A business plan is a written document that sets out in detail, the objectives and goals of a business and how the business intends to achieve those goals and objectives. It is like a road map or guide to the business concerning its marketing, financial and operational goals.
Business plans are usually prepared by new businesses, however, it is proper for every business, whether new or existing, to have a business plan.
Why is it important to have a business plan?
- It helps business entrepreneurs to focus on the specific steps necessary for them to make their business ideas succeed.
- You need a good business plan to create an effective growth strategy.
- It helps in attracting investors to your business, whether angel investors or lenders.
- A business plan is a way to show the public that you are interested and committed to building your business.
- It helps you as the business owner to understand the industry better as well as your competition.
What are the contents/elements of a business plan?
A sound business plan would have the following contents:
- An executive summary, outlining the business and its mission statement and brief information about the business’s operations.
- A market analysis, outlining the competition in the industry along with their strengths and weaknesses.
- A budget, including staffing costs, marketing expenses, and any other business-related costs.
- A marketing strategy, highlighting how the business would reach, attract and retain its customer base.
- Financial planning, showing future projections, targets and estimates, and any other financial information presented in the form of financial statements.
- Business products and services, describing the products and/or services that the business intends to specialize in.
How then can I write an effective business plan?
This section of the article sets out the step you should follow to develop a sound business plan:
1. Develop your executive summary-
This would be the first page of your business plan. It briefly describes the products or services you offer and broadly summarizes your plans for financial growth. This is the first thing the prospective investor would read, hence it should be captivating enough to secure the reader's attention.
2. Give a detailed description of your business and your business goals-
This detailed description would include your registered business name, business address, and the names of the key people in your business. You should also the structure of your business and the nature of your business.
You also need to state what your business is set to accomplish and how the funds you require would help accomplish these goals and objectives.
3. Describe the products and services of your business-
This is an explanation of how your product/service works, its pricing model, your target customers, and your sales and distribution strategy.
4. Do your market research and outline your marketing and sales plan-
This is where you explain your business competitors and what they do and also explain what you do differently from them that sets you apart from the competition. You would also need to describe the plan you have developed to persuade prospective customers to patronize your business.
5. Perform a business financial analysis and make financial projections-
A business financial analysis may not be so necessary if you are just starting your business, however, your financial projections are very important. It outlines how your business will generate enough cash and profits to repay any loans or sustain reasonable returns on investment for investors.
6. Include an appendix-
This is where you include any other relevant information which you couldn’t fit into other parts of the business plan. These may include bank statements or credentials of your key employees, contracts, and other licenses.
Conclusion
An effective business plan would help you in determining your business’s financial needs, attract investors and partners and better understand your competition and customers.
Because of this, you would need to showcase your expertise when drafting your business plan.
SmartSMSSolutions is here to assist your business in better understanding your customers through Bulk SMS. We can also our assistance and support in helping you create your business plan.
To register with us:
- Visit smartsmssolutions.com, and click on ‘create a free account’. You may also click here to create an account.
- Fill in the fields as required and click on ‘create an account'. Follow the prompts that appear on your screen to finish setting up the account.
- Log in to your account and proceed to fund your SmartSMS wallet. Read how to fund your SmartSMS wallet here.
To request our assistance in crafting your business plan, do send us a mail at
If you enjoyed reading this article, you may like our article on how to create an outstanding marketing plan for your business.