for the business and is crucial for securing investment, staying organized, reducing risk, and growing the business.
Why is it recommended to write the executive summary after completing the rest of the business plan?
-Writing the executive summary after the rest of the business plan is completed ensures that it accurately summarizes the entire plan. It provides a quick understanding of the business for readers, highlighting the key points and objectives of the company.
What should be included in the company description section of a business plan?
-The company description should include the company's history, an overview of the business, a mission statement, and both short-term and long-term objectives. It should concisely explain what the company does and why it was started.
How does market research contribute to a business plan?
-Market research is essential for understanding the target market, its size, growth trends, and the specific demographic to be targeted. It also helps in identifying the demand for the product or service, the advantages over competitors, and the pricing strategy of competitors.
What are the key components of a competitive analysis in a business plan?
-A competitive analysis should include profiles of direct competitors, their strengths and weaknesses, the marketing tactics they use, and potential future competitors. It should also highlight the company's competitive advantage and strategies for entering the market.
How should the products or services section of a business plan be presented?
-The products or services section should clearly outline what the company plans to offer, using language that is easily understood by all readers. It can be a simple list or a more detailed description, depending on the complexity of the offerings.
Why is the financial plan a critical part of a business plan?
-The financial plan is crucial as it provides potential investors or co-founders with a detailed view of the company's financial forecasts, including sales projections, balance sheets, income statements, operating budgets, and cash flow statements. It is a key determinant of the company's financial health and viability.
What are the five essential components of a financial plan in a business plan?
-The five essential components of a financial plan are: a sales forecast, a balance sheet, an income statement or profit and loss statement, an operating budget, and cash flow statements.
How can data visualizations help in presenting the financial plan?
-Data visualizations simplify complex financial figures and make them more accessible and understandable for readers. They can effectively communicate the company's financial position, sales forecasts, and other financial metrics in a clear and concise manner.
What is the role of the marketing strategy in a business plan?
-The marketing strategy outlines the channels through which the company will primarily market itself. It should consider the competition's marketing channels, the demographics of the target audience, and the most effective ways to reach and influence potential customers.
Why is showcasing the team important in a business plan?
-Showcasing the team helps investors and stakeholders understand who is driving the company forward. It builds trust and confidence in the company's ability to execute its business plan and achieve its objectives.
How can Visme help in creating a business plan?
-Visme provides customizable templates for business plans and pitch decks that can be tailored to fit various industries and business needs. These templates include pre-made designs that can be easily edited with the company's colors, images, fonts, and more, making the process of creating a professional and visually appealing business plan more accessible.
Outlines
📝 Crafting an Effective Business Plan
The first paragraph introduces the importance of starting a business with a well-crafted business plan. It emphasizes that while many talk about their ideas, the speaker is here to help turn those ideas into a business. The paragraph outlines the necessity of a business plan, what it is, and what it should contain. It also mentions the availability of templates to simplify the process. The speaker, Mike Plogger, highlights the business plan's role in setting realistic goals, staying organized, reducing risk, and impressing potential investors. The paragraph concludes by introducing the eight steps to writing a business plan, starting with the executive summary.
🏢 Understanding Your Business and Market
The second paragraph delves into the specifics of what a business plan encompasses. It covers the company description, including history, mission statement, and objectives. The paragraph also stresses the importance of market research to understand the target market's size, growth, and demographic. It discusses conducting a competitive analysis, identifying direct and potential competitors, and understanding their strengths and weaknesses. The section on products or services outlines what the business offers and how it is presented to ensure universal understanding. The financial plan is described as a critical component, including sales forecast, balance sheet, income statement, operating budget, and cash flow statements, with an emphasis on the use of data visualizations for clarity.
📈 Financial Planning and Marketing Strategies
The third paragraph focuses on the financial planning aspect of a business plan, detailing the components that make up a robust financial plan. It also touches on the marketing strategy, advising on selecting the right channels to reach the target audience. The paragraph advises against listing every possible marketing method without necessity, advocating for a concise and targeted approach. The final step discussed is showcasing the team behind the business, which can instill confidence in investors. The paragraph concludes with a call to action for viewers to like the video and subscribe to the channel for more helpful content, and a reminder of the availability of business plan templates on Visme for various industries.
Mindmap
Keywords
💡Business Plan
💡Executive Summary
💡Company Description
💡Market Research
💡Competitive Analysis
💡Products and Services
💡Financial Plan
💡Marketing Strategy
💡Team
💡Data Visualization
💡Investment
Highlights
Starting a business requires a business plan to set realistic goals and milestones.
A business plan helps to stay organized and grow the business faster.
Companies with a business plan grew 30 percent faster than those without one, according to the Journal of Business Venturing.
