How To Write A Business Plan?

For start-ups,

Second, the business plan can also help push the planned venture companies to venture capitalists. One of the main purposes of the company's business plan is to raise funds.

Therefore, the business plan must specify:

(1) what is the purpose of starting a business? Why should we take risks and invest in energy, time, resources and funds to start ventures?

(2) how much money do we need to start an enterprise? Why do we need so much money? Why do investors need to inject capital into it? For established venture enterprises, the business plan can set a more specific direction and focus for the development of enterprises, so that employees can understand their business objectives and motivate them to work for common goals.

More importantly, it can make the investors and suppliers, sellers and so on understand the operation and business objectives of the enterprises, and persuade the investors (original or new ones) to provide funds for the further development of the enterprises.

It is for this reason that the business plan will be the most important part of the business documents written by entrepreneurs.

So, how to make a business plan?

Those entrepreneurial plans that neither give investors enough information nor inspire investors can only be thrown into the dustbin.

In order to ensure that the business plan can "hit the target", entrepreneurs should do the following:

1. focus on products

In the business plan, all the details relating to the products or services of the company shall be provided, including all investigations carried out by the enterprise.

These questions include: what kind of development stage is the product being in? What is its uniqueness? What are the methods of distributing products? Who will use the products of enterprises? Why? How much is the production cost and how much are the selling price? What is the plan of the new modern products for the enterprises to develop? The investors should be pulled into the products or services of the enterprises so that the investors will be interested in the products as well as the entrepreneurs.

In the business plan, entrepreneurs should try to describe everything in simple words. The definition of goods and their attributes is very clear to entrepreneurs, but others do not necessarily understand their meaning.

The purpose of formulating a business plan is not only to make investors believe that the products of a company will have a revolutionary impact in the world, but also to convince them that they have proof of their argument.

The business plan's interpretation of the product should make the investor feel, "Oh, how wonderful and inspiring this product is!"

2., dare to compete.

In the business plan, entrepreneurs should carefully analyze the situation of their competitors.

Who are the competitors? How do their products work? What are the similarities and differences between the competitors' products and the products of their enterprises? What are the marketing strategies adopted by the competitors? The sales, gross profit, income and market share of each competitor should be clearly defined.

Then, we discuss the competitive advantage of our company relative to each competitor, and show investors that the reason why customers prefer the company is: the product quality of our company is good, delivery is fast, the location is moderate, the price is right, and so on, and the business plan should make its readers believe that this enterprise is not only a strong competitor in the industry, but also will be the leader in determining the industry standard in the future.

In the business plan, entrepreneurs should also clarify the risks that competitors bring to the enterprise and the countermeasures adopted by them.

3. understand the market

The business plan should provide investors with in-depth analysis and understanding of the target market.

We should carefully analyze the influence of economic, geographical, occupational and psychological factors on consumers' choice of buying their products, and the role of each factor.

The business plan should also include a major marketing plan. The plan should list areas where the company intends to launch advertising, promotion and public relations activities, and make clear the budgets and benefits of each activity.

The business plan should also include a brief account of the sales strategy of an enterprise: whether an external sales representative or an internal staff is used; whether an enterprise is a reseller, a distributor or a franchisee? What kind of sales training will the company provide? Besides, the business plan should also pay special attention to the details of the sale.

4. indicate the direction of action.

The action plan of an enterprise should be unsolvable.

The business plan should clarify the following questions: how can the enterprise bring the product to the market? How to design the production line and how to assemble the product? What raw materials are needed for the production of the enterprise? What kind of production resources do the enterprises own, what production resources do they need, how much is the cost of production and equipment? Do they buy equipment or rent equipment? Explain the fixed and variable costs associated with product assembly, storage and pmission.

5. show your management team.

To pform a thought into a successful risk enterprise, the key factor is to have a strong management team.

The members of this team must have higher professional knowledge, management skills and years of work experience. They should give investors the feeling: "look who is in this team. If the company is a football team, they will always go to the World Cup finals." the function of the manager is to plan, organize, control and guide the company to achieve its goals.

