Make a Business Plan

The business plan, together with solid market research, is the foundation of any business. It also makes your business attractive to investors and lenders, who look at this document to see how viable your business would be in the long run, before sinking their investment into your venture.

Here are 7 steps to make your very own business plan:

Step 1: Name your business. 

The business name reflects the character of your business, so be very deliberate when choosing one. You can also come up with a separate name for your product or service, which could serve as your trademark. Be very careful when choosing product names for they determine the brand image and brand experience of your product. 

Step 2: State your mission.

Spell out the purpose of your business and its goals, including the product or service concept you plan to adopt. Keep the business goals and targets realistic, so as not to put off the reader (investors) with fantastic fanciful claims.

Step 3: Introduce the business and its management team.

Make a clear and complete description of the business and how you plan to start and operate it. State the rationale behind the business's establishment. Introduce the people--the--team--who will run or invest in it. Include a brief look at their background including prior professional and business experience, educational attainment, leadership skills, and personal resources.

Step 4: Elaborate on your product and marketing plan.

Discuss your product or service in detail, and how it would generate revenues for your business. Include here the following information: unique characteristics of your products, size of the potential market, suppliers, etc. Next, describe your market, and provide a detailed description of your potential customers [demographic profile and recent consumption trends].

Step 5: Illustrate your financial strategy.

This part should attract the most interest from your readers--show the flow of money into and out of the business, coming up with either a profit or loss for a particular period of time. Keep in mind that finance people will look at the numbers and analyze your projected performance ratios. Seek assistance from an accountant or a financial planner in preparing this section of the plan.

Step 6: Write the executive summary.

This section encapsulates your entire business plan for those who don't have time to go over the entire document--these are often the decision-makers who should be informed about the business. The executive summary is usually written last, after the entire document is completed, and it may appear at the start or at the end of the business plan.

Step 7: Go over the entire document.

Whenever it is possible, use charts and graphs to illustrate cash flows and projected return on investment.

Basic Parts of a Business Plan

1. Cover

2. Executive Summary

3. Table of Contents 

4. Information on the Company

5. Information on the Industry and Business Environment
6. Information on the Management Team

7. Marketing Plan

8. Financial Statements


Source: Entrepreneur Magazine: Page 73, December 2012-January 2013 Entrepreneur Philippines

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