9 out of 10 business owners run their businesses without a plan. Without knowing what they want or where they are right now. A business plan is a map that will open your eyes and help you see your journey in the past, the present, and the future. You will see it in terms of money, time, and actions to take. There are financial business plans that help you see your economic behavior, there are management business plants that will set activities for you and your team, actions to take, and goals. Everything in business should be measured in terms of money and time.
Management Business Plan
A management business plan is a write-up of how you will run your business entity. It should include the following information:
- Company background
- Project scope
- Quantification of projected benefits or profits
- Identification of potential problems
- Opportunities associated with the proposed venture
Your company background section demonstrates to your reader that you are well organized and have thought carefully about the business you are proposing. It should emphasize your key points, including any entry barriers to your proposed industry and how you will overcome these challenges.
The project scope section is where you have to define what you are planning on doing clearly. This can be simple for smaller businesses, but it may require more detail if yours has multiple parts.
Quantification of Projected Benefits or Profits
This section should include details about your business model and how you will make money, including cost-benefit analyses and growth projections. You may also want to have a separate section for this information if your business plan is very long.
Identification of Potential Problems and Opportunities Associated with the Proposed Venture
This section should briefly describe potential risks and complications associated with your business plan. Your solution to these problems is also something you should include here as an example of how you will handle such situations if they were to arise.
Identification of Potential Opportunities Associated with the Proposed Venture
Lastly, this section should briefly describe any opportunities you can see that you can take advantage of. It should also state how your company will be able to meet better the needs of customers and other stakeholders, as well as how it will evolve in the future.
Although your business plan should be concise and make your aims clear, avoid misunderstandings by using straightforward language and avoiding technical terms.
It would help if you also made your plan as user-friendly as possible by using a standard format for all business plans. Finally, if you are going to submit your business plan to a government agency, you will have to write it in accordance with
the following guidelines:
-Your business plan must be one single document, with each page containing no more than two printed, double-spaced pages.
-Your font type should be 12 points, Arial or Times New Roman. Your font style should be standard (i.e., regular).
-You cannot use underlining or highlight words in your typed text.
-There cannot be any page numbers or cover pages.
-Your margins must be at least 1 inch on all sides.
-Use one space between sentences and no indentations for paragraphs.
-Only the business owner(s) should sign it, or you can include a date in place of their signature if they are unwilling to sign it.
Where to find an example of a business plan?
There are plenty of examples available on websites, but you can also write one yourself. Doing this requires some research and analysis about your company, which you can do by looking at your competition or getting in touch with current suppliers and customers. It will take some time to do all this, but once you have completed your plan, you can revisit it to make any changes or simply continue on with the business as planned.
Financial Business Plan
In a financial business plan, you capture the data of your past months or years and compare it with the last finished month.
Comparing Data To analyze Growth. You must compare equals, meaning that October 2019 with October 2020, or a full year with a full year, to see the growth rate. This helps you see your progress and set a future growth rate. How much are you going to grow in the future compared with how your past has been and set realistic goals.
A business plan in financial terms is like a profit and loss statement of how you predict each field will behave. After the month you predicted has occurred you write down how it went to see if you fulfilled the goal or how much behind it you were.