In the business plan, we should first describe the whole management team and its responsibilities, but then introduce the special talents, characteristics and attainments of each manager, and describe the contribution that each manager will make to the company.

The business plan should also clarify the management objectives and organizational chart.

6. excellent planning summary

The summary of the plan in the business plan is also very important.

It must make the reader interested and eager for more information, which will give the reader a lasting impression.

The summary of the plan will be the last part written by the entrepreneur, but it is the first thing that the investor should read. It will extract the most relevant details from the plan, including the basic situation of the company, the company's capabilities and limitations, the concise and vivid summary of the company's competition on the hand, marketing and financial strategy, and the management team of the company.

If a company is a book, it is like the cover of the book. If it is well done, it can attract investors.

It will give an impression to venture capitalists: "this company will become a giant in the industry, and I can't wait to read the rest of the plan."

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Two. Contents of the business plan

1. summary of the plan

The plan summary is listed in the front of the business plan book, it is the essence of the condensed business plan.

The summary of the plan covers the main points of the plan, so that the reader can review the plan and make a judgement in the shortest time.

The summary of the plan generally includes the following contents: Company Introduction; main products and business scope; market profile; marketing strategy; sales plan; production management plan; manager and its organization; financial plan; capital requirement status.

When introducing an enterprise, it is first necessary to explain the idea of establishing a new enterprise, the formation process of new ideas, and the goals and development strategies of an enterprise.

Secondly, we should talk about the present situation, past background and business scope of the company.

In this part, we should make an objective comment on the past situation of enterprises and avoid mistakes.

A good analysis often wins trust, which makes it easy for people to agree with the business plan.

Finally, we will introduce the background, experience, experience and expertise of entrepreneurs.

The quality of entrepreneurs often plays a key role in the performance of enterprises.

Here, entrepreneurs should try to highlight their strengths and express their strong enterprising spirit in order to leave a good impression on investors.

In the summary of the plan, enterprises must also answer the following questions: (1) the industry, the nature and scope of enterprise operation; (2) the content of the main products of the enterprise; (3) the market of the enterprise, who is the customer of the enterprise, what needs do they have; (4) the partners and investors of the enterprise; (5) the competitors of the enterprise, and the competitors' influence on the development of the enterprises.

Try to be concise and vivid.

In particular, we should specify the differences between the enterprises and the market factors for their success.

If an entrepreneur understands what he is doing, a summary of 2 pages is enough.

If entrepreneurs do not know what they are doing, the summary may be written in more than 20 pages.

Therefore, some investors pick out the grain from the chaff according to the length of the summary.

2. product (service) Introduction

When evaluating investment projects, one of the most important concerns of investors is whether the products, technologies or services of venture enterprises can solve the real life problems to the greatest extent, or whether the products of the venture enterprises can help customers save money and increase their income.

Therefore, product introduction is an essential part of the business plan.

In general, product introduction should include the following concepts: product concept, performance and characteristics; main product introduction; product market competitiveness; product research and development process; new product development plan and cost analysis; product market prospect prediction; product brand and specialization.

In the introduction part of the product (service), the entrepreneur should give a detailed explanation of the product (service), indicating that it is accurate and easy to understand, so that investors who are not professionals can understand it.

In general, product prototypes should be accompanied by product prototypes, photos or other introductions.

Generally speaking, product introductions must answer the following questions:

(1) what problems do customers want to solve by products, and what benefits can customers get from their products?

(2) what are the advantages and disadvantages of an enterprise's product compared with its competitors' products? Why do customers choose their products?

(3) what kind of protection measures are taken by the enterprises for their products, what patents or licenses do they have, or what agreements have been reached with the manufacturers that have applied for patents?

(4) why does the product pricing of an enterprise make the company generate enough profits? Why do users buy products in large quantities?

(5) the way in which enterprises improve the quality and performance of products, and what plans the enterprises have to develop new products.

