How to Quickly Create a Solid Business Plan

I often see the mistake by corporate department executives thinking of a business plan as a document you just put together and then set aside. Because, writing a business plan may seem like a big hurdle, but it doesn’t have to be. I will give you a guide. First, here are few good reasons to use a business plan:

• To test the feasibility of your business idea. A business plan is to test whether an idea is feasible. In this sense, the business plan is your safety net. If working through a business plan reveals that your business idea is untenable, it will save you a great deal of time and money.
• Give the best chance of success. A business plan will ensure that you pay attention to the broad operational, management and financial objectives of your new business and the small details, such as budgeting and market planning.
• To secure funding. Most new businesses ideas need operating capital to get off the ground. Without a well-developed business plan, there is normally no chance of getting debt financing from established financial institutions or buy-in from top management.
• Grow your business faster. Writing a business plan is about establishing a foundation. You’re not predicting the future; you’re working through the core strategy of your business that will help you grow. 
• Track progress. Without a business plan as a baseline, it will be far more difficult to track your progress, make adjustments, and have historical information readily available to reference when making difficult decisions. 
• Make confident strategic decisions. Having business plan that you’re regularly reviewing, you can make confident decisions. You’ll have all the information necessary to know when you can hire new employees, launch a new product or make a major purchase. At the same time, you can also plan ahead in case a decision doesn’t work out as expected, minimizing your potential risk.

Simple way to write the business plan

The business plan should prove the case that your idea makes sense. It should flesh out strategic plans, develop marketing and sales plans, create the foundation for smooth operations, or persuade an investor. Here a guide and content in a quick business plan:

1. Executive Summary, 2. Overview and Objectives, 3. Products or Services, 4. Market Opportunities, 5. Sales and Marketing, 6. Competitive Analysis, 7. Operations, 8. Management Team, 9. Financial Analysis

1. Executive Summary

The Executive Summary is a brief outline of the company's purpose and goals. Often the make-or-break section. If your Summary cannot describe in one page, how your business will solve a particular problem or make a profit, then it's very possible the opportunity does not exist. Include therefore:

• A brief description of products or services
• A summary of objectives
• A description of the market
• A high-level justification for viability (including a look at your competition)
• Short on growth potential
• An overview of funding requirements

2. Overview and Objectives

If you already manage an existing business, summarizing your current operation. For what to come, think about what products and services you will provide, what you need to have in order to provide those items, and most important, whom you will provide those items to:

Key questions to answer in the business plan:

• Who is my average customer? Who am I targeting? 
• How will I overcome that paint point?
• Where will I fail to solve a customer problem, and what can I do to overcome that issue? 
• Where will I locate my business?
• What products, services, and equipment do I need to run my business?
• What skills do my employees need, and how many do I need?
• How will I beat my competition?
• How can I differentiate myself from my competition in the eyes of my customers?

3. Products and Services

Describe the products and services your business will provide, but no detailed or technical descriptions. Use simple terms and avoid industry buzzwords. Describe how the company's products and services will differ from the competition .

Key questions to answer in the business plan:

• Are products or services in development or existing?
• What is the timeline for bringing new products and services to market?
• What makes your products or services different? Are there competitive advantages or disadvantages?
• Will your operating costs be low enough to allow a reasonable profit margin?
• How will you acquire your products? Are you the manufacturer? Do you purchase products from suppliers or wholesalers? 

4. Market Opportunities

A business plan evaluates customer demographics, purchasing habits, buying cycles, and willingness to new products and services. The process starts with understanding the opportunities. What is the size of the market and is it growing, stable, or in decline? What segment of the market are planned to target? What behaviors make up the market are the demand for the products and services rising or falling? Can I differentiate myself from the competition in a way customers will find meaningful and what do customers expect to pay? 

Key questions to answer in the business plan:

• What is your market? Include geographic descriptions, target demographics, and company profiles?
• What segment of your market will you focus on? What percentage do you hope to acquire?
• What is the size of your intended market? What are the spending habits and levels?
• Why do customers need and why will they be willing to purchase your products and services?
• Will you be the low-cost provider or provide value-added services at higher prices?
• Is your market likely to grow? How much and why?
• How can you increase your market share over time?

5. Sales and Marketing

Customers need to know those products and services exist. Here are some of the basic steps in creating your marketing plan:

1. Who will you target? Who makes the decisions? Determine how to reach potential customers.
2. What does competition do that works well? What are their weaknesses? 
3. How customers perceive your business makes a dramatic impact on sales. 
4. What problems do you solve? What benefits do you deliver? 
5. How will you compete in terms of price, product, or service?

