National Write a Business Plan Month
What is a Business Plan?
A business plan is a document that highlights a company’s goals and strategies they use. Startups need it to draw in their costumes, and established companies need it to keep growing and meeting their growth objectives.
What is the Origin of Business Plans?
Though the first business plans were probably written thousands of years ago by Ancient Summarians, the credit for the modern day business plans is given to Pierre Samuel, Sieur du Pont de Nemours.
Before leaving France in 1799, Samuel and his son wrote many letters to investors explaining how their business would work. This gave the expected positive results, since they managed to secure their investors.
Understanding Business Plans
New companies should have a business plan before they even begin working. Even if a company doesn’t need any additional funding or investors, it is still beneficial to stay focused and outline what the goals are. According to studies and research, companies with plans grow 30% faster than companies without a business plan. Companies with a business plan also are more likely to achieve viability by 16%.
Common Elements of Business Plans
Executive Summary: This introduces the company’s mission statement, as well as facts about leadership, employees, locations, etc.
Products and Services: Describes the services the company offers or plans to offer. Includes details on pricing, manufacturing, etc.
Market Analysis: Explains the industry and how the company fits into the industry. Explains the customers the company plans to target.
Marketing Strategy: Explains how the company plans to attract customers as well as future marketing and publicity strategies.
Financial Plans and Projections: Established businesses should include balance sheets, financial statements, and other relevant financial information. New companies should include estimates for how the company will do in the next few years.
Types of Business Plans
There are two types of business plans:
Traditional Business Plans: These are very detailed and lengthy plans, which can take more time to create, but they are more helpful to persuade future investors.
Lean Startup Business Plans: These are shorter, typically one page long business plans. They focus on key details only, and while they save time, the company needs to be ready to provide more information and details if the investors ask for it.
How to Write a Business Plan
There are many ways to write a business plan, but generally, you want to avoid producing one that looks too generic. Try to make the business plan reflect the unique personality and traits of the company, try to make a trademark.
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