Wednesday, September 26, 2012

How to Develop a Business Plan

Whenever I have come across the profiles of the most successful businessmen, I have always marveled at the business acumen of these businessmen. I wonder what was it that made them so successful and rule the world? Was it the business plan, the sheer passion, grit or determination or that germ for business? I feel even if they had the making of a businessman and had that passion and all, a major chunk of credit to their success goes to the business idea they thought of. Another thing is the way these people developed the business plan. Here in this article, I will tell you how to develop one yourself.

Developing a Business Plan

It is not exactly an easy proposition, developing a business plan, as there are innumerable things involved in it, from the very basic things to extremely complicated and tedious ones. Basically, while creating a business plan, you should include an executive summary involving -
  • A brief description of the history of the company.
  • The company's objectives
  • Description of the company's products or services.
  • The market the business intends to compete in.
  • A persuasive statement as to reasons and method for the success of the business.
  • Projected growth for the company and the market.
  • Mention of the core management team.
  • A description of funding requirements, with a time-line and the usage of the funds.
Homework on the Service or Product
Forget the business plan for sometime. Decide what is the product or service you are going to offer. Without that, it is impossible to go ahead and consider what comes next in your business proposal. Research on the market trends and what are the products and services which will be a hit with the consumers is fundamental with regards to understanding the intricacies of developing a business plan. If you have had an experience in product or a service, then your task just might become easier. In addition to this, also think of the name and the overall profile of your company. Have a thorough understanding of the products and services your company is going to offer.

Money Matters
Once you are done with the overall profile, think of the capital required for it as well as how much you intend to make from it or can make. To be clear about that you will have to chalk out and create a financial profile of the company. When you mention this while writing the plan, it should include your current assets, your liabilities, projected income and monthly expenses within a range of six months. Having all this data will help you establish a viable financial objective for your business. Be very careful about this.

Who are the Competitors?
The market is going to be like a big bad world out there. Therefore, you also would need to study your competitors and how you propose to deal with competition and what gives you an edge over them. You will have to mention that while writing a business plan. Again, this will involve a little bit of homework.

Finally, once you are done with all these things, put all this on paper. Tackle the points mentioned above and elaborate them as per the research and statistics you have got. Make it as crystal clear as you can and get started!

At the end of the day, just pray and hope that the financier gives you an appointment and agrees to help you out with the funds. If you are still skeptical about how to make a business plan, have a professional do it for you! All the best!
By Medha Godbole

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