The introduction of products (services) is more specific, so it is relatively easy to write.

Although it is necessary to praise their products for promotion, it should be noted that every commitment undertaken by an enterprise is "a debt" and must be made to cash in.

Keep in mind that entrepreneurs and investors build a long-term cooperative partnership.

Empty promises promise only temporary success.

If an enterprise fails to fulfill its promise and fails to pay its debts, the reputation of the enterprise will inevitably be greatly damaged.

3. staff and organizational structure

With the product, the second step for entrepreneurs is to form a combat management team.

The quality of business management directly determines the size of business risk.

High quality management personnel and good organizational structure are important guarantee for good management of enterprises.

Therefore, venture capitalists will pay special attention to the evaluation of management teams.

Managers of enterprises should be complementary and team oriented.

An enterprise must have specialized talents in charge of product design and development, marketing, production operation management and enterprise financial management.

In the business plan book, we must clarify the main management personnel, introduce their abilities, their duties and responsibilities in this enterprise, their past detailed experience and background.

In addition, in this part of the business plan book, we should give a brief introduction to the company structure, including the organization chart of the company, the functions and responsibilities of various departments, the heads and key members of various departments, the remuneration system of the company, the list of shareholders of the company, including stock options, proportions and privileges, the board members of the company, and the background information of the directors.

4. market forecast

When an enterprise wants to develop a new product or expand to a new market, it must first make market prediction.

If the forecast result is not optimistic, or the credibility of the prediction is doubting, then the investors will have to assume greater risks, which is unacceptable to most venture capitalists.

Market forecast first needs to predict: does the market have the demand for this product? Can the degree of demand bring the desired benefits to the enterprise? How big is the new market? What is the future trend and the state of the demand development? What are the factors that affect the demand?

Secondly, the market forecast also includes the analysis of the market competition -- the competition pattern faced by the enterprises: what are the main competitors in the market? Is there any market gap conducive to the products of the enterprise? What is the market share expected by the company? How will the competitors enter the market and how will these reactions affect the enterprises?

In the business plan book, the market forecast should include the following contents: the summary of the market situation, the overview of the competition manufacturer, the target customer and the target market, the market position of the enterprise's products, the market area and the characteristics, etc.

The prediction of market for venture enterprises should be based on rigorous and scientific market research.

The market faced by venture enterprises is inherently more changeable and elusive.

Therefore, risk enterprises should expand the scope of information collection as much as possible, attach importance to the prediction of the environment and adopt scientific forecasting means and methods.

What entrepreneurs should bear in mind is that market prediction is not a mere imagination, but a misunderstanding of market errors is one of the most important reasons for the failure of enterprises.

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5. marketing strategy

Marketing is the most challenging part of enterprise operation. The main factors that affect marketing strategy are: (1) the characteristics of consumers; (2) the characteristics of products; (3) the state of enterprises themselves; and (4) the factors of market environment.

Finally, the marketing and marketing benefits are the factors that affect marketing strategy.

In the business plan, the marketing strategy should include the following: (1) the choice of market organization and marketing channel; (2) marketing team and management; (3) promotion plan and advertising strategy; (4) price decision.

For start-ups, due to the low visibility of products and enterprises, it is difficult to enter other enterprises' already stable sales channels.

Therefore, enterprises have to temporarily adopt a high cost and low efficiency marketing strategy, such as door-to-door sales, large advertising campaigns, profit making to wholesalers and retailers, or to any company willing to sell.

For developing enterprises, it can make use of the original sales channels on the one hand, and develop new sales channels to adapt to the development of enterprises on the other hand.

6. manufacturing plan

The production plan in the business plan should include the following: product manufacturing and technical equipment status; new product launch plan; technology upgrading and equipment renewal requirements; quality control and quality improvement plan.

In the process of seeking capital, in order to increase the valuation value of enterprises before investment, entrepreneurs should try to make the production plan more detailed and reliable.

