How To Write A Business Plan

How To Write A Business PlanGoing to start a business! Should I start it with a partnership firm, a proprietary firm or directly a Pvt. Ltd. one? This is the thought that would be coming in your mind. For that, first of all, you should have a very robust business plan. This business plan is the roadmap to success. Here, you might think that how to write a business plan that clearly explains the goals and objectives of the company. Not only defining your goal is important but, your business plan must go further and define the well thought out strategy to achieve that goal. You must also devise the steps that leadership will use to follow and successfully accomplish the goal. This plan will establish who we are, where our business will reach from now and how we will reach there.

A business plan is necessary not only for a start-up company but , even well established firms can use a well laid out business plan that the management can use as a guiding force in achieving different needs and goals. Whether it is a newly born company or an established one, every entity can use Business plans to determine the direction of the company. Certain functional areas viz. marketing and operations are examined by using business plans. Business plans are also helpful in reviewing certain product lines or specific problems. They are used to evaluate not only the current direction but the proposed direction of the company, division or new product line etc. Optimization of growth and development of the company is the other purpose of using business plan; this is where knowing how to write a business plan becomes more important. Expansion of market reach, arranging capital to start new company or venture, launching new product lines-all of them require good business plan.

If we consider, what is a business plan, than we have to under stand-what is a Business and what is a Plan before considering how to write a business plan?

We should consider first the term Business-Business is the kind of an entity or activity, without considering its scale and size and type of autonomy it enjoys, normally engaged in providing products and/or services to collect financial/commercial gains, which is extended up to non commercial organizations who may or may not be earning profits.

Similarly Plan means: this is a kind of intent to achieve an outcome by organizing efforts and resources with the help of calculated financial and statistical data.

So, a business plan rightly becomes a very general and flexible term which applies to a commercial/non-commercial entity or group or an organization where activities are aimed on getting results. Some examples are: Multinational corporations, Pubic center undertakings, schools, charities etc. Business plans which are written on any business unit or department of any big organization generally don’t include the financial data other than the concerned department. Therefore, you can say in your how to write a business plan detail that most of the business plans are an effective marketing plan of a department or organization.

Find out more about How to write a good Business plan and read about How to write an executive summary