A Step-by- Step Guide in Developing a Business Plan

Developing a business plan will help you achieve your business goals.

A clear and convincing businessplan helps you build a successful organization and business goals. It can also persuade certain audiences
such as bankers to invest and help you grow your business. A business plan refers to a written document
that thoroughly states what your business is all about, your business objectives, and how you will
achieve these objectives as well as your future business plans. Creating an effective business plan is a
great tool to attract prospective partners and business capitalists. Here is a step-by- step guide to
developing an effective business plan.

 

The first step is to create an Executive Summary. The Executive summary is the first part of your
business plan. The contents include details about your company, explains what you do, and outlines
what you’re looking for from your readers. It covers the highlights of your detailed plan. More often, the
investors will only ask about your executive summary when they are evaluating your business so it is an
advantage if you do your pitch more in your executive summary. If they will like what is presented in
your executive summary then most of the time they will ask you to present the rest of your business
plan. Ideally, your executive summary will be one to two pages so make sure to cover the key factors of
your business. An executive summary includes a one sentence summary of your business, at least two
sentences about what problem you are solving for your customers and filling a need in the market, your
products or services, the target market of your business, provide a brief overview about your team since
most of the investors put a weight on the team because any great ideas also need great execution in
order to become a reality, your financial summary, if you need to raise a budget for your business then
you must include a funding requirements on your executive summary, and lastly is discussing the
progress you made so far on your business and future milestones that you intend to achieve.

 

Next step is to create the opportunity section of your business plan. This is where you need to discuss in
detail the problem that you are solving, the solution of that problem, your products or services, and how
your products or services fits into the market. This also includes a further discussion on your target
market. When stating your target market make sure to consider these three methods. The TAM, SAM,
and SOM. The TAM is your Total Addressable Market, meaning everyone you wish to reach with your
product or service. The SAM is your Segmented Addressable market which means a portion of TAM you
will target, and the SOM is your Share of the Market which is a subset of your SAM that you will
particularly reach in the first few years of your business. Basically, in the opportunity plan, you just need
to expand what you have mentioned in your executive summary.

 

Next step is the execution section of your plan. Here you will discuss on how you will take the
opportunity into business. You will discuss in detail about your marketing and sales plan, and how are
you going to measure your success.

 

 

Next is the team and company section of your plan. Here you will need to make a pitch for your current
team and the people you plan to hire in the future. As mention in the executive summary, you need to
state here why your team is the best and how they are going to achieve in executing your business
goals.

 

 

Lastly is the financial plan. In this section, you will make projections and sales forecast. Usually, you will
make monthly projections for the first 12 months, and annual projections for the next 3 to 5 years. The
sales forecast on the other hand states on how you are going to sell over for the next few years.

 

 

Step-by- Step Guide in Developing a Business Plan Developing a business plan will help you achieve your business goals. A clear and convincing business plan helps you build a successful organization and business goals. It can also persuade certain audiences such as bankers to invest and help you grow your business. A business plan refers to a written document that thoroughly states what your business is all about, your business objectives, and how you will achieve these objectives as well as your future business plans. Creating an effective business plan is a great tool to attract prospective partners and business capitalists. Here is a step-by- step guide to developing an effective business plan. The first step is to create an Executive Summary. The Executive summary is the first part of your business plan. The contents include details about your company, explains what you do, and outlines what you’re looking for from your readers. It covers the highlights of your detailed plan. More often, the investors will only ask about your executive summary when they are evaluating your business so it is an advantage if you do your pitch more in your executive summary.

 

 

If they will like what is presented in your executive summary then most of the time they will ask you to present the rest of your business plan. Ideally, your executive summary will be one to two pages so make sure to cover the key factors of your business. An executive summary includes a one sentence summary of your business, at least two sentences about what problem you are solving for your customers and filling a need in the market, your products or services, the target market of your business, provide a brief overview about your team since most of the investors put a weight on the team because any great ideas also need great execution in order to become a reality, your financial summary, if you need to raise a budget for your business then you must include a funding requirements on your executive summary, and lastly is discussing the progress you made so far on your business and future milestones that you intend to achieve. Next step is to create the opportunity section of your business plan. This is where you need to discuss in detail the problem that you are solving, the solution of that problem, your products or services, and how your products or services fits into the market.

 

 

This also includes a further discussion on your target market. When stating your target market make sure to consider these three methods. The TAM, SAM, and SOM. The TAM is your Total Addressable Market, meaning everyone you wish to reach with your product or service. The SAM is your Segmented Addressable market which means a portion of TAM you will target, and the SOM is your Share of the Market which is a subset of your SAM that you will particularly reach in the first few years of your business. Basically, in the opportunity plan, you just need to expand what you have mentioned in your executive summary. Next step is the execution section of your plan. Here you will discuss on how you will take the opportunity into business. You will discuss in detail about your marketing and sales plan, and how are you going to measure your success. Next is the team and company section of your plan. Here you will need to make a pitch for your current team and the people you plan to hire in the future. As mention in the executive summary, you need to state here why your team is the best and how they are going to achieve in executing your business goals. Lastly is the financial plan. In this section, you will make projections and sales forecast. Usually, you will make monthly projections for the first 12 months, and annual projections for the next 3 to 5 years. The sales forecast on the other hand states on how you are going to sell over for the next few years.