A well-crafted business plan can reduce risks by providing a clear roadmap to potential obstacles.
Investors are more likely to fund businesses with a solid business plan.
The business plan should not only contain words but also images, infographics, and other visual elements.
The executive summary should be written last, after the rest of the business plan is complete.
The company description should include a mission statement and both short and long-term objectives.
Conduct thorough market research to understand the market size, growth, and target demographic.
Identify direct and potential future competitors and analyze their strengths and weaknesses.
Outline the products or services offered in a way that is easily understandable to all readers.
The financial plan is crucial and should include a sales forecast, balance sheet, income statement, operating budget, and cash flow statements.
Data visualizations are essential for simplifying financial figures and making them accessible to readers.
Identify primary marketing channels, considering both competition and target demographics.
Create a profile of a typical customer and how they are most often reached or influenced.
Introduce your team to build trust and confidence in investors and stakeholders.
Visme provides customizable templates for business plans and pitch decks to fit various needs.
Use pre-made templates and edit them with your own colors, images, fonts, and more for a professional look.
Templates are available for different industries, making it easier to create an impactful business plan.
Transcripts
you want to start a business and you've
been advised to start with a business
plan that's great the only problem is
you have no idea where to begin don't
worry you've come to the right place
[Applause]
[Music]
hello world mike plogger here again with
visme to help you conquer the universe
or to help you grow your business
through design and marketing expertise
either way today we're going to help you
devise an effective business plan while
a lot of people simply talk about their
great ideas you're different you're
ready to take the next step to sharing
your idea with the world and turn it
into a true business the first thing
you're going to need is a business plan
what is this exactly why is it necessary
what should you include in your business
plan all great questions that i'll
answer for you here shortly and for
those of you who are looking for a
shortcut i'll even share some templates
you can use that'll make your life a
whole lot easier shall we
now before we hop into our eight steps i
do want to take a quick moment just to
highlight what a business plan is for
those of you who are unfamiliar in the
simplest of terms it's putting a
business idea on paper and looking at it
from a bird's eye view so if you have an
idea for a unique coffee shop i don't
just mean writing out coffee shop you
need to dig into your goals objectives
your audience your products
characteristics and so much more sure
you can start with your business name
but this will end up being a multi-page
document that should make any reader not
only believe in your idea but in you and
please whatever you do don't make it
consist of only words and facts a
business plan should consist of images
infographics colors shapes and more as
we see here with our first visme
template
there's four reasons why a well thought
out and well-written business plan is
important you may think all of this is a
waste of time and you can just run with
your idea but i don't encourage you take
that route for starters a business plan
can help set realistic goals and
milestones by putting these on paper
it's easier to understand what needs to
be done in order to accomplish them sure
you want a hundred thousand dollars in
sales your first year but what steps are
you going to take to reach that writing
out one big goal without these small
steps to reach it can often make that
goal feel unobtainable
another reason is a business plan helps
you stay organized in turn growing your
business faster a study published by the
journal of business venturing found that
companies or individuals with a business
plan grew 30 percent faster than those
that winged it a business plan will also
help you reduce risk by writing a
roadmap you'll be able to see potential
obstacles more clearly and lastly if
you're not sold yet perhaps the biggest
reason a business plan is important is
because it can be the difference in an
investor giving you funds or not if
you're looking for help whether from a
friend family member or one of those
people on shark tank a business plan
will go a long way even if it's not read
immediately it'll make you appear more
professional and serious about your
ideas and while we're here to discuss
and share business plan ideas there's
pitch deck templates on visme.com as
well just like our business plans
they're fully customizable to fit your
needs and make any investor want to put
their money on
you now getting into our eight steps for
writing a business plan the first is to
consider your executive summary this is
essentially the cliff notes version of
your plan as a whole it's meant to give
readers a quick understanding of your
business and what's to come in the
following pages so rather than write
this right off the bat i actually
recommend writing the rest of your plan
first then revisiting this at the end so
you can sum up what's to follow
to help an executive summary should
consist of your objectives market
research competitor information your
products and services a financial plan a
value proposition and of course how
you're going to get started here's a
template that visme provides for this
purpose it states who they are what they
do who their target audience is what
value they bring how they differentiate
themselves and it's all in two short
paragraphs with a sleek design
[Music]
the following section of your business
plan is your company description here
you can provide a company history if you
have one or just an overview if you are
a younger company also be sure to
include a mission statement and any
objectives you have both short and long
term with the mission statement simply
answer the question why you started the
company again this doesn't need to be
long-winded it could be a single
sentence a paragraph or even a personal
quote like we have in our example to
create the event of your dreams
intriguing your objectives are your
goals what are you setting out to
achieve in a month how about in a year
or even five years for that matter and
your overview it speaks for itself
quickly describe who your company is and
what it does
understanding how your business will fit