Key questions to answer in the business plan:

• What is your budget for sales and marketing efforts? 
• How will you determine if your initial marketing efforts are successful? In what ways will you adapt if your initial efforts do not succeed?
• Will you need sales representatives (inside or external) to promote your products?
• Can you set up public relations activities to help market your business?

6. Competitive Analysis

Understanding the strengths and weaknesses of your competition is critical for the business survives and grows. Once you identify your main competitors, answer these questions about each one. And be objective. It's easy to identify weaknesses in your competition, but not to recognize how they can outperform you:

Key questions to answer in the business plan:

• What are their strengths and weaknesses and can you take advantage of the?
• What are their basic objectives? Do they seek to gain market share? What are they trying to achieve?
• What marketing strategies do they use? Look at their advertising, public relations, etc.
• Who are my current competitors? What is their market share?
• What market do current competitors target and wow can you take market share away from their business?
• Are competing businesses growing or scaling back their operations? What does that mean for your business?
• How will your company be different from the competition? What competitor weaknesses can you exploit? What competitor strengths will you need to overcome
• How will competion respond when you enter the market? What will you do if competitors drop out of the marketplace and what will you do if new competitors enter the marketplace?    

7. Operations

This keeps your cost in line. The key areas your plan should address in short:

Location and Facility Management: Zoning requirement, The type of building and space you need, Power and utility requirements, Access: Customers, parking, suppliers, shipping, etc, Specialized construction or renovations and Interior and exterior remodeling and preparation

Daily Operations: Production and Service method, Inventory control, Sales and customer service, Receiving and Delivery, Maintenance, cleaning, and re-stocking

Legal: Licenses and permits, Environmental or health regulations, Patents, trademarks, and copyrights and Insurance

Personnel Requirements: Staffing and skills required, Recruiting and retention, Training, Policies and procedures, Pay structures

Inventory: Anticipated inventory levels, Turnover rate, Lead times and Seasonal fluctuations in demand

Suppliers: Major suppliers, Back-up suppliers and contingency plans and Credit and payment policies

Key questions to answer in the business plan:

• What facilities, equipment, and supplies do you need?
• What is your organizational structure? Who is responsible for which aspects of the business?
• Is research and development required, either during start up or as an ongoing operation? If so, how will you accomplish this task?
• What are your initial staffing needs? When and how will you add staff?
• How will you establish business relationships with vendors and suppliers? How will those relationships impact your day-to-day operations?
• How will your operations change as the company grows? What steps will you take to cut costs if the company initially does not perform up to expectations?

8. Management Team

Investors feel the experience of the management is one of the important factors used to evaluate the potential of a business. The Management Team section will not only benefit people who read your plan. It will also help evaluate the experiences your management team will need. Addressing your company's needs will make a major impact on your chances for success.

Key questions to answer in the business plan:

• Who are the key leaders or the type of people needed? Experiences, educational backgrounds, and skills?
• Do your key leaders have industry experience? If not, what experience do they bring to the business that is applicable?
• What duties will each position perform int the organization (by chart) What responsibilities are expected in each position?
• What salary levels will be required?

9. Financial Analysis

Financials tells you whether the business has a chance of being viable. Include at least five basic reports:

1. Balance Sheet: Describes the company cash position including assets, liabilities, shareholders, and earnings retained to fund future operations or to serve as funding for expansion and growth. It indicates the financial health of a business.
2. Income Statement: This report lists projected revenue and expenses. It shows if a company will be profitable during a given time period.
3. Cash Flow Statement: Cash receipts and expense payments. It shows how and when cash will flow through the business.
4. Operating Budget: A breakdown of income and expenses; provides a guide for how the company will operate.
5. Break-Even Analysis: A projection of the revenue required to cover all fixed and variable expenses. Shows when, under specific conditions, a business can expect to become profitable.

Appendix?

Some business plans include information in an Appendix section. Creating an Appendix is usually only necessary if you're seeking financing:

• Resumes of key leaders
• Additional descriptions of products and services
• Legal agreements
• Organizational charts
• Examples of marketing and advertising collateral
• Photographs of potential facilities, products, etc.
• Backup for market research or competitive analysis
• Additional financial documents or projections

Hope the above can support your effort – good luck and don’t give up!

See also related article:

• “How to make a 100-day-plan” – click here