Whether your business idea is selling jewelry, gardening services or pet grooming, a business plan is a great way to demonstrate the potential success of the idea. A basic business plan will guide you through the feasibility of an idea, structured to reflect your goals and specific to the audience that will read it. If you are looking to start a business, or expand an existing business, you can start with a basic business plan that will sharpen your focus and serve as the first step to business success.
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Method 1 of 3: Setting Goals
Step 1. Determine the main reason you need a business plan
A business plan has multiple objectives, and if you go over each one, the results will be longer, more detailed, and more complex. In the early stages, you should define your main goal of writing the plan. There are several factors to consider, such as the feasibility of starting a business in a particular industry, identifying an operating plan, finding ways to communicate business ideas with potential customers; or obtain business funds. These reasons will help you focus on writing a basic business plan that will answer some of the most important questions about your business.
Step 2. Consult with your business partners
If you are starting a business as an individual, you may not need this step. But if you're working with other people, you should ask for their input and collaboration to write a business plan that fits everyone's interests in mind.
Step 3. Understand the uniqueness of your business
No two businesses are exactly the same, nor are no two business plans the same. Understand and know what is unique about your business, about your product or service, customer base, approach, to your marketing. This will help your business stand out and become more attractive to customers and, in the long run, be more successful.
Step 4. Understand the type of business on which to write your plan
Are you starting a new business, or are you expanding an existing business? Most of the approaches to writing a business plan for both are the same, but there may be some important differences. With a business already running, you have a clearer idea of the market, sales, marketing and so on. You can include solid supporting evidence with your business plan. With a new business, these elements may be more speculative.
Step 5. Select the format you will use
The more basic and concise your business plan is, the less text you will need to write. Instead of long, detailed paragraphs, just use bullet points. Some formats only contain 1–4 pages, while very detailed plans can be more than 50 pages. A shorter, more basic plan will get straight to the heart of your business. Short plans also tend to use simple terms so that ordinary people can easily understand them. There are many examples on the internet of all kinds of business plan templates.
- Most business plans have some combination of the following sections: executive summary, company description, market analysis, product or service description, marketing approach, financial projections, and appendices. Once you know more about what can be included, you will be able to make decisions about what is relevant to the business plan.
- Some business advisors believe that what small businesses need most at first is a very simple questionnaire to find out the basic aspects, or "internal work plans": what the product or service is, who the customers are, what the timeline is, and how the business handles payments. bill and get paid.
Step 6. Find out the audience for your business plan
A business plan can be read by several people. Often, business plans are written for investors or credit officers who need to quickly and thoroughly understand the nature of your business and plan for success. This shows that you have thought about important questions such as marketing and financial aspects that will contribute to your ability to repay loans or create a profitable venture for investors.
Investors and bank credit officers tend to want to see a more formal and professional business plan, which reflects careful planning and forecasting. If you are looking for a business partner or other interested party, you can choose to better describe your business and ethos in it. However, we recommend that you choose a professional approach when drafting a business plan
Method 2 of 3: Writing a Business Plan
Step 1. Write a simple and to-the-point business plan
Avoid using too much jargon or wordy explanations. Keep your writing short so you can get your point across quickly and concisely. Replace some long words with shorter ones and complex words with simple ones, such as replacing "use" with "use". You can use bullet points to make it easier to understand.
Step 2. Write a company description and describe your product or service
Explain about your company, including how long you have been operating, where your business operations are, your achievements so far, and what type of legal entity your company is (sole proprietorship, limited liability company, etc.). Describe the product or service you offer. What is unique about your product or service, and why do customers need your offering?
- For example, you might write: "Wafer Soya Anak Nusantara (WKAN) is a limited liability company registered in the Special Region of Yogyakarta, which will provide healthy and quality packaged food to schools in Sleman Regency. Founded in 2008, WKAN has received various awards, including the Best Small & Medium Enterprise Award in Sleman Regency and Best Snack Food from Food and Health Magazine. Our soy wafers are made from all natural ingredients from the local area and are a healthy food for local children".
- You may also need to include your company's goals or objectives, so that readers will better understand why you're in business and what you want to achieve with that business. You should really include this section if your company is a non-profit organization, because nonprofits are based on vision and mission. The goals and objectives that underlie your decision to move on a nonprofit basis will be communicated to the funder or other advocate.
Step 3. Present market research and outline your marketing plan
This section describes the industry or market you are in and how you plan to bring your product or service to your customers. How big is your market size, in terms of population and sales potential? You need to have a solid argument explaining why your product or service will be an accepted addition in the market, and meet a customer's currently unmet needs. Describe your target customer, describe their demographics and potential to buy your product or service. Include information about competitors, either directly or indirectly. Then explain how you plan to price your product or service, reach customers, expand services, and promote the business.
For example, you might write: "The proposed market for Nusantara Soybean Wafers covers all public elementary schools in Sleman Regency. There are 403 schools with a total of 72,000 children. About 67% of these students buy school lunches." Continue to describe your customers, potential or existing relationships between you and your customers, competitors, and so on
Step 4. Talk about the unexpected
While you want to stay positive about the potential success of your business, you need to think about some situations that might put your business in trouble or even failure. Think about how you will address any problems that may arise, such as a decrease in the number of customers or the loss of a key supplier. If there is a certain part of your business plan that may not go well, estimate what it is and how you will deal with and accommodate the shortfall.