into its target market is key in being
able to predict if it can succeed or not
that's why it's our third step and
another component of a business plan
you'll want to spend lots of time
conducting research to show readers you
have something great on horizon what are
some things to consider
how about the market size and if it's
grown or shrunk in the past couple years
what segment of the market do you plan
on marketing to is there a specific
demographic that you want to target
what's the demand for your product or
service and how do you have an advantage
over the competitors and what's the cost
of those competitors products or
services assuming you don't have a
groundbreaking idea
write these down over one or two pages
once you've put in the time and research
then throw it into a template like this
one a few short paragraphs followed by
bulleted facts and statistics
emphasizing your research
[Music]
all right hopefully you're not tired of
the research just yet because step four
is when you want to dive into your
competition with a competitive analysis
start by compiling profiles on your
direct competitors these could be those
with products or services most similar
to yours or maybe it's those that are
closest in proximity to you
write down their strengths what are they
doing well that you admire and want to
emulate then write down their weaknesses
what could they be doing better that
leaves open an opportunity then consider
what marketing tactics that they're
using are they using social media are
they using mostly print-based marketing
like newspapers magazines and billboards
maybe they're advertising through radio
note these things next you'll want to
identify any potential future
competitors if your company could take
on different products or services in the
future once you have all of that
information compiled and organized it's
time to put it into a document for your
business plan it can be one to two pages
and may look something like this it
should break down your competitive
advantage and emphasize how you plan on
breaking into the market
your fifth step should be outlining the
products or services that you plan to
offer this can be a quick list as we
have in our latest example here or you
can dive into it a little bit deeper
just use language that all will
understand there may be big words that
only your industry understands so try to
dumb it down if you will so any reader
will comprehend what you're selling
[Music]
perhaps the most daunting section of
putting together your business plan is
your financial plan this is going to
take some time and it should this is the
section that potential investors or
co-founders will consider very heavily
every financial plan should consist of
these five things the first a sales
forecast how much do you predict your
company will sell in the next year or
two don't just write down a number break
it down explaining each product or
service you offer and how you've arrived
at that number the second is a balance
sheet this is a statement of your
company's current financial position
note existing assets liabilities and
equity to give an overview on your
current positioning
third is an income statement or a profit
and loss statement this will examine
whether your company will be profitable
or not by covering all profits and
expenses
fourth is your operating budget how does
your income stack up against your
expenses how much money is your company
making versus spending and lastly you'll
want to include any cash flow statements
this will track how much cash your
company has at any given point
regardless of whether or not customers
have paid their bills now with all that
said i can't emphasize enough the
importance of using data visualizations
for some of these figures writing all of
this down into a word document is
overwhelming and confusing for a reader
data visualizations can simplify your
numbers and allow readers to understand
them with ease
[Music]
so you've sold the fact that you have a
great idea and it makes sense for
potential investors and there's money to
be made here now it's time to actually
sell your business decide which channels
you want to primarily market your
company through considering the channels
that your competition markets to is a
good place to start but don't stop there
think of the demographics you're hoping
to reach create a profile of what a
typical customer looks like and how
they're most often reached or influenced
then simply create a bulleted list it
can be shorter with details or longer
covering a wider range of marketing
avenues just be prepared to speak on
each item's behalf don't throw in social
media blogs emails postcards newsletters
billboards handouts videos digital ads
just because there's enough room for it
on one page keep it short and necessary
[Music]
your last step is to show off your team
you're leading the charge but who do you
have behind you that's going to drive
this company forward this will again
help any investors feel better about
riding with you and it's also another
opportunity to create an infographic i
know i get a little bit excited when
there's a chance to do so and that's
because i know how simple and fun it is
to do envis me you might see an
infographic like this and think yeah
there's no chance i can ever do that by
myself but that's just incorrect bismi
allows you to start with pre-made
templates just like this and then edit
it with your colors images fonts and
more you can download them straight to
your computer in a hair resolution image
and you are done in minutes and want to
know a little secret we don't have
templates for just individual graphics
and pages we have templates for entire
business plans if you're in real estate
we have a business plan for you maybe
you're in consulting and you have a big
presentation coming up we have a
business plan for you are you a generic
startup looking for those investors to
get your company going visme has the
templates for that too
we have an entire collection of business
plan templates that were specifically
designed with different industries in
mind forget the word documents it's time
to blow your readers away with a
business plan built for today
so without further ado it is time for
you to get started but before you do i
do ask that you so kindly hit that like
button for this video and hey if you
haven't already try subscribing to our
channel we love to produce helpful
workplace videos just like this one and
who knows maybe our next video could
help you too thank you so much for
watching with visme i'm mike plogger
helping you
make information beautiful
[Music]
you
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