How to Develop a Business Plan Model (Practical Guide)
How to Develop a Business Plan Model (Practical Guide)
Whether you are an entrepreneur or interested in starting a business or working in a large corporate team, you should know that you need a professional business plan that allows you to actively enter the market, boost business growth, and provide you with a competitive advantage.
A successful project was an idea from the start, and a professional business plan was developed to help achieve it.
Action plans help you understand all aspects of finance, materials, and morale, enabling you to start projects with lower risk, greater efficiency, and fewer resources.
In this article, we will elaborate on what a business plan is, what its elements are, and how he will professionally write a business plan model.
What is the action plan?
A business plan is a company’s action plan for some time in the future until the goal is achieved. This guide and a leading tool for those who want to do business in the company or launch new products or projects.
It clarifies all aspects of the company’s internal and external operations, as well as the following:
- Ideas and objectives of the project.
- Policies used to ensure access.
- Periods covered by the plan.
- Market economy situation.
- The extent to which funding is needed and its source.
- Expected strengths, weaknesses, opportunities and threats.
- Product description or service and concept.
The Plan of Action is an integral part of the work itself and is not only a document or an off-the-shelf model but also a serious exercise that can focus its efforts and work effectively.
Why do we need an action plan before starting a project?
Have you asked yourself why businesses and companies need business plans?
As mentioned earlier, it is like a roadmap that guides you towards your goals and will enable you to deal with the opportunities and constraints you encounter throughout the process of achieving them.
The answer to this question is not limited to this, and there are many reasons why businesses need to always write business plan models for their projects, such as:
Includes all details of the products and services provided by the project and the pricing and supply planning, marketing and sales strategy of the project.
Business plans are a prerequisite for obtaining project financing and loans from banks, as entrepreneurs need detailed information about the project and its feasibility.
Business planning is a major reason for increased investment. Successful programs attract investors to purchase their projects, invest in or purchase some of their shares in the company, and increase their chances of acquiring investors who add value to their projects or integrate into the main entity.
All operational financial statements are available from the capital, assets, liabilities, financial needs and sources of funds.
j) The Action Plan helps to initiate projects with lower risk and higher return on investment, as it provides detailed instructions on funding, production requirements, and how to deliver and market products.
This importance comes from the integration and interaction of some of the basic elements and components of the plan.
Content of the action plan
The action plan includes several key elements:
Component 1: Executive Summary
It provides a full plan overview, why you plan, products and services offered, goals, market overview, resources and funds you need, and a competitive advantage for your brand or product.
The purpose of the Executive Summary is to attract the attention of the concerned and provide a brief overview of the contents of the plan.
The second element is a description of the company
The second element of the plan is the description of the company, which determines whether the company is an individual, an investment, or an alliance. This element highlights some details:
- The type, vision, and goals of the company’s industry.
- The products and services they offer are described simply.
- Target customers, their personalities, and approach strategies.
- The financial and legal status of the company.
- The management structure of the company.
The purpose of the company description in the plan is to provide an overview of the company, important information about the company, and to clarify the situation of the company realistically.
Element 3: Description of the working environment
This capability is intended to analyze existing business environments or companies and industries through two axes:
First, the commercial market
The commercial market is analyzed and estimated by size, the growth rate of the business within, and the extent to which it can be absorbed by startups, products, and services.
In addition to studying the types of variables that occur, opportunities and threats, requirements
Identify the consumer’s characteristics, demographics and lifestyle, and who is a customer in the market, whether they are a business, individual or government entity.
Second, competitive analysis
This axis analyzes competitors in markets that offer the same or similar products and uses market research to identify their strengths, weaknesses and market share, marketing strategies, and threat sizes.
In the end, the goal of understanding and analyzing the market and competitors is to create products that meet the needs of customers and consumers, leverage the experience of competitors, and avoid the weaknesses and threats they have experienced.
Element 4: Description of products and services
This element describes the company’s products, description and use, production volumes, production costs, expected profits, and sales. Describe how the product or service works and the price
Component V: Operational Plan (Operations)
A process Plan is a production, product or service, and is a series of activities that include:
All the details about how the task works and who is working on it
What you need to achieve
Strategies used for sales and marketing.
The marketing mix, component:
Price: Different pricing strategies for the product.
Product: Resolve the customer’s issue.
Promotion: A marketing channel used for marketing and messaging your audience.
Location: Sales and sales locations.
Factors that influence the marketing and sales of products
It also indicates the sales amount to be sold to achieve the profit equivalent to the production cost by showing the break-even point through the sales plan.
Make an operational plan a dynamic plan that highlights all steps in your company to achieve your goals.
