A business plan is a written document that outlines in detail how a company defines its objectives and how it intends to achieve those objectives. A business plan is a documented roadmap for the company's marketing, financial, and operational goals.
To write up the business plan, it is important to study the main aspects of your business that are summarized in the following 3 steps.
Step 1: Understand the market
To operate a successful business, you must first educate yourself about your consumers, competitors, and industry. Market research is the process of evaluating data to determine which products and services are in demand and how to compete. Understanding the market can be simplified by identifying the following:
- Market size: Before establishing a new product, knowing the potential market size may help you determine whether it's a good investment of your time and money. You need to reach some data as to how many individuals or businesses make up the market you are trying to reach.
- Competition: Competitive research is an essential component of any effective strategy. Understanding what your competitors are doing can assist you in positioning yourself and your product or service inside the market. Make sure that all direct and indirect competitors are identified, how you intend to compete with them, and how their response to your market plan could be. Some questions to ask yourself: Who else is offering solutions to your consumers' needs? What are your competitive advantages over your competitors?
- Positioning: Positioning refers to how you want to portray your firm to your consumers. Are you the low-cost option or the premium luxury brand in your market? Do you provide anything that your competitors do not? Before you begin working on your positioning statement, answer the following questions:
- What distinguishing characteristics or benefits do you provide that your competitors do not?
- What are the most important demands and desires of your customers?
- What are your competitors doing to differentiate themselves?
- How do you want to distinguish yourself from the competition? And why should you?
Step 2: Understand the product or service
Your business plan's products and services section describe the features and value of your product or service, why your customers need it, and how it is different from existing products and services Here are a few tips to create the product/service section in your business plan:
- Explain why your product or service is required. You shall explain the necessity for your product or service, especially if you are introducing a new concept to the market.
- Address the benefits of your product or service. The capacity to differentiate yourself from other companies that provide the same or comparable products is critical. What distinguishing qualities do you provide? e.g., lower price, more durable product, better customer support, etc.
State all the included features and how those characteristics provide value to consumers
Step 3: Forecasting
Forecasting refers to the methods and strategies used to forecast sales, expenses, and profits. Historical Data is collected and evaluated using quantitative or qualitative models to identify trends that may be used to drive demand planning, financial operations, future production, and marketing activities. You should make sure that your forecast is at a minimum of 3 years. The forecast should include a brief description of the major assumptions used:
- Cost of sales
- Capital Investment
Step 4: Analyze the data and fill in the Business Plan
Synthesize the data gathered from the previous steps, and fill in the BP template.
Joanna wants to open a motorcycle shop that caters to new bikers. She knows that sometimes new bikers are inexperienced and do not know which bikes suit their needs in terms of horsepower and cost. Joanna conducted the 3 steps of understanding the market, understanding the product, and Forecasting.
Afterward, she gathered her insights into the main building blocks of a Business Plan:
We offer convenient motorbikes and moto equipment for new riders.
Problem Without Solving:
Buying motorcycles and biking equipment is challenging for new bikers.
A new-rider-friendly garage that sells biking and guidance from experts.
Youth aged from 18 - 30, who reside in the city center where bikes are commonly used and who are interested in travel and adventures.
- Traditional Garages
- Online retailers
- Social Media
- Brick and mortar retail
- Partner with OEMs
- Social Media campaigns
- Partner with youth networks
- Bike Sales
- Accessories Sales
- Repair & Maintenance
- Technicians’ Salaries
- Garage Rent
- Stocked Accessories
- In year 1: Open one garage location and serve 2000 customers, reaching $50,000 of revenues.
- In year 2: Open second garage location and serve 6000 overall customers, reaching $200,000 of revenues.
Click on the attachment below to download the business plan template