Businesses today are evolving rapidly and staying ahead of the curve. And that’s why you need to focus on generating new ideas by fostering creativity. If you are too slow to evolve or refuse to change with time, the chances are that you will be out of the market.
No business will survive the fierce competition without a strong business plan. A business plan is a blueprint of how a company will operate. It is a road map providing your company’s future growth and covering all aspects of the business, including the industry, the financial projections, marketing, the employees, and operational plans.
It also helps you in attracting investors and talent. Whether your business is in a startup stage or you want to move your existing business into a new direction. An effective business plan serves as the right tool to turn your dreams into a reality.
An MBA can help you get ahead
Most entrepreneurs switch to starting their own business after spending a few years or decades in the industry because they want a more exciting and satisfying journey. Although, the knowledge and expertise gained through your past jobs may not be enough for creating a successful business.
You will need to enhance your education to help you keep the business running and excelling. A high-quality Online General MBA Program offered by renowned Institutions can provide you with the necessary knowledge, skills, and resources to succeed in your business. It provides you with experiential learning opportunities crucial to starting your own business.
Writing a Business Plan
Research indicates that around 70% of entrepreneurs recommend writing a business plan before starting a business because it has huge payoffs. While each company might have a different business plan, the main components remain the same. A business plan should include:
- Executive summary
It is one of the most crucial parts of a business plan as it includes the highlights of the rest of the document. It also consists of the reason you are starting a new business.
- Description of business
The second part of a business plan is the business description. It includes your business’s mission, goals, objectives, products, and services.
- Market strategies
You will define your target market in this section. You will then propose marketing and promotional strategies for your product or service, illustrating how your product or service adds value to your customers.
- Competitors analysis
This section includes your competitors. You compare your product or service with the competitors’ and define why your product is better than theirs by reinforcing your competitive advantage.
- Products and services
You will define your products and services in detail here. You can describe your manufacturing process, the costs incurred in creating them, and your offerings’ unique features and benefits.
- Management Description
This part covers the management of your business. You can provide a detailed introduction of your leaders, their qualifications, and business responsibilities.
- Operating plan
The operating plan includes information regarding how and where the company will operate.
- Financial analysis
It is one of the most important parts of a business proposal. It serves as a deciding point for the investors to accept or reject your proposal. It includes the details of the funds you need to start running your business. You can include your financial statements here and provide a cash flow projection.
Characteristics of a Winning Proposal
A well-thought-out, properly formulated, and comprehensive business plan is essential when you seek capital for your business. It should focus on the project’s financial viability-the market and the investor. Here are a few points you should focus on when writing a winning proposal:
- Design your proposal according to investor’s requirements
The first step is to address the investor’s requirements. If you want to win investors for your business, you need to understand their requirements and mention the payoffs they will be getting in the future. You need to focus on how your products or services will benefit them.
You can mention these details in your Executive Summary, as it is the first thing your investors will look at. Make sure your executive summary is appealing enough to invite your investors to read the rest of the plan.
- Define your differentiating Value
The key to winning your investors is the differentiation your product or service provides. It is the competitive advantage that differentiates you from your competitors. Are you a low-cost provider?
Your product has a unique feature that distinguishes it from others. Make sure to add statistics and factual statements wherever possible. It would be best to communicate why your product or service is different from your competition and how it will add value to the investors.
- Qualify your company and employees
In a fiercely competitive business world, the investors would like to know why your company is best qualified to do the work. Show them the expertise and qualifications you and your people have to achieve your business goals.
For instance, if you are an MBA, you will focus on all the business-related areas. That includes finance, marketing, etc., by devising strategies on product/service improvement over time, focusing on growth strategies, and maybe launching a new product or service. Similarly, a qualified team of professionals will help you achieve your business goals.
- Deliver your brand promise
A brand promise is a social contract between a company and its customers. It is more related to experience than the product itself. The internal and external stakeholders know what to expect from you through your brand promise.
If you fail to deliver your brand promise, you will lose your customers. For instance, Apple’s brand promise is “Think Differently,” and they do not fail to surprise their customers by introducing new products and unique features with time. Therefore, it is essential to design your business strategies carefully to make sure you can deliver your brand promise.
Research on the benefits of business planning indicates that Entrepreneurs with a business plan have a 129% increased chance of growing beyond the startup phase and a 260% increased chance of developing from “idea” to “new business.”
Business plans are important because they give you a clear idea of the resources needed to achieve your goals within an established timeline. They allow the investors to see the viability of a company and help business owners identify and plan for potential risks. If you design an attractive business plan, you will attract potential customers to make it happen.
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