7 Steps to Professionally Write Business Plan

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write business plan

Creating a business plan will help you achieve your business goals. A clear and compelling business plan provides you with a guide for building a successful enterprise focused on achieving your personal and financial goals. It can also help persuade others, including banks, to invest in what you are creating. Let’s to learn how well you can write business plan professionally. Follow some simple tips and write business plan.

  1. Analyze the market for your business.

Study if people really require your products or services. This needs to be more than mere guesswork and involves doing accurate and intelligent research. You need to analyze secondary research collected by outside observers, as well as getting primary research that you collect yourself, with your own methods and observations. Consider the following areas of inquiry:

  • Is there a viable market for the product or service you want to sell?
  • How old are your potential customers?
  • Is your product or service attractive to a particular ethnic or economic population?
  • Will only wealthy people be able to afford it?

  2. identify your initial needs for business.

What will you require to get started? Whether you want to buy an existing company with 300 employees or start your own by adding an extra phone line to your home office desk, you need to make a list of the materials you’ll need. Some may be tangible, such as five hundred file folders and a large cabinet in which to store them all. Other requirements may be intangible, such as time to create a product design or to do market research on potential customers.

  3. Prepare product samples for possible demo.

Always try prepare some base model to show to potential investors or to potential buyers. What exactly will your product look like? What materials will you need? Do you require money for research and development to improve your model? Do you need to hire an staff to draw up accurate manufacturing designs?

All these findings will help you to focus on how your journey will going to be? Think yourself.

  4. Will you need any space for your business?

You can have a look at actual retail spaces in the neighborhood where you’d like to open your buiness. Make a chart of the most expensive and least expensive sites by location and square footage. Then estimate how much space you require and how much money you’ll need to allow for rent.

  5. Estimate startup cost.

Make a list of all the tangible and intangible resources you need to get your business going. The total estimated price of all of these items will become your start-up cost whether you’re buying highly sophisticated computers or simply installing a new telephone line on your desk. If there’s any item in your estimates that seems unreasonably high, research other alternatives. But keep in mind that it’s better to include every element you truly need along with a reasonable estimate of the cost of each item, so you don’t run out of money or default on your loans. Be honest and conservative in your estimates, but also be optimistic. Don’t aim for the best of everything at the beginning. So get what is affordable, works and is actually needed.

  6. Think like an investor.

Ask yourself, “If I were going to invest X amount of money into a concept or idea, or even a product, what would I want to know?” Gather as much helpful and credible information as you can. Depending on your product, you may need to search long and hard for relevant information. You may need to prepare a killer pitch to be shown to an investor at a time of the meeting.

  7. Identify potential investors.

Banks and other funding sources don’t lend money because people with interesting business ideas are nice. They follow specific guidelines, such as the Risk Management Association (R.M.A) database, which are designed to ensure that they will make money by investing in or lending to your business. Lenders will typically look to the company’s Capital, Capacity, Collateral, Conditions, and Character or what is known as the 5C’s of lending when underwriting a loan. You’ll need to have covered all these bases well before seeking funding.

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write business plan

  Conclusion

I am confident that once you will go through all above mentioned steps, you will be able to get a clear idea about how to write business plan. Though, I would recommend you to what above video to get more clarity. Please share your feedback in comments. I will be more happy to answer them.

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I am a passionate blogger as well as an IT analyst. I run my own software consultancy firm. Apart from it I am a regular contributor at quora.com and Yahoo Answers. My prime objective for creation of this website is to guide novice entrepreneurs as well as startups worldwide.
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