Things That Must be in a Business Plan
the business plan is the initial stage that should be carried out by a prospective entrepreneur or entrepreneur. The following is an example of a business plan and things that must exist in a business plan or business plan.
Definition of a Business Plan or Business Plan
A business plan or business plan is a formal and written statement about the goals of a business and how to achieve that goal. In fact, many people fail to make a business plan while doing business. Some people believe that what’s important about a business is just running it.
But the road without a plan is an unwise act. Can a business plan or business plan guarantee that the business will succeed? Of course, there is no certainty.
So why do we have to make a business plan? Some reasons why we need a business plan are:
a business plan can be a blueprint for your business. Which company will be created has what purpose (vision)? How do you achieve that goal? Who are the team members involved? When can a business begin to fulfill its objectives?
Here are 8 reasons, you need to make a business plan or business plan:
Business clarity to be done.
Get to know the structure and strategy of the company.
Get detailed explanations about the market.
Know how to market a business.
Exploring ideas or initial thoughts.
Test business calculations.
Sharpen the operational system.
Get to know competitors
Sources of funding
Sources of funding from third parties such as banking, investors or venture capital require written documents to find out the business to be made. Therefore the first challenge of a prospective entrepreneur is to create a business plan that sells.
There are many versions that explain business and business plans. One of them is the opinion of Garret Sutton.
Garret Sutton is an expert in business law and author of The ABC’s of Writing Winning Business Plan. He stated that “Business is a plan, not a product or procedure.”
Business planning must answer 3 important questions for investors or creditors:
Can I make money by investing in this business? This question wants to try to convince investors or creditors about risk and returns if they invest in our business.
Do I like and understand the business where I invest?
Do I trust the people I invest in?
Communicate with All Shareholders
It could be that in the business that we create, it involves several parties, for example, there are several business partners. Therefore, a business plan can be used to provide the same perception regarding business.
Basics of a Business Plan or Business Plan
What needs to be written or must be in a business plan or business plan. Following this, the author will include several things that must be there. A detailed explanation of each section will be discussed in the next article.
how to write a business plan
The executive summary tells about what business will be made, vision and mission, business objectives. Simply put this part is the conclusion part of a business plan or business plan. One trick for making a business plan or selling business plan is to make an executive summary that sells.
The company’s background tells the story of company data, people behind our business, organizational structure, consultants or experts who accompany, the composition of shareholders (valid if the business is incorporated as a Limited Liability Company).
Market Analysis and Marketing
Market analysis and marketing tell us about our strategies for marketing products. In follow up, people usually use a marketing plan to explain distillations or marketing strategies.
Production analysis explains our business operating system. For example, our business is a type of production or manufacturing, it is necessary to know how the process of receiving orders, production, distribution of goods and collection. If your business is a service business, you have to write clearly how you distribute services to buyers.
Human Resource Analysis
Analysis of human resources tells the people needed from competence, the number of people needed. The development plan for human resources. For some prospective entrepreneurs, this part is usually underestimated, but this is one of the determinants of speed in business.
The financial analysis contains projections (forecasting or forecasting) of income and expenses, return on capital (break event point), return on investment (return on investment), calculation of leverage and other uses.
Business Development Plan
The business development plan is one part that is seen as important for an investor. Prospective investors will see how much effort we will make. This includes the exit strategy of our business.
Business risks are matters related to risks to our business, such as operational risk, business risk, liquidity risk or financial risk and others. Business risk does not only stop risk identification, but also our strategy to deal with or reduce the impact of these risks.
Before starting a business, take the time to write or make a business plan. Based on personal experience, when we write a business plan, we will know how much we want to make a winner and mental readiness to own our own business.