How to Write a Great Business Plan

Writing a great business plan is not only a necessary step when looking for financing for a project,but also a recognized management tool that traces exactly what your business will do and how it will succeed. Here, we will give you the niche on how to write a great business plan.

A business plan is the essential document for starting a business for several reasons.

Its objective is to help you formalize your project in order to present it to your loved ones and to potential investors.

Writing a great Business Plan

You have an idea for a business concept and you are in the process of writing a business plan. This is the true nightmare of entrepreneurs, it can frighten more than one!

This idea can make you lose your mind and all desire to undertake.

This document, is nevertheless essential to convince your future partners and other investors to finance your project, so you will not be able to escape the “business plan” box.

Do the words “business plan” make you shudder?

Don’t be afraid! We explain in a few steps how to make a business plan, with ease, ease and speed!

Follow these few steps, and get started with our complete application according to your sector of activity. Writing a great business plan will no longer hold any secrets for you. We put all the cards in your hands to guarantee success.

Thanks to our tools, writing your business plan has never been easier !

Some Definitions to Start With on Writing a Great Business Plan

A business plan language can sometimes seem hard. It can discourage or lead to misunderstanding and thus create difficulties in writing your business plan. We will offer you some definitions of words, sometimes poorly understood, to allow you to better tame them:

  • Business plan: This defines a document drawn up by the project leader presenting the objectives pursued as well as the financing needs in order to elicit the commitment of an investor capital or a bank.
  • Competitive advantage: it is an added value that the company has, which allows it to stand out positively vis-à-vis its competitors. This can be for example: price or quality.
  • Business to Business: it is the whole of the activities of a company aiming a trade with another company such as for example the purchases with a supplier.
  • Business to Consumer: it is when there is an act of transaction between a company and the end consumer.
  • Benchmarking: it is the evaluation of the most serious competing offers. The objective is to determine, analyze and appropriate the good practices of the most successful organizations.
  • Working capital requirement: this is the amount of money necessary to ensure the activity of the company, even if you do not sell, the working capital allows you to offset the charges.
  • Business Angel: it is when a natural person invests part of his money in a young company that he advises. Its main motivations are the search for capital gains or the desire to promote the emergence of the leading companies of tomorrow.
  • Crowdfunding: this is the raising of meager amount of money from large number of people to fund a venture, typically via internet.
  • Elevator pitch: this is an exercise which consists in briefly presenting your project to an investor for the time of a meeting in an elevator for example, hence the term “elevator pitch”.
  • Financial forecasting: it is a management tool that includes financial forecasts, generally over three years, illustrated with financial tables. It generally consists of three parts: a financing plan, a forecast income statement and a cash flow plan.
  • Threshold of profitability: it is the minimum turnover from which a product or an activity of a company, at a given cost, becomes profitable, that is to say that it begins to generate profits.
  • Executive Summary: this is a short text (2 pages maximum), an integral part of the business plan, which aims to summarize the business plan and give the interlocutors to read more. It is the same principle as the back cover of a book.

Questions to Ask Before You Begin Writing a Great Business Plan

It is important to take some time to ask yourself some questions. Do not dive head first into writing your business plan; you could drown yourself. Think, take the time, and think about your project and where you want to take it.
The idea is there but is it the best? Is it adapted to the market?

To take stock of all this, ask yourself the right questions.

First

You must be sure you have sufficient knowledge of your market . For that, here is a list of questions not to be overlooked:

  • What is the size of the market you are targeting? Local, national, global?
  • How many customers do you plan to attract?
  • What is the state of the market?
  • Who are the major players in the market?
  • Is your activity a Business to Business or Business to Customer activity?
  • What are the expectations of the market you are targeting?
  • What is the purchasing behavior of your future customers?
  • What are the benefits of your product / service for your customers?
  • Have you identified any competitors? Who are they ? Direct, indirect?
  • How are market prices evolving?
  • What are the relationships with the various players in your sector of activity?
  • Are there any regulations or standards to be observed? What are the costs?
  • Who are or will be your suppliers?

After answering these few questions, you are presented with two scenarios:

  • Case number 1: you do not perfectly master all aspects of your activity, but your offer is original, innovative and in line with the expectations of the market in which you wish to launch. Get started!
  • Case number 2: Your offer seems similar to other offers, but these offers are currently buzzing and you like these concepts. The prices in this market are low and the market is very competitive. Don’t get started, it’s a risky bet.