Generally speaking, the manufacturing plan should answer the following questions: how the factory building and equipment are needed for manufacturing, how to ensure the stability and reliability of the new products in scale production, who are suppliers for the introduction and installation of the equipment, the design of the production line and the product assembly, the lead time and resource requirements of the supplier, the formulation of production cycle standards, the compilation of production operation plans, the material requirements plan and its guarantee measures, the methods of quality control, and other related problems.

7. financial planning

Financial planning requires more energy to make specific analysis, including cash flow statement, balance sheet and the preparation of profit and loss statement.

Liquidity is the lifeline of an enterprise. Therefore, when a company starts or expands, it needs to have a detailed plan and strict control in the process of liquidity. The profit and loss account reflects the profit situation of an enterprise. It is the result of operation after a certain period of time. The balance sheet of assets is reflected in the state of enterprises at a certain time. Investors can use the ratio index of the data in the balance sheet to measure the operating condition and the rate of return on investment.

Financial planning generally includes the following contents: (1) the assumptions of the business plan; (2) the projected balance sheet; the estimated profit and loss account; the analysis of cash receipts and payments; and the source and use of funds.

It can be said that a business plan generally outlines the things that entrepreneurs need to do in the process of raising funds, while financial planning is the support and explanation of the business plan.

Therefore, a good financial planning is very critical for assessing the amount of capital needed by venture enterprises and raising the possibility of venture capital obtaining funds.

If the financial planning is not well prepared, it will give investors the impression that managers lack experience, reduce the valuation value of venture enterprises, and increase the operational risk of enterprises. So how to make good financial planning? First of all, it depends on the long-term planning of venture enterprises, which is to create a new product for a new market, or to enter a more existing market with more financial information.

It is impossible for an entrepreneurial enterprise to focus on a new technology or innovative product to refer to the data, prices and marketing methods of the existing market.

Therefore, it has to predict the growth rate of its entry market and its possible net profit, and to sell its assumptions, management teams and financial models to investors.

And ready to enter a risk enterprise with existing market can easily explain the scale and the way of improvement of the whole market.

Venture enterprises can plan their sales scale in the first year on the basis of obtaining the information of the target market.

The financial planning of an enterprise should be consistent with the assumptions of the business plan.

In fact, financial planning is closely related to enterprise's production plan, human resources plan and marketing plan.

To complete the financial planning, we must clarify the following questions: (1) how large is the product in each period? (2) when will the product line expand? (3) how much is the production cost per product? (4) how much is the price of each product? (5) what is the distribution channel, what is the expected cost and profit? (6) what kinds of people do we need to hire? (7) when does the employment start? What is the salary budget?

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Three. Check

After the completion of the business plan, the entrepreneur has to check the plan again to see if the plan can answer the questions of investors accurately and win the confidence of investors in the enterprise.

In general, the plan can be examined in the following aspects:

1. does your business plan book show you have the experience of managing the company?

If you do not have the ability to manage your company, make sure that you have hired a master to manage your company.

2. does your business plan book show that you have the ability to repay the loan?

We must ensure that a complete ratio analysis is provided to prospective investors.

3. does your business plan book show that you have completed a complete market analysis?

It is true that investors believe that the product requirements you outlined in the plan are true.

4. is your business plan book easy to be understood by investors?

Business plan books should be indexed and cataloged so that investors can easily access chapters.

In addition, the information flow in the catalog should also be logical and realistic.

5. do you have a plan summary and put it in the forefront of your business plan book? The plan summary is equivalent to the cover of the company's business plan book, and investors will see it first.

To keep investors interested, the summary of the plan should be compelling.

6. is your business plan book correct in grammar?

If you can't guarantee it, you'd better ask someone to check it for you.

The spelling errors and typographical errors of the plan can soon displace entrepreneurs.

7. whether your business plan book can dispel investors' doubts about products / services?

If necessary, you can prepare a product model.

All aspects of the business plan will have an impact on the success of fund-raising.

Therefore, if you lack confidence in your business plan, it is best to consult the guide for compiling a plan or consult a special consultant.