Ws of a Business Plan

 

A business plan is a written description of your company's future and, more importantly, how you intend to get there. It is a document that explains what you intend to do to make your company profitable and how you intend to do so. It defines your business model as well as your strategies for making it work and, more importantly, profitable.

Typically, when a business idea emerges, you know what resources and capabilities you have at the start of your business and where you want to go in a certain period of time, usually three or five years. But how are we going to get there? Where do I begin? How do you pique the interest of investors? How do you even get your business off the ground? When you have a great money-making idea and concept, everything appears to be so simple. It is how you will realise your dreams and earn enough money to keep the business running for many years to come.

Writing a business plan is like creating a road map that will lead you to the point where you can start making money with your initial business idea. Your business plan, in its most basic form, is a collection of strategies and plans. It entails finances, marketing, personnel, and products. Consider it the foundation for your new business.

WHAT are the reasons I might require one?

• Seek out investors.

• To make a loan application.

• To determine the viability of your business concept.

• To make enhancements to your existing business.

• To grow your existing business.

Each of these types has a different emphasis and structure.

WHAT EXACTLY IS A BUSINESS PLAN?

It is a tool or document that describes a business opportunity or idea, the work team, operational and marketing execution strategies, business risks, and your company's economic viability. A well-written document will guide you through the process of turning an idea into a viable business.

In another context, the business plan becomes a critical tool in the analysis of a new business opportunity, a diversification plan, an internationalisation project, the acquisition of a company or an external business unit, or even the launch of a new product or service within the current business.

To summarise, for the development or launch of a startup, as well as for the analysis of new business investments The business plan has evolved into an indispensable tool. Even if you have an established business, you will still require a business plan as you expand and improve it.A business plan is never finished and should be reviewed on a regular basis, at least once a year, but more frequently if major changes to an existing company are anticipated. This means that every plan must adapt to changes in an effective and efficient manner, allowing the project to continue.

WHAT EXACTLY IS THE PURPOSE OF A BUSINESS PLAN?

Many entrepreneurs believe that they only need a business plan when seeking investment or when a bank requests one. However, when done correctly, the act of business planning allows the entrepreneur to conduct an extensive market study that will provide the information needed to design the best possible business model that will be both profitable and efficient.

Furthermore, the business plan will define the strategic measures for all.functional areas that will enable them achieve the objectives for the new business.

Once written, the business plan will be used internally to evaluate the company's management and deviations from the planned scenario. Proposing, if necessary, changes to the agreed-upon business model in order to obtain up-to-date information for the company's daily management. This will entail preparing the necessary changes and processes to get the business back on track. So let's delve a little deeper into the concepts of business planning. The Purpose of the Business Plan • Why do you need a business plan? • What is the purpose of writing the plan now? The Business Plan's WHAT • What is the goal of creating a specific plan? • When do you think you'll be able to complete your projects? • What is your company's business model? • What is your unique selling point? • What are your intended products or services? • What competitive positioning do you intend to develop? • What are your success criteria? • What markets do you intend to enter? • What market share do you expect to obtain? • What margins do you believe are feasible? • How much money do you think you'll make?

What are the expansion costs?

• What are the expenses associated with acquiring new customers?

• What do you intend to do with your company?

• What strategies do you intend to implement (financial, marketing, and planning)?

THE LOCATION OF THE BUSINESS ACTIVITY

• From where will your products be sold? Shop, office, website, social media, roadside, party planning, and so on.

• Where do you call home? Locally, centrally, virtually, and so on.

• Where are your products manufactured?

• Where do your distribution channels exist?

• How and where will they be sold?

• Where is your target market?

• Where will your employees be based?

WHEN will your business planning activities take place?

• When will you be required to begin your new activities?

• When will they come to an end?

• When will your investor be required to make an investment?

• When will your investor receive their money?

• When will you have enough employees to implement your new changes?

• When are your products and services going to be available?

• When will your products require an update and/or improvement?

• When is the best time to bring in new customers?

WHO are you going to present your plan to?

• A bank will usually take a charge over a property in order to make a loan.

• An investor who wishes to become a shareholder in your company.

• Persuade an investor to become a shareholder while also being involved in the day-to-day operations of your company.

• Management team to ensure they understand what is expected of them.

• Suppliers who will provide credit.

• Director-level hires to encourage them to join your company.

• The entrepreneur, believe it or not, should also refer back on a regular basis.

As you can see, there are many Ws involved with writing a business plan. The most important W is why should you write a business plan, and the answer is because it is such a great business tool.