How to write a business plan

A lot has been talked about the importance of a business plan. Whether for raising fund or the smooth running of a business, everyone emphasises on the significance of it. Let us learn to write a business plan. What are the standard elements of a business plan? In what order should they be put? How long should the plan be?

Here are the standard elements that a business plan should contain:

Company name: The name of the company and the tagline should be made very clear in the beginning so that the reader or the user (in case your plan is in power point presentation format) remembers it well.

Executive Summary: This section summarises the business, the basic concept of the company. It contains details like the background of the company, the objective and the vision of the company. The summary should also include details about the ownership of the company and information like where is it located or the number of branches or offices it has.

The Team: Who owns the company is very important. Every member of the team should be introduced by his/her name, qualifications, work experience and other achievements. The contribution they will make to the company and their roles should also be mentioned clearly.

You should also mention the number of employees that you have planned to hire and the organisational structure.

The Pain Point:  In short, you should mention the pain point that your product or service will address. This will give the investor or lender an idea of how important or less important your product will be in the market.

The Product/Service: ‘What are you selling?’ This is a prime question and the probability of your success will primarily depend on this. An Angel investor says, “For a product/service to succeed, we look for sharply differentiated proposition.  The mantra here is, if the product/ service is ‘nice to have’ or ‘need to have’. It is the latter that interests.”  Details like the technology used in the manufacturing the product should also be mentioned. The pricing of the product should also be mentioned.

Money Matter: Clear understanding for who is paying for the product/service is important. Unless the entrepreneur can clearly enunciate who is going to pay for the product/ service, the sales and delivery effort is likely to go waste. And this is not       going to excite the investor as he can't see the company build up revenues

Not only the revenue model but also the future investment plan should also be mentioned. This is one of the major concerns of the investor. Clarity on investment required and how and when that will be used is critical.

Industry Analysis and Competition: This section should include a description of the industry, the current industry size and the growth potential. Information about the customers will also be useful. The position of your business with respect to the larger framework of the industry should also be there.

A business plan should not be too long and yet convincing. It can be either in the form of a report or a power point presentation. Whichever form you choose to do, the figures and the text should be cross checked to eliminate any possibility of error. A well done plan will reflect your professionalism and turn the tide in your favour.