Sunday, March 24, 2019

HOW TO WRITE THE PERFECT BUSINESS PLAN


Having a business idea, and the capital to start running the business is just but a step in becoming a successful business.

Every business needs a plane. And having a perfect business plan sets you on the path to success.

In this post, we will look at steps to follow in writing a perfect business plan.
So what is a business plan?

A business plan is a written document that describes and analyzes your business and gives detailed projection about its future, it also covers the financial aspect of starting or expanding your business.

Some benefits of having a business plan includes:

·         It helps you get money to start or expand your business.
·         It helps you improve on your business concept.
·         It helps you improve your chances for success.
·         It helps you stay focus and remain on track.
·         It helps you take note of issues that can lead to success or failure in your business.

These are just a couple of the benefits of writing a business plan for your business.
Now let’s look at the structure of a business plan:

·         Cover page: this page carries information like, company name, company address, company phone number (including area code), company logo, names, titles, address and phone (including area code) of owners, month and year in which the plan is issued, and name of preparer.

·         Mission statement or executive summary: this page explains the nature of your business and its legal structure, the amount and purpose of your loan request and a plan for repayment.

·         The business: this is the major section of your plan that cover details of your business, it should be a summary addressing the key elements of your business.

·         Legal structure: this page states the reason for your choice of legal structure, whether you are a sole proprietor you may include a copy of your business license. If you have formed a partnership, include the copy of partnership agreement in the document. In case of a corporation, explain why this legal form was chosen and reasons why the company will operate within the corporate structure.

·         Business description: this is the section where you need to explain your business in great details. The business history, current status, and your future projections, you should outline the status, inventory size and the rate of turnover.

·         Products or Services: a very detailed description of your products, starting from the raw materials you use to the finished item. What is the cost for this raw materials, who are your suppliers, their location and why them?

·         Management: this section tells who is behind the business, in case of a sole proprietor, mention your abilities and include your resume. Where you may need help, indicate and mention if you will employ someone or you will be taking some courses.

·         Personnel: describe in details, who will be doing the work, how will they be hired, what is their wage? And their job description, and if you have a plan for increasing personnel.

·         How records are kept: this is where you need to describe the system of accounting to be used and why the system. In your accounting what portion will you do internally, and do you intend hiring an external accountant?

·         Insurance/security: as a business, you need to consider insurance. Insurance is simply the coverage you provide for your business. Clearly state what coverage you have, why you choose it, and the time period it covers. Always remember to keep your insurance information up to date.

Now that you have covered all the areas in the business section, next is developing the marketing section.

That we will look at in the next post.           

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