How to Write a Business Plan For a Small Business

How to Write a Business Plan For a Small

As someone who is about to start a business, have you made a business plan? To start a business, of course, requires careful planning. Without planning, you won’t know where your business is going because you run it without a clear purpose.

Actually, What is a Business Plan?

The definition of a business plan is a written statement that contains the aims and objectives to be achieved from a business. In addition, the business plan also includes short, medium, and long term targets, how you can achieve these goals, including solutions to obstacles that arise later, and others.

A Business Plan is Essential for Several Reasons

Did you know that making a business plan is not easy? Many people fail miserably to compile the business plan. In this case, some people believe that to start a business, just run it without the hassle of a business plan.

1. To Start A Business

The main purpose of a business plan is to design a strategy and initial plan for your business. A new business will be difficult to develop if it is only run without a guide and design.

Therefore, it is important for you to draw up a business plan. That way, your business will be more focused and target-oriented in accordance with the right path to business success.

Make a business plan as detailed as possible. The more complete you make a business plan, the more it will prove that your business is a serious and focused business so that it will be easier to run the business. With a good business plan, your opportunities and opportunities to develop and grow your business will be even greater.

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2. Finding Sources of Funds

The following benefit from a business plan is to bring in investors who will invest in your business. Indirectly, the business plan can become a proposal or document to obtain funding sources. The source of funds here means that obtained from other parties, such as investors, banking, or venture capital.

To obtain funding sources, of course, you need an official document to find out what the description of your business will look like. So you or the entrepreneur must be able to make an attractive business plan.

The business plan must at least be able to answer investors’ questions, including whether the investor will benefit from investing in your business, whether the investor understands your business in which he is investing, and whether the investor can trust you and the people who work in the business where the investment?

With a good business plan, detailed, clear, and not too ambitious, it will attract potential investors. Especially if it is presented with good skills, it can make investors more confident to invest in your business.

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3. Making Business More Focused

A business plan will make you more focused and focused on when running your business. That way, your goals to start a business will be achieved according to the targets that have been set. Your business can flourish.

4. Predict The Future

The next use of a business plan is to predict the future of your business. Of course, when you put together a business plan, you will create a good short, medium, and long term picture of your business.

It is at this time that you indirectly have made predictions or predictions about the business in the future. Although this picture is subjective in nature, with a clear and complete flow it is possible that the prediction will be realized and come true.

For example, Microsoft founder is Bill Gates. He has proven the truth of his prediction which turned out to be started from a business plan concept. Of course, it is not just a plan, it must be supported by research. Because without good research, your business plan is weightless and is likely to slip up.

5. To Raise Business Level

Finally, the use and benefit of a business plan is the opportunity to raise your business level to a higher level. A well-prepared business plan will bring business people enthusiasm to run the business.

If there is already a passion for moving the business, then your business has a greater chance of being able to grow and develop rapidly. Therefore, don’t underestimate the impact of a business plan and prepare to level up quickly.

How to Write a Business Plan For a Small Business?

Below are 8 ways to write a business plan for your small business.

1. Brief summary

This brief summary contains information related to your business. Vision, mission, and business goals and targets to be developed. What products or services do you sell to consumers. Make it interesting so that your business plan attracts and sells.

2. Business Background

The business background tells about the reasons for establishing the business, the people involved in it, such as investors or shareholders, organizational structure, a list of consultants or experts, and others related.

3. Business Production Analysis

This section contains an explanation of your business operating system. From upstream to downstream are explained.

For example, your business is engaged in production or manufacturing, you need to describe how the process starts from taking orders, producing goods, to distribution. Likewise, if you are engaged in services, how do you deliver services to consumers.

4. Labor Analysis

Don’t forget to enter the details of the workforce needed, such as competencies and skills, the number needed.

Don’t underestimate the detailing of the workforce requirements of your business, because the right allocation of human resources is one of the determinants of the success of your business.

5. Marketing and Distribution Analysis

You also need to analyze the marketing and distribution of your service products in a business plan. Targeted market targets, emerging market trends, including marketing strategies that will be implemented to achieve sales targets.

The distribution process and strategy must also be included in the business plan so that your product or service can be enjoyed by consumers.

6. Financial Analysis and Return on Capital

It is important for you to include projections of income and expenses, calculation of when the capital can return, return on investment to investors, and everything else related to the flow of money must be included in the business plan.

7. Business Expansion and Development Plans

Investors will usually highlight one important thing in a business plan, namely business expansion and development plans. How serious are you in developing the business, what will be done, and what business development strategies are?

8. Business Risk Analysis

It’s called a business, there must be risks, including your business. There are various business risks that may arise in the middle of the road, namely operational risk, financial risk, risk during production, and so on. This analysis is not only about identifying risks, but also your strategy in dealing with the impact of these risks.

Create an Optimistic But Realistic Business Plan

In preparing a business plan, you must remain optimistic that the business you are starting will be successful. Set realistic and measurable targets so that the business can run well.

Don’t be too ambitious or lofty, and ultimately use whatever means possible to achieve it. good luck

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