Component VI: Financial Forecast (Financial Plan)
The Financial Predictive Component of the most important element or part of the business plan outlines the financial requirements of the business, including:
Available assets and liabilities, costs from production, supply and other costs, development costs, estimated costs, expected profit margins, revenue, Available sources of funds and cash flows.
Element 7: Workgroup
The planning model should describe the work of the work-based team and each team member, founder, and manager.
You can hire outside workers or freelancers to explain how many tasks they will perform, what they will do, and the requirements and skills they will need for the team.
Company hours of operation.
Number of employees and estimated salary
Expected rewards and incentives.
Element 8: Appendix
This section contains all additional documentation and information supporting the plan, including partnership agreements, leases, permits, business records, bank accounts and all supporting documentation.
The ability to understand these elements, their content and their relationships helps to create effective planning models that distinguish them from others and help you achieve your ideas effectively and excellently.
How to Develop a Business Plan Model (Practical Guide)
How to create a phased business plan model
There are some important things you need to be clear about in your plan early on.
It is common to prepare a business plan model that not all companies and brands are the same, and that the model is not similar in its components.
Every business has requirements, so the model and components vary from company to company. For example, some companies incorporate marketing and sales plans into their operations plans, and some make their separate elements.
Some companies are worth mentioning that they are preparing model plans manually according to the needs of the components of the plan to prepare model plans, and some companies are using a ready model or program to help the company in writing, each company has its mix of elements and a style to achieve what they want.
The duration of each plan depends on the duration of the project, some with a six-month plan for action, some with a one-year action plan, and the duration is extended to five years to set all the processes and goals.
It was easy to prepare because we had enough information about the plan, the importance of the project, and the elements that makeup it.
How to Develop a Business Plan Model (Practical Guide)
Now you need:
1. Write a summary: Start by writing a summary and briefly explaining all details and objectives.
2. Describe your Company and Business: Trying to explain your business environment uniquely can make your company an attractive place for investment and increase your chances of success in the goals you seek.
3. Describe in detail the products and services: Features and target customers, the materials needed to produce the products, pricing plans and market launch strategies.
4. Analyze the market and competitors: In this section, think and answer some of the following questions:
What is the number of competitors, the size of the company, and the degree of convergence?
What are their strengths and weaknesses?
As a competitor, what is your expected response to your employment?
How likely are other competitors to enter the market?
With full knowledge of these answers, you can determine your strategic position in the marketplace.
5. Operational Plan Development: Clarify the details of marketing and sales plans to be performed during the term.
Also, create a scenario that answers the following questions:
What if raw material prices rise?
What if the machine fails in the factory?
Has your company left one of your administrators?
Has the energy price and cost increased?
How to Develop a Business Plan Model (Practical Guide)
The problem of neighbouring countries?
Lack of production resources or suppliers?
This answer provides a solution to the anticipated crisis and the development of plans and strategies to handle and manage it, and is not surprising during the execution of the operational plan.
6. Development Financial Analysis: Clarify all information about capital, cost, revenue, scale and source of required funds.
Please answer the following questions.
When should I buy raw materials and how much does it cost?
How long do you need to attract customers?
What is the cost of customer acquisition and retention (marketing operations)?
What is the financial investment to buy assets?
Note: The responsibility for preparing this part of the plan is the manager along with the Chief Financial Officer.
7. Team: In this section, you should explain the skills required for the job, the skills required for the team (individuals and skills), the roles of each team member are distributed and the person responsible for each task is identified.
8. Attach the necessary accessories: What you need is to present the plan to the people involved and support your financial and moral situation.
9. use templates and prebuilt forms. Review the spelling and costs at least twice before submitting.
Read more: Emotional intelligence: how it can make a difference.
Some tips that can help you develop a professional business plan
The plan must be realistic, feasible and not based on under-considered assumptions and expectations.
To be easy to understand, you must be clear and away from complexity.
Planned products or services must have unique features and specifications to help bring them to market.
Before you start, you must ensure that all financial, production and functional information you need to prepare is available.
Making the first draft before you start submitting it to stakeholders helps you write any changes and urgent developments regarding the project.
Try not to exceed 30 pages and focus your writing on the quality and usefulness of your information rather than the quantity.
Avoid misspellings, review financial figures accurately, be accurate and concise, and provide clear and credible information across all parts of the Business Plan.
You can use tools like Canva to help you prepare your business plan.
IV. Synopsis
The Business Planning Model is the core of enterprise growth and provides you with a graphical view of the status of your company or future projects from a variety of perspectives, including finance and marketing.
It also shows you where you are now, where you are after a certain amount of time, what the purpose of this trip is, and the route you take to achieve your goals, and represents an expanded picture of your project and a vision for the future.
