Entrepreneurs may think that learning how to build a business plan is a tedious undertaking and that it should be a massive hundred pages long file.
However, this document must be as much concise and brief as possible, though it must contain relevant and strategic information to guide important business decisions.
There are no stiff rules to write an effective business plan. In fact, the two fundamental factors to proceed with it are providing complete and relevant information and describing clear orientations based on solid business knowledge.
Next, we’re going to introduce you to six simple steps on how to build a business plan that will lead your company to success. Keep reading!
A business plan is a document that works as a map to guide right actions and decisions based on strategic data and on a preview research on the company’s segment. It helps to prevent mistakes, and to guide managers and collaborators towards making the right moves to achieve business goals.
Now that we’ve cleared that up, here they are: the six steps to build an effective business plan.
To build a business plan, you must have a clear view of your company’s mission and goals, learn about the brand’s segment, and choose the right tools and resources in order to put the project into practice.
In short, follow these six steps below:
However, it is important to note that building a business plan is a dynamic undertaking. As a company grows and the business’ environment changes, a business plan needs continuous updates and adjustments.
The first step is to gather the required motivation to start a short and mid-term planning for your business. This process entails reflecting about the business core and the inspiration behind the project.
But before that, make sure you have a plain view of the following business plan components:
The next step is understanding how the process really works:
To start with, take a look at the business plan document as a whole and don’t forget any sections you want to include in it.
The SWOT Matrix is an excellent tool to support you at this stage, as it helps you to identify the opportunities, menaces, weaknesses and strengths of your business project. This overview will allow you to create a more effective plan.
Next, you must track the business development. Take notes, make observations and register all questions and impressions along the way.
Also, you must take a moment to study your competitors and the way they execute their actions. For example, how do they communicate with their target audience? Are they achieving their main commercial objectives?
It’s time to start writing your business plan! You should begin with a deep market research and gather data and information about your business segment. For example:
And the list goes on…
By doing that, you’ll be able to identify if your competitors are making mistakes and which are the market gaps that you can fill with the solution provided by your company.
The fourth step of how to build a business plan consists in reviewing the business viability. At this point, you must certify if your project is really worth the investment you want to make.
You must begin by defining a model that will support the business opportunities you’ve encountered in the previous steps. Thus, you’ll know how to develop a company able to earn profits and get the job done!
In practice, this means it’s time to plan your operational, marketing and financial strategies. According to your previous research about the brand’s market and target audience, what relevant data did you get?:
The answers to these questions must be fully integrated with the global business plan motivations and goals.
For instance, if you choose boosting Facebook ads in order to earn paid traffic, this decision will affect the financial and operational department’s budget.
If you want to learn how to build a business plan, you’ll also have to create a brand visual identity and explain the purpose behind the graphic choices you’ve made.
An attractive, effective and beautifully designed visual identity not only distinguishes your brand from the competitors, but it also helps you to prospect and retain more clients.
This stage guarantees that your prospects, leads and clients will easily identify the brand by:
They can help you out with the brand’s logo, personalized social media content and exclusive business cards.
Does it look odd to finish the business plan with a retrospective summary of your project processes, tasks, objectives and goals?
It may so, but this synthesizes the company’s values and provides two special outcomes for your business success:
This last step is the culmination of the business plan and a natural transition to the next one: gathering the fundamental resources and then executing the tasks predicted on the document!
The next step to successfully building a business plan is taking a look at STRATWs One. This is a cooperative management performance software capable of unifying the personal, strategic and operational processes toward the best results!
This platform will help you to build a business plan that is really worth your investment. This is the kickoff you need to take your company to the next level of performance. Ask for a free demonstration of STRATWs One: