In one of our articles, we have explained to you about an amazing and useful document called business plan but since I have received some feedback on that article, Ives decided to write another article on this topic. Today I want to explain to you how you can write a Business plan in a very simple manner so here we go without any further explanation.
We have some key components in Business plan which you have to include them in your document and I will explain them one by one.
Executive Summary
It’s simply a brief overview of your business plan. You should think of your plan as a whole and avoid any lengthy explanation and try to go for a simple and short explanation for each topic here. Just think of this section like this: you are going for exploration and you lay down the map on the table, this summary is just like that map, you may see whole map but you won’t get all the details here.
Company Description
This one is extremely simple. Explain your company as a whole and if you don’t have a company then don’t worry and explain what your company will be in your image.
Problem
This is your first major part. If you can’t explain this part well then you will lose your audience attention for the rest of document. Explain the problem that you want to solve and then go on and talk about the service you will provide. Go for the need first and then go for solution. Many people skip this part and its very dangerous so goon
Solution
This part of Business plan has already covered in the previous section and it’s all about your solution for that particular problem. You have to be precise and explain it in a simple and yet complete way.
Market Size
This part is all about real deal of business. You have to explain how big your total addressable market is. If you can’t explain this then it means that you don’t know about your project well and this means that you need that you have to do more study about market and potential. You have to know how this market can grow and is it big enough to make investors excited. And finally you have to learn about existing businesses in this market to make this part complete.
Product
Ok, now you have the attention you want and you will explain about your product in this part of Business plan. They already know about the service it will give and this part will go in depth of product itself to give them more interest and let them have a clearer picture of what you are going to give to your customers.
Revenue Model
Every investor want to know that their money will return with profit and you have to be able to explain how your company will makes money. In order to address this part, first you need to give a detailed explanation about your pricing and to make this sensible, you should give investors some information on your rivals and existing products and their prices.
Operating Model
What business model you will follow? It may be obvious and simple for you but a potential investor should know about it if they want to give you their money so don’t neglect this part my friends because it is extremely important.
Competitive Analysis
Who is your rival? What they have as a market advantage over you? What is your competitive advantage? These are the main questions you have to answer here.
Customer Definition and Acquisition
Who will be your customer? What are their personas and where they reside? What are their motivation to buy this product and etc. on the other hand you have to explain that how you will get them to know about you and our product? You have to give a full strategy about your approach to these customers in order to get the investors trust.
Management Team
If you already have some people in your team hen give a small representation about their achievements and past but don’t make it to long.
Funding
How much money you need to go and make this idea happen? You have to give them some clear description in your Business plan and this is when you will get it or lose it so be precise and don’t ask for too much or too less. It consist your team and staff and production and marketing cost as well. Give as much detail as you can but in the end, give a complete summary of the amount you need.
