Writing a Business Plan as an Entrepreneur
Entrepreneurship involves strategizing and planning operations as a crucial part of the process. The first in the process, of course, is the development of ideas that will serve as the building blocks for the establishment of a business enterprise. Afterward, entrepreneurs initiate the planning stage, often requiring a detailed written summary of the ideas and other necessary sections. That is when the business plan comes in.
Wikipedia defines a business plan as a formal written document that contains business goals, methods for achieving those goals, and the timeframe for their accomplishment.
The business plan details the form of business, information about the idea, plans on location, a brief analysis of the competition, financial projections and also gives the entrepreneur an opportunity to make future projections concerning the business.
The benefits of this plan to an entrepreneur cannot be over emphasized. It forces individuals to think about the future. Proper planning for the future is highly important to sustain the business and build the start up for success and continuity. Lack of planning will definitely put the entrepreneur in a tough place where he/she will need to make hasty decisions which could eventually lead to losses and a potential exit from the market. The business plan also helps to motivate a loan application where entrepreneurs might need to apply for loans or grants.
In cases where there are deviations in business strategy, it is easier to detect them via the business plan. Mistakes and deviations might prove inevitable. The detailed analysis in the plan will always stand to correct that and keep the entrepreneurs ideas in check. In the next sub heads, I’ll be discussing the various elements of a good business plan and how well to write them.
Elements of a Business Plan
1. Front Page
This is obviously the first thing to come when writing a business plan. The front page carries the name of the business and the owner, the form of business, and some personal information about the owner which can include address and telephone number of the owner or rather the business line of the enterprise. Though, it is probably the page with the least amount of information or rather of least relevance based on the information that should go into the plan, the front page should look nice and creative.
2. Content Page
The next up on the list is the content page. Here, all the headings for each element to be discussed in the business plan are listed. Despite being the second page, it is advisable to write this as the last element in the plan because the content on this page has to be listed with their corresponding page numbers.
3. Introduction
Entrepreneurs discuss the general overview of the business idea on this page. They should provide a brief introduction detailing the idea\’s essence, the business type (manufacturing, processing, trading, etc.), and specify the form of business—sole proprietorship or partnership. Additionally, entrepreneurs need to clearly outline the goals and objectives of the business within the introduction.
4. Comprehensive Description of Proposes BusinessÂ
This page serves more as a follow up to the introduction page. It discusses the business idea in details and states the processes involved in getting the expected result.
Here, you list all the headings for each element to be discussed in the business plan. It\’s advisable to write this as the last element in the plan because the content on this page needs to be listed with their corresponding page numbers.
 5. Location Analysis
Entrepreneurs, especially in new ventures, often seek temporary spaces to operate, unless an immediate permanent site is required. In this section of the business plan, they should provide a concise description of the location, including rental costs, proximity to the market and competitors, as well as any required funds for securing the place. Additionally, enhancing the location analysis with a layout can be beneficial.
 6. Industry Analysis
At a particular stage in the planning process, entrepreneurs must have identified the industry their products or services will fall into.
Once completed, entrepreneurs need to address crucial industry aspects such as competition, suppliers, buyers, substitutes, and entry conditions. Regarding competition, entrepreneurs list competitors and strategies to stand out. They discuss prices. Regarding suppliers, they mention input suppliers and alternatives when the primary source is unavailable.
In whatever form of entrepreneurship you get involved with, buyers hold ultimate importance. Describe the target market and the market growth rate pertaining to the industry. Substitutes are also an important part of the industry analysis. The analysis should list substitute products with their prices and market acceptance. Additionally, it should outline the entry conditions required to join the industry.
7. Production Plan
Next, entrepreneurs explain the production processes, machinery involved, and arrangements for storing items during production.
8. Management Plan
This explains the positions in the company. When applicable, entrepreneurs should compile a list of all company positions, detailing their respective roles and attributes. Additionally, create concise resumes for each team member, highlighting their experiences, qualifications, and contributions to the business. Consider including an organizational chart for ventures with a structured company setup.
9. Marketing Plan
Discuss the overall marketing strategy of the venture here. Strategies in the plan should be viable and reasonable, that is, they must be achievable and be able to convince anyone who reads the plan that things included in the plan can be attainable. Additionally, it should well explain how the plans will be implemented.
10. Resources Required
Entrepreneurs need to list every resource necessary for product manufacturing, detailing their costs and justifying their importance in the production process.
11, Financial Plan
This is the last element that discusses a major point in the business. It discusses everything relating to money.This section includes items such as balance sheets, income statements, cash flow statements, capital estimates, expenditures, and monthly spending estimates. The financial plan also helps the entrepreneur make financial projections for the future of the business. The financial forecast for the first few years after establishment could serve as a starting point.
12. Conclusion
Just like any conclusion, this simply summarizes the contents of the business plan and reasons why the business would succeed. The content of this page should be concise.
13. Appendix
Add all pertinent information that contributed to constructing the business plan here.
The business plan is a useful tool for entrepreneurs as it has loads of benefits to the both the entrepreneur and the business. It decides how successful the business will be and how well it can grow over a particular period of time. The plan serves as a good source of reference and a bargaining tool for entrepreneurs.
