You have already developed and described your business development strategy. Now is the time to calculate everything in detail. This step-by-step guide will help you create a business plan.
A business plan is a detailed description of your project with calculations and perspectives for the next few years. It is needed by 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.
A business plan is generally written three to five years in advance. But it can also take a year, as economic conditions are changing rapidly.
The main task of a business plan is to convince potential partners that it is an interesting project from an investment point of view, which will pay off the money and effort invested.
If you have your own unusual business idea, you will have to come up with a business plan yourself.
A business plan includes a description of a product or service, a market analysis, a production plan, the organizational structure of your company, a marketing strategy to promote products, and a financial plan that summarizes all the basic calculations. A business plan must necessarily answer the questions: how much money is required to launch a project and how long will it pay off?
The resume is at the beginning of the business plan, but you will write it last. This is a summary of the entire document – the conclusions you will draw based on detailed calculations. After reading the resume, investors decide whether to study their plan further or not to spend time on it.
This item includes a brief description of the project and its competitive advantages, information on potential clients and partners. Tell us how you are going to sell your product or service and how to advertise it. Indicate how much startup capital you need and where you plan to get it. Describe the key stages in the development of the project and be sure to provide the terms of its recovery and planned profitability.
Let’s consider how to develop a business plan using the example of an online chocolate shop with delivery in a small town. Unlike analogs, in this store, the customer himself will be able to choose the original filling, design, and packaging. For this, the site will have a special builder.
2. Product description
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 ones and offer suggestions for improving your product.
Sample Product Description
Product or Service, colored chocolates with unusual additives, unique design, and unusual decoration, which the customer can choose himself. There are no direct analogs in the city.
Business model development and promotion of the product internally, production first on our own, then with the help of a private factory, sale, and delivery with the participation of independent contractors.
Development options: Expand the assortment, open a chocolate shop and, in the long term, sell a franchise
3. Market analysis
From the business strategy already developed, transfer the market analysis to the business plan. It is worth considering the proposals of competitors in more detail.
In the case of an online chocolate shop, the competitors will not only be the online sweet shops, but also the bakeries, gift shops, supermarkets, and private artisans who make sweets to order.
Supermarkets There are 5 supermarkets in your city with a wide range of chocolates. They represent 55% of chocolate sales.
Confectioneries. There are 50 candy outlets in the city, 5 of them sell online. 10 sell only chocolate and only 1 of them has a website. 25% of the market in terms of sales.
Shops for original gifts. 30 online gift shops. 10% of the market in terms of sales.
Private online sellers. About 20 profitable private traders. 10% in terms of sales.
Based on the analysis, conclude: what market share you can claim. For example, he estimates that in the first three years of operation, his online chocolate store will account for 35% of the city’s online chocolate sales.
4. Characteristics of potential buyers
Describe in detail who you are targeting, to whom you will offer your product or service. Answer: “Everyone” is wrong. It’s like shooting sparrows with a cannon. At the stage of developing a business strategy, you had to define your target audience.
Suppose you have chosen original buyers for an original chocolate online store. They love unusual things and should appreciate the opportunity to make chocolate according to their own taste and design. He calculated the share of these users at 20% of the total number of those who buy candy online. This should ensure that 2,500 chocolate bars are sold per month, one year after launch.
If you doubt your calculations, it is best to involve a specialist in drawing up a plan. It costs some money, but the results will be better than in case of error.