You have already developed and described your business development strategy. Now it’s time to calculate everything in detail. A step-by-step guide from a case study writer by Bidforwriting on how to make a business plan will help you do this.
A business plan is a detailed description of your project with calculations and a perspective for the next few years. Potential investors or the bank you will go to for a loan, partners, intermediaries, your team, and ultimately you as the creator of the project all need it.
A business plan is usually written three to five years in advance. But you can also take a year since economic conditions change rapidly.
A business plan includes a description of the product or service, a market analysis, a production plan, the organizational structure of your company, a marketing strategy for product promotion, and a financial plan that summarizes all major calculations. The business plan must necessarily answer the questions: how much money is needed to launch the project and in what time frame will it pay off?
- Summary.
The summary stands at the beginning of the business plan, but you will write it at the very end. This is a summary of the entire document – the conclusions you will draw based on detailed calculations. After reading the summary, investors will decide whether to study your plan further or not to waste time on it.
This paragraph includes a brief description of the project and its competitive advantages, and information about potential customers and partners. Tell how you are going to sell your product or service and how to advertise it. Specify how much start-up capital you need and where you plan to get it. Describe the key stages of the project and be sure to give a payback period and planned profitability.
Consider how to make a business plan by the example of online store chocolate with delivery in a small town. Unlike peers, in this store, the customer will be able to choose the original filling, design, and packaging. For this purpose, there will be a special constructor on the site.
- Description of the product
In this section, you should describe in detail the service or product you offer and analyze its potential.
You can compare your product with similar products and suggest ways to improve your product.
- Market analysis
From the business strategy, you have already developed, transfer the market analysis to your business plan. Competitors’ offers should be considered in even more detail.
In the case of an online chocolate store, competitors will not only be online candy stores, but also candy stores, gift stores, supermarkets, and private craftsmen who make custom-made sweets.
Supermarkets. There are five large supermarkets in your city with a wide variety of chocolates. They account for 55% of chocolate sales.
Candy stores. There are 50 candy outlets in the city, 5 of which sell online. 10 of them sell only chocolate and only 1 of them has its own website. 25% of the market by sales volume.
Original gift stores. 30 online gift stores. 10% of the market by sales volume.
Private online sellers. About 20 profitable private sellers. 10% by sales volume.
Based on the analysis, make a conclusion: what market share you can claim.
For example, you expect that in the first three years of operation, your online chocolate store will take a share of 35% of online sales of chocolate in the city.
- Characteristics of Potential Customers
Describe in detail who you are targeting to whom you will offer your product or service. The answer is “Everyone” – wrong. It is like firing a cannon at sparrows. During the business strategy phase, you should have identified your target audience.
Suppose, for an online store of original chocolate, you chose original customers. They like non-standard things and should appreciate the opportunity to make chocolates according to their own taste and design. You estimate the share of these users to be 20% of those who buy candy online. This should ensure the sale of 2,500 chocolate bars a month in a year after the launch.
- Production plan
To calculate the cost of production you need to estimate:
direct costs of production or the purchase of raw materials and packaging from a supplier;
the labor remuneration of employees per unit of product;
indirect costs: rent of premises and equipment, utilities;
advertising and promotion costs;
The financial costs of servicing a loan or credit.
- Promotion plan
The goal of promotion is to successfully bring the product to market and capture its share of consumers.
The promotion plan answers the questions:
What offer to make to the customer?
It includes not only the price of the product itself but also additional services such as free shipping, discounts, and special offers.
What sales channels to use?
This can be not only direct contact with customers but also with partner channels.
How do you stimulate sales?
You can introduce bonus programs, discounts for regular customers, and customer cards.
What kind of advertising support should be chosen?
You can use direct advertising, participate in partner events, prepare articles for popular online resources, sponsor contests in social networks, and so on.
- Organizational Plan
Specify which units it will include, who reports to whom, and make up a staffing schedule: a list of the necessary specialists with their salaries. It is important to define their responsibilities and the order of interaction between departments.
For the online store, chocolates are all easier: you hire employees to work remotely. Your main labor resources – a website developer, copywriter, operators on the phone to take orders, couriers, accountant for one-time work. In the first few months, while sales volume will be small, you can make your own chocolate, take and deliver orders – and save money on this.
If you plan to involve partners in the production of goods or buy a finished product for resale, for example, along with chocolate will sell postcards, also include them in the organizational plan. Describe the terms of cooperation.