For example, you might write: "We rely on locally sourced ingredients for this soy wafer product, and our local suppliers rely on favorable weather and environmental conditions for planting and harvesting. If Yogyakarta faces conditions such as pests or severe drought, cause crop failure, we may need to expand our supplier list to Central Java, West Java or East Java. However, we will prioritize working with suppliers based in the Special Region of Yogyakarta"
Step 5. Provide information about key people in your business
A good business plan not only describes the business and its services, but also the people who run and operate the business. Include a description of the key people involved, their role in the company, and the background and suitability of those who contributed to the effort. Include their resume in the attachment to your business plan. If you are a single character, no problem. Give yourself a title and write a brief bio that emphasizes the relevant experience that made you ready to run this business idea.
For example, you might write: "Director Larasati Sartono has twenty years of experience working in a highly respected bakery in Yogyakarta City. He studied at a culinary school in Australia and also has a degree in Environmental Science from Gadjah Mada University"
Step 6. Provide a financial picture of your business
The financial picture has several different components. You must provide an overview of the financial viability of your business through financial projections (projected income, costs, profits), as well as funding or investment strategies. The financial information you include in a basic business plan need not be too detailed, but should include a good indication of the potential financial health of your business.
- Provide figures for revenue and expenses. To calculate revenue, base your sales forecast on the price of your product or service and how many customers you plan to serve. Forecast sales over the next 3-5 years. You may need to make a smart guess at this point, as it's hard to really say for sure how many units you will sell or how many people you will serve. We recommend that you choose a conservative guess. Expenses will include fixed costs (such as salaries, rent, and so on) as well as variable costs (such as promotions or advertising). Think about the costs of starting a business, operating a business, recruiting and retaining staff, paying for advertising, and so on. Also include expenses such as fees for services, permits, and taxes. Also consider the assets and liabilities that you have, assets can be property or equipment while liabilities can be loans that you receive to run a business.
- Include a funding or investment strategy. If you intend to use a business plan to raise funds, this section will be very important. You have to know exactly how much money you want and how to use it. For example, you might write: "Wafer Soya Anak Nusantara requested an investment of IDR 250,000,000 to support the expansion of our current production area, with the following details: IDR 100,000,000 will be used to rent additional space at our current location, IDR 50. 000, 000 for additional equipment (two ovens, assorted utensils), and Rp. 100,000,000 for the salaries and costs of recruiting several additional employees to fulfill our contractual obligations with a public elementary school in Sleman Regency".
Step 7. Add supporting materials
You may need to include additional supporting material, depending on your business and level of detail in your plan. Some of the materials that might be included are: tax returns, balance sheets, cash flow statements, contracts, letters of intent, resumes or curriculum vitae of key management, and so on.
Step 8. Write an executive summary
This section is written last and should be no longer than two pages. If you are writing a very short business plan, your executive summary may be only one paragraph long, or it may not be included at all. The executive summary is basically an overview of your company, your uniqueness in the market, and a brief description of the product or service you plan to sell. You will also need to include an overview of your financial projections, including estimated revenues, profits, and costs for the next five years. If you are looking for funds, you should also outline this briefly, explaining the exact amount of money you want and how it will be used.
Step 9. Arrange them together
Each of the above sections is a mini-essay that contributes to the overall picture of the business. You should create a professional-looking business plan by arranging all the sections in one document with a consistent format, headings by section, and a table of contents with page numbers. Read it a few times and check the spelling and grammar. You certainly don't want any mistakes as that will reflect how well prepared and organized you are.
Do not use more than 2 kinds of fonts (font). Too many fonts can interfere with the visual appearance. Also, make sure the letters are legible by using a size 11 or 12 font
Step 10. Don't rush
If you're in the stage of writing a business plan, you're probably very excited to get your ideas rolling right away. However, you should still take the time to think about the possibilities and possible outcomes. This basic business plan may be able to help identify problems before the business starts so you can avoid them. The plan also sets out a map of the path you can take to keep you focused and not straying. The time dedicated to putting together a business plan, even a basic plan, will be a valuable investment of time.
Method 3 of 3: Asking for Help
Step 1. Ask for help developing a business plan
Many agencies, nonprofits, small business administration offices, and employment offices hold frequent seminars on how to write a business plan, develop a marketing plan, and make financial decisions. Organizations typically staffed by volunteer business professionals or former executives may also be able to provide valuable advice and feedback on your plans. They may be able to provide pointers on resources you can use, such as resources to do market research for your business.
Step 2. Seek professional advice on specific sections
Some parts of the business plan may be confusing or you may not be familiar with, such as finance or marketing. Consult with someone who has expertise in that area. Even if you are developing a basic business plan, you should have some ideas on how to address the elements that are still unclear. The finance and marketing sections, for example, are usually very confusing but very important to your overall plan.
Step 3. Ask friends or family to read your plan
What makes sense to you may not make sense to someone else. Ask for feedback from your friends and family to ensure that your business plan is clear, concise, logical, informative and convincing.
Tips
- As it develops, this business plan should be reviewed, and developed again to accommodate changes in your business. It is important to take into account changes in the business, financial projections, changes in the market or industry, and so on.
- When you are ready to share this business plan with investors, do not send them the entire plan. You must submit a request and arrange a meeting in sufficient time to discuss the possibility of building a partnership. You might also consider bringing a confidentiality agreement to be signed by investors, which will protect you from those who try to steal or adapt your ideas for their own use.
