Writing A Business Plan : The Primary Communicator of Your Business
Writing a business plan is a very important task for all businesses, both new and current. It acts as the main and primary intermediary between the business’s owners & all internal and external stakeholders. For example, if a business wants to obtain funding and financing, the only method for it to reach and gain investors’ interest, such as banks & financing institutions, is by presenting a convincing well-written business plan. Writing a business plan is the last task in the second step of the entrepreneurial process, as per Entrepreneurship 2016 Book, the second book in your channel Management with Merits – Manage to Prosper. We have introduced this book in a previous video, as well as finished discussing the 1st step (part) of it (Deciding to Become an Entrepreneur) and the 2nd step (part) – Developing Successful Business Ideas – by taking today’s session, which concludes all its tasks (chapters). To download the associated presentation (PDF) with this video, kindly go the video at our YouTube Channel and click on the appropriate link in the description section below the video.
Concept & Purpose :
The book defines business plan as a document of about 25 to 35 pages that explains the purpose of the business and the way of doing it. As a result, there are two reasons or purposes for it, which make out its internal & external importance, as per the below shape. As a result of these reasons, the book states that the best time to write business plans is before the business starts its actual activity or operations, given that the business plan presents the ideas in a form of systematic & viable written business plan that can be implemented effectively.
Types of Business Plans :
Despite the point above regarding the best time to write business plans, this document must be prepared by all businesses, including current ones that don’t have it. The unfortunate fact that the majority of entrepreneurs don’t have business plans further emphasizes this point. Besides, the business plan is not a rigid document that can’t be adjusted. On the contrary, it should be flexible in a manner that it can be adjusted and changed depending on the changes in trends and environment. That’s why most experts recommend revising and changing (if required) the business plan whenever a major change occurs or at least annually.
In addition to the above, the book states that the full business plan of 25 to 35 pages is only a guide and complete arrangement of business plans that can be applied or adjusted to any business depending on their nature and situation. Thus, each business must focus on the points or ideas that suit their condition and environment, focusing on the key matters that explain their businesses and how they are done. In the below shape, the book provides three different types of business plans.
Components of Business Plans :
Writing a business plan requires a lot of rigor, effort, dedication and hard-work. It should be done by a business or entrepreneurial team that consists of the founders and other needed experts. It also needs systematic research, investigation, data collection & analysis. In fact, all the tasks that we have discussed before in Entrepreneurship Book 2016 require these efforts, such as opportunities & ideas, feasibility analysis, business model, and industry & competitors’ analysis. Therefore, the business plan encompasses the final overall results of all of these efforts in a detailed and organized manner. Besides, it includes other points or sections necessary in describing the business and how it is done.
The book provides an outline or template for writing business plans, which includes the primary and secondary components of it, as per the below shape. The plan starts with the cover page that usually includes the venture’s name, logo, address and contact details. After that, there is the table of contents, followed by 11 sections with their subheadings; the most important of which is the first one (executive summary), given that it provides interested readers with key information about the business and helps them decide whether to go further with considering the rest of the business plan or not. That’s why businesses usually make two copies of the summary, stand-alone and embedded. Finally, the plan ends with the appendices, which are documents that don’t nicely fit within the body of the plan, such as the detailed profiles of the founders.
Highlights on the Effect of the Channel’s Contents on Understanding & Writing the Business Plan :
The channel’s content is extremely cohesive and coherent in a manner that serves its overall mission of: “Manage to Prosper”. Thus, it equips its followers with the competencies and skills to understand and fill out the business plan. First, contents and discussions of Entrepreneurship Book 2016 are the most important sessions for that purpose. Second, our first book in the channel (Management 2015) helps followers to understand and fill-out the 9th section of the plan (Management Team & Company Structure), which is the 2nd most important one after the Executive Summary. Obviously, interested stakeholders, especially investors and funding agencies, care mostly about this section to gain satisfaction and trust on the managerial and entrepreneurial abilities of the founders and management team and their competency in turning this plan into a successful project. To access all our sessions for this book, kindly click here. Third, future books and topics to be discussed in the channel do serve this purpose. Below we provide three examples of three different future books that serve this purpose, along with the business plan’s sections that they can help in understanding and filling them out. For more information about the channel’s services, including the books discussed, please click here. Also, please watch this video at our YouTube Channel to know some of the books that the channel will discuss.
That was our discussion for today. Thank you so much for watching and following us. This is the last session in the 2nd part (step) of entrepreneurship. Next session, we start with the next third step (part) which is Moving from an Idea to an Entrepreneurial Firm. In specific, we will start with the first chapter in that step (part), which is preparing the proper ethical and legal foundation. Watch and follow us each Thursday on your channel Management with Merits – Manage to Prosper. Please support your channel strongly so that it can continue its glorious mission and services. Subscribe to the channel in YouTube and activate the notifications bell there. Follow us, participate with us and share the channel and all its electronic contact platforms.