 Secondly

You have the right profile to put  the odds of success on your side . For that, here is a list of questions not to be overlooked:

  • What experience do you have in business management?
  • Do you have manager training?
  • Do you have the support of your loved ones in this adventure?
  • Do you have a large network of acquaintances?
  • Have you gone through an organization or association for entrepreneurial support?
  • Are you aware of the financial risks that starting a business involve?
  • Do you currently have sufficient resources to embark on the adventure and maintain yourself for some time without income?

After answering these few questions, you are presented with two scenarios.

  • Case number 1: business management has no secrets for you, you have the soul of a business manager, you are not afraid to make decisions. You are aware that you are likely to work a lot and not earn as much money as you would like. Get started!
  • Case number 2: You are afraid of not being able to provide for yourself, making decisions will make you anxious and you have never led a team. You value your usual holidays and weekends and do not intend to sacrifice them. Being an entrepreneur may not be the best fit for you. Don’t get started, it’s a risky bet.

 Thirdly

You must be certain that  your commercial and marketing strategies are perfect  ! For that, here is a list of questions not to be overlooked:

  • Do you know your future customers?
  • What are your market segments?
  • Is your target defined?
  • By what commercial means can you achieve your financial goals?
  • Have you put in place a marketing plan, a sales pitch?
  • Have you perfected the organization of your sales force?
  • Have you implemented back-planning?
  • Do you have marketing knowledge?
  • What is your communication plan? How much will it cost?

After answering these few questions, you are presented with two scenarios:

  • Case number 1: You already know the purchasing behavior and consumption habits of your future customers, you have defined the number of sellers that you will need. Your communication plan is ready. Get started!
  • Case number 2: Your product is a great idea, but you don’t know how, when, or even who to sell it to. Try to get help from someone with business knowledge or experience! Don’t go it alone, it’s a risky bet.

 Lastly

You must be able to find funding for your project . For that, here is a list of questions not to be overlooked:

  • How much do you need to finance your project, globally?
  • What is the breakdown between your equity and your debt?
  • What are your cash flow needs?
  • How long will it take to collect customers? Can you get payment terms from suppliers?
  • What is your estimated amount?
  • When will you break even?

After answering these few questions, you are presented with two scenarios:

  • Case number 1: You don’t need to invest a lot of money to start your project, you have the necessary equity and you already have investors ready to invest in your business. Get started!
  • Case number 2: You have trouble finding the necessary funding and your project requires large funding. You don’t have a lot of equity. Don’t go it alone, it’s a risky bet.

Read Also: Biggest Financial Mistakes Most Entrepreneurs Make

Talk About Your Project around You

Many people find THE IDEA but do not dare to talk about it. For multiple reasons, they make this mistake. Go ahead and make the trailer for your concept!
Indeed, do not hesitate to talk about your idea, to share it with others. Also, don’t be afraid to talk about your idea, on the contrary, ask those around you for their opinion: family, friends, and acquaintances.

The latter will give you their impressions of your future business and will surely raise some lines of research still unexplored or perhaps even some criticisms which will prove to be very constructive. You should, however, be open to discussion and divergent opinions of yours. If you do not listen to the criticisms or remarks which will be made to you, your customers will point them out to you one day but it will be too late. It is therefore important to learn to listen to others, because even if your idea seems perfect to you, it may not be.

The fear that the idea will be stolen from them is also a major obstacle that prevents entrepreneurs from talking about their business plan concept. But you should always keep in mind that if you reveal your idea in the open, no one can steal your concept, only you know how to carry it out, when, how and by what means. You can also protect it by filing a patent . Therein lies the strength of your concept: YOU and the way you bring it to life, make it emerge and make a simple idea a great success .

Start Collecting Information

Before starting your business plan, it is important to collect information. The purpose of this collection is to deepen your knowledge about the market you are targeting. Nowadays, and luckily, it is now very easy to find the information you are looking for with a magic tool: INTERNET.
Don’t get carried away with too much information. Select the information you need and retain the most relevant. Over-information can ultimately lead to misinformation.

Your research will be focused as follows:

  • General: about the market, the sector, the product / service;
  • Competition: identification of competitors, their strategy and their positioning;
  • Sales and marketing: the techniques used, new practices, traps to avoid, strategies to set up;
  • Technical: infrastructure, necessary facilities, available locations;
  • Partners: available suppliers, commercial and financial partners;
  • Financing: the costs of your future activity, the key figures of the sector, the aid you can benefit from.

Write the Business Plan

Finally, this is the last step. This writing is very important for the success of your project, this is the reason why you must put the odds on your side.

For that, we put at your disposal our free and easy to use tool. Our site westentrepreneur.com offers wide knowledge suite specially designed for entrepreneurs. We are entrepreneurship specialists and our application will put all the keys to success in your hands. Take advantage of our site and get ready to launch your business plan.

 

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