Businesses develop from great ideas that leave a mark on the general public. From lifestyle, finance, healthcare, food, technology, and beyond, we are surrounded by brands that have developed from and evolved into something new. A Business Plan Example is the foundation on which the majority of success and failure depends. Hence, as one of the emerging career choices, Entrepreneurship is taking centre stage. Therefore, in this blog, it is essential to outline the business plan of action.
What Is A Business Plan?
A business plan is a detailed and formal document that outlines the objectives of a business and ways to achieve them. The plan needs to be detailed, displaying every possible scenario that can impact the business. Highlighting the systems to achieve objectives is a key aspect that needs to be written in detail. No matter the business size (startups, mid-size businesses, or multi-conglomerate), all of them go through the same business plan writing guide.
Carefully thought-out and detailed business plans turn out to be real and have a deeper impact on the environment in which they function. Moreover, you get funding quite easily when compared to unplanned businesses. Why? Because investors look for a plan of action before investing. And if you don’t have one, then forget it.
Essential Reasons For Students To Learn Business Planning
In an academic setting, developing a business plan assignment is a common task when taking business, entrepreneurship, or marketing courses. However, there are more advantages to writing than just academics. It enables students to:
- Create real-world business thinking.
- Utilise concepts, such as SWOT analysis, budget, and customer segment.
- Enhance research, critical thinking, and communication skills.
- Prepare for maybe their future endeavours.
Even if you never start your own business, the understanding of how a business plan operates will have some value in many professions, such as management consulting, marketing, and finance, just to name a few.
7 Important Elements of A Business Plans Assignment
Being a foolproof document that highlights the details of creating any business must integrate these 7 elements. These are the non-negotiables of any business plan writing guide you must know about:
Executive Summary
What the business aims for and what it tries to achieve is mentioned here in detail. Here include a mission statement, a brief about the product or service, and other related information. If you are in the process of receiving investment, then you can also share how you are going to use it.
Company Description
A company description provides a detailed look at the business and explains what sets it apart from others. You can input business name, location, business structure, and other details. What type of business do you want it to be? Will it be a sole proprietorship, LLP, or a corporation? Provide such information in this section. Moreover, the short and long-term goals of the business are to be mentioned here.
Market Analysis
An entrepreneur must understand the type of business they are in, the industry in which they operate, and the target market. It must also highlight the competition and how yours is distinct from others. Explaining how the company fits within the industry is another question you must respond to. Market analysis also talks about trends, consumer behaviour, demographics, market size, SWOT analysis, and other actions that must be taken.
Organisation & Management
In this portion, the business structure and leadership team are described. It often includes an organisational structure that outlines the composition and each person's role. It highlights key personnel by showcasing their background, experience, and education to establish their capacity for leading and growing the business. Moreover, the ownership structure is also displayed in detail and as a percentage.
Product / Service
What are you selling? Is it a product or a service? This section talks about the aspect that is going to generate revenue. Furthermore, factors like price, product life span (if selling a product), and competitors are to be highlighted here. The aim is to display the difference between your product or service and how it is better than the competition. Mention any intellectual property you hold (patent or trademark).
Marketing & Sales Strategy
The marketing and sales strategy discusses how the company will attract and retain customers. It addresses pricing, sales strategies, advertising methods, promotional campaigns, and approaches to engage with customers. This section also usually covers digital marketing strategy, like social media, email marketing, and online advertising, leading to effective examples of a business plan.
Financial Projections
Finally, and most crucial, the money section. The likes of cash flow statement, profit and loss statement, and balance of at least the next 3 - 5 years are displayed here. If the business is going through losses, the break-even stage can be shown here, and the forecasts for the business reaching this stage. Moreover, what the budget is for the business can function has to be displayed in detail.
Various Types of Business Plans To Consider Before Moving Ahead
If you are planning to develop a business from scratch, there is no right or wrong method of doing so. However, all of the business plans fall under these two categories:
Traditional Business Plan
A typical 15-25 page plan that integrates the traditional method of developing a business from scratch. It includes executive summary, company description, market analysis, organisation & management, product/service, marketing and sales strategy, and financial projections.
