A business plan is a written document which shows the overall plan to the outer world of the business as well as gives guidelines to the businessman about how he will continue his business in the future to maximize his profits to the highest as well as survive in the competition with the competitors.
Here are several tips to make a business plan
Define your company
First, you need to define your company properly in your business plan. What business you do, who is your customer, where you will start your business and what is your business vision mission and goal? Everything should be defined clearly to the business plan. Or the plan won’t be a lucrative plan to attract the investors to your business.
The customer also needs the description of your business properly to get the idea about your product as they are the boss of your business.
Whether the price is lower than the others or whether they are providing the product with better quality than the competitors should be learned by the customer as they have to choose between others and your products.
Put Your Audience First
The business plan is written for your audience actually as to make them interested in your business to invest or lend you money in case of need for money.
The employees are maybe your audience who need to know the business’s as they are the internal customer and they need to know the company’s overall information for their better future. Whenever you are making a business plan, make sure that the plan satisfies the needs of your audience.
As the audience will invest or lend you money, their satisfaction is the main reason for your business plan.
Keep Your Business Plan Brief
Your plan may be made for answering the questions of the investors, so it needs to provide all the basic information which are required by the investors. But the business plan should not be made oversized than the standard size as you don’t need to answer all the question, all you need to do is to answer the basic questions which are must to make a business plan.
The plan will only cover the main points of the business, interest of the investors showing that you are fully aware of them and you are emphasizing on their interest.
You should remain as much realistic as you can while you are making the business plan.
You should never make a plan which will not consider the overall future strength and weakness of the business by supposing that you will be too much efficient in the business process. So you need to be as much realistic as you can.
Sell, but Don’t Oversell
Your business plan will be used to attract the investors and the lenders to your business which is selling your business to the investors. So it should be appealing to the investors as well as to the lenders.
The plan should be used to attract the audience who are interested to invest, but it shouldn’t just overestimating the business to the audience by giving false information.
Don’t underestimate Your Competition
Often businessman state that their product is unique and they don’t have any competitors. Which is a big mistake are one by the businessman? Even your substitute products can be your competitors. So never underestimate your competitors.
There may be many competitors of same type products or even substitute products. And there will be a high chance of entering into the market. So you should never underestimate your competitors by telling them we don’t have any rivals.
You should remain as much conservative as you can while you are making the plan. Both too much conservatism and a small conservatism is harmful to the business as these two extreme sides affect the business negatively.
Take Visual Support
It will be easier for the marketer to understand the scenario if they take visual support to show their collected data and statistics. When data is presented via a visual medium, its impact is more than the normal statistics on the business plan.
The Sample of a Business plan
Business Plan of a Coffee Shop
This is a simple guideline provided by the sample of a coffee shop for your convenience. The parts are described here:
1. Executive Summary
Executive summary includes the official summary of the business plan which will continue the business. This executive summary shows the overall business to the investors as they don’t have enough time to read all the things written in the plan.
A coffee shop named Dream Café will have a dream to become the largest copy shop in the area focusing on reducing the stress of the customer by providing fresh coffee to them and a place to them to meet with loved ones or family or friends.
This coffee shop will be run beside a local well-renowned university where the students can go by using some time. The place will be financed by a three-year lease contract.
He has enough funds amount to 10000 dollars to start the business. 70% of the fund will be used as the opening capital and the remaining 30% capital will be used as the running capital to run the business. He has gathered the capital by his own money and loan from the relatives.
He has estimated the profit margin of 20% from the investment and he wants to run the business for more than 10 years by this investment.
Dream Café has the following objectives:
- Becoming the best among the café near here
- Achieving profitability from the beginning of the operation.
- Keep a profit margin of 20%
The café has a mission to make it a place for family gathering, meeting with loved ones and friends for which they want to make this place a comfortable and enjoyable place for its customer who will come again and again here for its better quality and service.
The business will show their motive as to reduce the daily work stress of the customer and a convenient location for their family gathering and friends meet up by providing a high-quality product and customer service.
Dream café is coffee selling shop who has a leased property to sell their product, the shop is leased for three years. And they have an investment of $10000 which they have managed by their own effort and collecting money from the relatives as a loan.
They want to become the number one selling brand of made coffee among the competitors in the area.
5. Company Ownership
Dream café is a family shop. So it is owned by the brothers and they all have an equal investment for which they have the same right over profit and capital.
6. Company Locations and Facilities
This coffee shop will be run beside a local well renowned public university where the students can go by using a little time. The place will be financed by a three-year lease contract.
The place will be situated beside the university so it will be easier for the students to come by here and take coffee.
The Dream café is offering coffee to its customer. It has a variety of coffee to offer to its customer in its initial investment.
In future, it has an intention to increase the product line after being successful in the coffee market in that area. So it is quite a big market for them to do their business.
8. Product Description
A product is a coffee so they are offering various kind of coffee within the various price range.
Their offering starts at a very low price and stops to that range with the luxurious coffee. So they are providing fresh coffee which is being ground at their own place and they are being offered to the customer depending on their buying capacity.
As they don’t have any fixed customer range to whom they will specifically sell their coffee.
9. Market Analysis Summary
Today the lifestyle of the people is ever-changing. People start to take coffee who was addicted to the tea as their primary snacks.
The user of coffee is increasing day by day. And the income level of the people is increasing day by day which is resulting in extra residual money in their hands.
So, as a result, they are taking coffee in café like dream café with their loved one which they tend to invite at their home to take coffee at the previous times. So the market is showing a huge potential for the business.
10. Market Segmentation
The market of our coffee is segmented in various part. And we have basically segmented the student populations of this area as the business is beside the university so we have segmented the university students to whom we will serve according to their consumption pattern.
We have segmented them by both socio-economic situations and buying the pattern.
11. Target Market Segment Strategy
We have targeted the young students who have enough time to gossip with their friends and family and those who can afford coffee every day.
As our main customer is students, we have set the price keeping in mind that their income is low and they will buy the product if they get the lower price.
12. Market Needs
We have to keep in mind the market needs which is a lower price and better quality and we are providing that with our products and better service.
We have a lot of competitors including the coffee shops in this area as well as the tea business and the cold drinks in this area.
And the new entrants are also on the list as this sector is giving enough profits to give you a profit by pushing less effort. So we are taking a lot of competitors including the substitute and the new entrants along with the traditional competitors of our product.
We have set a profit margin of 20% which we have targeted to selling our product at a cheaper price to the students. We will provide premium service by this low-level profit margin to assure our sustainability to the sector as well as confirming the growth of the business.
A business plan is the soul of Every Business. There are certain things we need to Consider to make it a Successful Business Plan. Business Plan helps to find the right investor for your business. here is the infographic which gives you more idea which things we should consider in Perfect successful Business Plan.
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Business, marketing, and blogging – these three words describe me the best. I am the founder of Burban Branding and Media, and a self-taught marketer with 10 years of experience. My passion lies in helping startups enhance their business through marketing, HR, leadership, and finance. I am on a mission to assist businesses in achieving their goals.