Creating a business plan should be one of the first things every business owner does. A business plan conveys a company’s goals. It also shares the timeline, finances, and methods that will be used to reach the goals of the company. Not taking the time to create a business plan can be detrimental to the success of any company. In this article, we strive to explain how to create a business plan with a step-by-step process for creating it. If you are finding you need assistance creating your business plan, don’t hesitate to reach out to the team at Centify. We are here to help!
How to Create a Business Plan
There isn’t really a wrong way to create a business plan. But there are things you can do wrong if you happen to take a few shortcuts along the way. We don’t recommend choosing the shortcut route. It only leads to major issues later. Instead, follow the guidelines that state what should be included in your business plan.
All business plans should include product goals and deadlines, as well as balance sheet projections for the first couple of years. Any company that is reworking its business plan should also include monthly financials and profit and loss statements.
Before you start to think you don’t need a business plan, let us share that all business plans help with the following:
- Outlines your business’s goals and finances
- Determines your company’s viability
- Determines your company’s profitability
- Attracts investors
- Creates an effective strategy for company growth
Now that you know why you need to create a business plan for your company, let’s get started on how to actually do it.
Steps for Creating a Business Plan
Generally, there are 10 steps for creating a business plan. Your company may require a little more information, so keep that in mind when writing your business plan.
- Executive Summary
The executive summary should always be the first section of your business plan. In this section of your plan, you should address the vision and mission of your company. This is also the time to list your company’s short and long-term goals.
- Description of Your Business
Everyone is going to want to know your business’s industry, plus the need your business fills. This is the time to define the realm, scope, and intent of your company.
- Market Analysis
Have you analyzed the market to make sure you understand your company’s niche? And to make sure you are fulfilling a need?
If you have, then this is the time to use that information to state who your ideal customer is. You should also state what your ideal customer values.
If you haven’t analyzed the market yet, you must complete that task before finalizing this section of your business plan.
- Competitive Analysis
You must analyze more than the market when you are starting a business. You should also analyze your competition. In this step of your business plan, you need to write down who your competitors are.
Other important information to note is what your competitors do best and what your unique value proposition is going to be.
- Organizational Management Description
This step includes an overview of your team members. Be specific by listing their roles and responsibilities. If you have a team structure or a hierarchy, make sure to include it in this section of your business plan.
- Products or Services Description
Defining your products and services in your business plan will help your business be successful. You should list how each product is produced, as well as what resources were used during that process.
- Marketing Strategy
Every business needs a marketing strategy. If you are just opening your business, you may struggle with this part of creating your business plan. Thankfully, you don’t need a concrete marketing plan right away.
Instead, determine your target market and what channels you will use to reach that market. Add in what resources you will need to accomplish your marketing goal and whether you have access to those resources.
It is a good idea to include an estimate of your budget and timeline, as well as how you will measure the success of your marketing too.
- Sales Plan
One of the biggest parts of your business plan is your sales plan. Again, this does not need to be in-depth. However, it should include your sales strategy and the tools and tactics you will use to achieve your goals.
Listing potential obstacles and how you will overcome those obstacles is helpful. As is having a timeline for turning a profit and how you will measure your success.
- Funding Details
Every business needs funding, whether you have it already or need to request it. During this step of your business plan, you should state how much capital you currently have and how much you need.
This is also the time to determine how you will grow your team and whether you will have any types of constraints when it comes to reaching your goals.
- Financial Projections
Investors always prefer to see financial projections that have been well-thought out. You don’t need to have exact figures for this step. But you should be able to know how and when your company will first generate a profit.
You should also know how your company will maintain that profit in the future.
These are the 10 steps for creating a business plan. They are not difficult, but they can be time-consuming if you are not sure what to put in each section. If you need help creating your business plan, reach out to us today. We would be more than happy to set up a meeting to show you how we can help you with your business.
