Before proceeding to the description of sections, we will say that there is no specific technique of writing a business plan, adopted as a standard. In each case, it is individual. The main thing is not to complicate the process and make it understandable for you and your potential investors. Let us start with a structure of your startup project.
The purpose of the resume is to make a positive impression on investors and give a general description of the business plan as a whole. The resume should not be long, its optimum size is 2 to 4 pages.
There should be only the most important things:
- The specialization of the company;
- The target markets and place the company on them;
- Profitability and ROI;
- The staff and the responsible persons;
- The predicted quantitative and qualitative indicators as an outcome of work periods.
The section “Resume” plan should give answers to the two main questions:
- What will investors get from a successful implementation of the project?
- What are the chances of losing assets or part of an unfavorable development of events?
Resume writing should be done at the very end, when the main part of the business plan is already written.
Here you can see some free business plan samples.
Description of Goods and Services
Describe the goods and services you aim to sell.
To do this, make sure that you can provide:
- a description of the main products (services) of the company;
- pictures of your products;
- a portrait of your ideal customer;
- market analysis for similar products or services at your target market;
- a plan of service management (if it is required by the specifics of your company);
- a description of price range;
- a single detailed table of your goods (services) according to the parameters that are given above.
After this investigation, you will be positive about what and for whom you produce your items.
Market Analysis and Marketing Strategy
Who is your customer and what is their place on the market? You need to know it.
Marketing is one of the most important business processes.
It includes an analysis of the market environment, competitors, and strategies to promote your product (service) in the current environment.
To most accurately prescribe a marketing section, answer the following questions:
- In what market conditions will your company work?
- What kind of competition can be identified in your sphere?
- What methods of promotion do your competitors use?
- What promotion tools do you want to use? (Maybe they are advertising, direct sales, merchandising, sales promotion, etc.).
- Why has the consumer to choose your product?
- Is there seasonality in your startup and if yes, when is it?
All these questions need to be answered in written form.
Finally, be sure to make a quarterly sales plan in order to understand how much of the revenue and net income your business could bring.
The main thing is not to raise the bar of supposed sales.
The Production Plan
This is only for startups that deal with direct material production. This section can be skipped if your company intends to provide services or sell goods.
If your company is aimed at dealing with the production of goods, in this section you will need to answer the following questions:
- How much production capacity do you need?
- In what order will the equipment be deployed and ready for work?
- What is the expected dynamics of the increase in the production over time?
- How will the necessary materials be delivered to the place of production, and who will be a supplier of raw materials? It is necessary to describe and characterize the logistics of your suppliers.
- How will the production process look like? Here, it is desirable to make a visual diagram with explanations (it can be taken out in an appendix to the business plan).
The Organizational Plan
This section should reflect your actions in the management of business, broken down into concrete steps with timelines for each stage.
It is best to do it in the form of a table with following names of the columns:
- The name of the stage.
- Terms of realization.
- The responsible person.
- Expected outcomes and notes.
Here you should write what to do at the very beginning, and later, i.e. and algorithm.
The Financial Plan (The Budget)
In this part of the startup plan, you compose a detailed budget. That is, you plan your expenses in detail. It is better to form it as a table.
One-time costs include the purchase of equipment or facilities, advertisement campaigns and so on. In the accounting terminology, such long-lived assets of the company are also called fixed assets. Periodic costs include supplies, raw materials, rent, utilities, salaries, purchase of goods. In the accounting terminology, such fast-consumed assets of the company are also called working capital.
After filling the table, you will need to calculate the breakeven point.
The Breakeven Point
The breakeven point is the minimum size of sales of goods or services of your company in which all the costs of the business organization for a certain period will be covered by the proceeds of the business, and every next sale will generate a net income.
The depreciation is the transfer of part of the cost of the equipment on the product or service that is produced by it.
That is, if you are a hairdresser and buy a hair clipper for 60$, so with each haircut, its value will decrease due to its wear and tear. The cost of such depreciation will be included in the cost of each haircut with the help of this machine, for example, 5$.
Do not forget to include the recurrent costs. Then you will have a real picture of your business expenses.
The Expected Outcomes and Prospects (The Final Part)
Here you can see several scenarios to your startup, from pessimistic to optimistic ones.
Basing on the anticipated financial outcomes, summarize the entire business plan and take a comprehensive and impartial look at your project.
What do you see? Do you understand it? If you were an investor asked to invest in a company on the basis of such a business plan, would you agree?
If you answer yes to this questions – congratulations! You have a pretty good opportunity for a successful outcome of your startup.
Now, following this plan, begin to act!
We have examined the model of writing a startup plan for a small startup.
For large projects, it is better to seek for experts to develop a business plan, because, as you know, if you buy cheaply, you pay dearly.
So, if you have a large multi-million-dollar project, it is better to pay a small part of this amount to professionals who will write you a detailed and competent business plan.
Dear readers, we hope that this article was beneficial for you. You are advised to look find out how to plan your business. We wish you good luck with your projects!