create a business plan

create a business plan

How to Create a Persuasive Business Plan

1. Executive Summary

This session is important because a business plan is a way to an end, not the end in itself. A business plan is a tool which you can use to persuade others to provide you with what you want. For example, the strength of the management team is critical to investors, and if you are seeking to entice capital via debt or equity financing, it is to your advantage to prioritize the experience of your management team. At this point, saying that you have an MBA and 10 years in the field is far more compelling than stating that you are experienced. A business plan is the only means with which you can be taken seriously by investors to begin with because you have something to lose should your plan fail. The only way an idea can make any progress is through implementation, and the fact that the business plan is a written document sets out an implementation strategy for a certain period of time. Because most high-growth companies have large time lags and face long run rates of return on investments, it is the only way to plan for the future in an uncertain economic climate. The business plan is a working document in that you can always come back to it to make sure you are on the right track, and if you are not, you can always change the implementation strategy in hopes of getting the results you desire.

Creating a persuasive business plan can be a challenging task, especially if it is a new business requiring startup capital or an established company launching a new product. The business plan is the key ingredient for a successful business and is often ignored. This session shows how to create an individualized business plan and provides the tools to generate a business plan that is right for you.

2. Market Analysis

Section 5 will be used to assess in more detail the marketing data and conclusions presented here. This section of the analysis will focus on the size of the market, the growth of the market, the profitability of the market, the number of rivals, a summary of rivals, and the buying behavior of the consumers in the market. With a detailed market analysis, the business will be better equipped to deal with the uncertainties of the market and changing market conditions. It will also enable the business to select the most suitable marketing tactics for the wants and needs of the consumer.

This section should illustrate your knowledge about the particular industry your business is in. It should also present general highlights and conclusions of any marketing research data you have collected. However, the specific details of your marketing research should be moved to the appendix section of your business plan.

3. Business Strategy

A good strategy will allow you to more easily understand which opportunities to take and which to turn down. It will allow you to more concisely choose which activities to take part in and which to not. Having a clear strategy will also allow you to set more achievable goals and objectives as you will have a clearer understanding of what can be done given your capabilities. In setting these objectives, a company will also be able to make better-informed decisions on the allocation of resources. This, in turn, will improve coordination and consensus on the objectives being sought.

Formulating a successful business strategy is a delicate matter, but it’s important to understand that a business strategy and a business model are different. A business model is the mechanism by which the company generates its profit, while the strategy is the plan or method by which the company achieves its goals. Given the complexity of the business environment, defining a business strategy is perhaps even more important than crafting a business model.

Business strategy is a very important part of any business plan. When we look at business strategy, we need to consider the following: who we are, what we do, and why we are here. Defining these three things about your business will help you create a framework for your business strategy.

4. Financial Projections

The heart of a business plan is the financial projections. The dictionary defines the former as a plan and the latter as something that is forecasted. So a financial projection in a business plan is the entrepreneur’s estimate of the company’s future in terms of finance. It is an attempt to “quantify” the business, in other words to make an educated guess as to how successful the company will be. The first part of financial projections is the estimates. This includes the revenue predictions. This is an important number to calculate. It is the money that the company will earn for a certain time period. Revenue is calculated by multiplying the price of the product by the amount of it that is sold. Next is the estimate of the expenses. These are the costs of doing business and are subtracted from the revenue to find the net income of the business. This is what the company will earn before any forms of tax. The net income determines the success of the business and how profitable it will be. The final part of calculating estimates is the cash flow. This is the net increase in bank accounts. It is calculated by subtracting the expenses from the revenue, it is when revenue and expenses are matched up to find a certain income or loss and it affects the net income and predict future debt and the ability to pay off its debts. All of these estimates have to be based on assumptions. An assumption is a prediction of something in the future based on experiences in the past and the present. These can be things such as the amount of products to be sold, or the price of a material and they have a great affect on the estimates.

5. Conclusion

A persuasive business plan will increase a company’s chance for success. It will allow them to persuade others with their ideas. Creating a great business plan is a continuing process. The company looks at where they are now and sets an anchor for where they will be in the future. Often, the business plan will help them get there. Although developing a strategic business plan may seem like a difficult project, it can be quite easy if done step by step. By making the plan a series of steps and tasks, tying in the strategies and tactics, it provides a roadmap for the company to follow. A well-thought-out plan is usually detailed. It focuses on the company’s future and how to achieve it with the current situation. It also provides specific ways on how the company can accomplish its goals. Though at times, the company may need to revise its business plan according to its target audience (St. Thomas). The business plan is important in predicting direction and providing clarity. It can build conviction in the employees as well as prepare for alternatives in case of changes in the company’s focus.