An effective business plan outline is an essential road-map for organizing your thoughts, this guide will help you in drafting a perfect business plan.
At certain points of your business elevation, you need a business plan outline to get more credibility. It projects your business over next periods of 3, 5 or even 10 years. Every day, your business faces a bunch of questions. What are going to be your goals? Which locations is your business going to expand? How many employees will you recruit? What will be your annual sales/profit figure? Business plan shows the illustration of the business objectives and paths to achieve them. Still, it needs to be brief and written clearly.
Thinking and strategizing part can play a more crucial role than the actual writing process. So, make sure you have the right team to brainstorm and consult with before your assistant can help you with the drafting process. Secondly, to make things look right in the eyes of your potential investors and win their trust, your plan has to be formatted and proofread properly.
Business Plan Outline has several standard sections you need to fill in:
1 – Business Analysis: Your mission statement will highlight what your Company intends to SWOT analysis will include Strengths, Weaknesses, Opportunities, and Threats sections. It will give an insight to potential customers, investors and stakeholders why they want to commit to the Company for the long run.
2 – Industry and Competitor Analysis: Is there a viable market for the product or service the Company intends to sell? Consider which segment of the market locally or globally you want to address. Define your effective strategy to stand out among your rivals. The industries with the highest success rate of startups are Finance, Insurance and Real Estate. While Silicon Valley was #3 on the list of tech companies, behind Boulder and Fort Collins-Lovelace.
3 – Target Customer Analysis: Craft your audience picture. Their age range, demography, location and psychological preferences, everything matters! Outside observers can also provide intelligent research, once your budget is not too tight. Next step will be either to do media planning or PR campaign to reach your audience.
4 – Marketing & Branding: You can first ask yourself – What is the value my product offers? Preparing a prototype of your product can help you answer many questions before you go. Then, conduct a market research for the promotion and right product positioning. Currently, a viable website to attract and inform your customers is also a must.
5 – Operations Management Plan: Your Company’s core team members will input their skills and talents for the big dreamy idea. You can describe in your business plan outline about the action plans you are going to take in the range of 1 month to 5 years. Two founders, rather than one, essentially grow your chances of success. You will more likely raise 30% more investment and enlarge your customer base three times faster.
6 – Financial Forecast: What is going to be your financial leverage ratio, i.e. how much borrowed funds can your business afford to keep its efficiency on the most optimal level. Estimate your business expenses and fixed cost. Also, what profit margin your business aims separately calculated for different types of products and services.
Life is a numbers game, and so is business. To mind the statistics, remember that 50% of newly established companies close down within 5 years. Contrary to the recent idealized belief of college dropouts as a success factor for startups, like Bill Gates, Steve Jobs, Mark Zuckerberg among others, business world once again proves the opposite – professionalism opens more doors. Out of all entrepreneurs, 95% have at least a bachelor’s degree. Hence, raising capital with the help of an outstanding business plan outline can help you create a safety pillow and survive through thick and thin.
As Robert Kiyosaki mentions, “Selling is the most important skill as an entrepreneur. I’m not talking so much about selling a product so much as selling yourself, team, and deals.” So be prepared to present yourself in the best light and sign the right deals backed with the right team.