Startup Business Plan
Great for early age startups or businesses that are trying to capitalise on an ongoing opportunity. Basically, it is a single-page document that involves key partnerships, key activities, essential resources, value proposition, customer relationships, customer segments, channels, cost structure, and revenue streams.
Do Not Commit These Mistakes In A Business Plan Example
While developing a business plan of action, you are bound to face certain challenges that might lead to mistakes. Thus, you must try to avoid these problems at any cost.
Lack of Clear Objectives
What the business is trying to achieve should be the foremost question you must answer. The lack of it makes your assignment lose any credibility. An aimless business will soon shut down, which may confuse the owners as to why the business has reached this conclusion. Thus, if you need help from an expert to do so, you can always ask the Assignment Writers.
Ignoring Sufficient Market Research
Market research allows you to understand the market size and the requirements. Skipping this can only result in unrealistic expectations. A good scheme is built on effective data about the target market, customer needs, industry trends, and competition.
Unrealistic Financial Projections
Mistaking income for profits or being off by significant costs is a serious mistake. Investors and other stakeholders can immediately withdraw their investments if unreasonable earnings expectations are in the statements. Going by this, you are either considered a fraud or unprofessional enough to generate unrealistic numbers.
Step By Step Business Plan For Effective Results
Making an assignment for a business plan is complex and not a one-time go document. It requires strategic input and careful planning for the plan of action to actually generate results.
Define What Business Idea Do You Have
The initial step in developing a successful business plan is to define the business idea. Discuss the product or service your business will provide, the target customer it will engage, and the problem it will address. This is where you reveal your Unique Selling Proposition (USP), the feature or benefit that differentiates your business from others.
Set Clear Business Goals
Once you have a clear idea, the next step is to set specific goals. One of the methods is to go for a SMART approach - Specific, Measurable, Achievable, Relevant, and Time Bound. Business goals can be potential revenue targets, achieving a specific number of customers, expanding to new locations, and beyond. If you set clear objectives, it will guide you in your decision-making and tracking progress.
Conduct Market Research
Before starting a business, it's important to understand the marketplace. You should conduct market research based on your target audience, preferences, and purchasing habits. Examine the competition to identify what their strengths are and whether there is an unmet need. You can study trends and customer preferences utilising a variety of resources, including, but not limited to, surveys, interviews, and online assessment tools, and by analysing government data.
Develop A Marketing Strategy
Your business requires customers, which means a strong marketing strategy. You will need to make some choices, like how you will price your product, how you will position the product in the market, and how you will promote it. Identify the ways that you will market your product, whether that be social media, online advertising, email marketing, or word of mouth, to reach your audience.
Create Financial Projections
Now, it’s time to showcase the money aspect of your business. Include cash flow statements, income statements, and balance sheets of various years. Moreover, the budget of each aspect of your business should be explained thoroughly for a better understanding of the costs. Financials can be affected by location, setup cost, equipment (purchasing or leasing), inventory, and other overhead expenses. To solve financial problems in your plan, you can connect withAssignment Writers.
Begin The Executive Summary
Though it is found at the start of the Business Plan Example, the executive summary is best drafted last. It captures the essence of the entire plan, including the business idea, the business’s purpose, goals, market opportunity, the team, and financial highlights. A good summary captures the reader’s attention and motivates them to continue reading the entire business plan.
Review & Finalise The Plan
Before you actually begin to use your scheme, go through it thoroughly. Doing this will help you get in contact with errors, inconsistencies, or any section left unclear. Ensure that all facts and figures are accurate and updated. In the end, a polished and professional business plan of action leaves a strong impression.
Conclusion
A Business Plan Example offers a great deal of learning for students as well as for entrepreneurs. However, in the academic scheme of things, students learn about how critical it is to write one. By exploring its important parts, from the executive summary to the financial forecasts, you can build critical and strategic thinking skills while simultaneously preparing for professional futures available to you in fields such as management, finance, or consulting.
