Top 8 Steps: How to Write a Business Plan Step by Step?

You might ask yourself why I’ve to make a business plan?

Why can’t I start my business with no plan and market it?

Well, you’re not alone. Over 20% of business owners don’t frame a plan before starting.

It surely doesn’t leave a good impact on your business growth and marketing. So, why not make a pre-planned structure for your business? It’s not a bad idea to think about the future before starting your business.

Before we jump in with a detailed guide on making an effective business plan, let’s do a quick survey of what a business plan covers.

What is a Business Plan?

A business plan is a written document that contains a company’s plans, the details of its project, and the whole layout on a single paper.

According to the QuickBooks survey, over 70 business owners plan before starting with their business ideas.

So, this clearly states that people who make business plans have more chances of growth and marketing.

Why Having a Plan is Crucial for Your Business?

For entrepreneurs, setting up a business plan is an effective strategy to run their businesses. So, its importance can’t be underestimated, especially if you have a starting business.

Here I’ve enlisted the importance of having a business plan in bullets.

● A business plan is vital when it comes to starting your company. 

● It documents what makes your business unique and outlines what you want to achieve in the long term.

● Given that, it can help you overwhelm the competition. 

For example, you can submit a business plan alongside your application if you’re looking for funding.

Now you have a basic idea of what is involved with setting up a small business. In the next step, we shall show you how to write a business plan by detailing some strategies for writing one.

Top 8 Steps: How to Write a Business Plan Step by Step?

1.  Make a Summary

A good business plan needs an executive summary that contains the key pain points of your company. Draft a simple and concise summary that focuses on your company goals and future projects.

Let’s say you own a business of bungalows for sale in Toronto & condos for sale in Mississauga, then your summary should include the followings:

● Define the problem. 

● Who are your potential customers? 

● Give a solution to the customer’s problems and jot it down in a one-page summary.

2.  Tell about your business

An excellent description always includes three key elements:

● Reasonable statement

● Company’s history

● Business objectives

The statement of your business plan should be emotional and inspirational to catch the customers’ interest.

It should mention your vision and profile of the company.

While writing the history of your company, mention the followings:

● Founding date

● Major achievements

● Location

● How many employees are working

● Role of main employees

● Your products and services

Then, clearly define your company goals and products.

So, let’s make a sample business description of a Canadian real estate brokerage company according to the above guidelines.

“We present real estate brokerage business to aid you to boost your way of living. We deal in bungalows for sale in Toronto & condos for sale in Mississauga. Our team has executed a considerable amount of estate projects successfully.”

So, this is what your business description looks like.

3.  Sizing the Market

Before setting up a business plan, you need to know how attractive is the business you’re trying to get into?

Also, what is the actual potential size of your target market? Does the Market comprise businesses or consumers? 

More to this, you should know the size of your achievable market. Understanding the size of your market will better help you understand your customers.

4.  Do Competitive Research

Running a company isn’t just about building a product and selling it. As in any industry, you have to know what your competitors are doing so you can stack up well against them. It doesn’t hurt to look at strengths and weaknesses, too.

For this, conduct a short analysis to look at your market’s strengths, weaknesses, and opportunities.

Understand the trending events going on in the competitive fields. It will help you keep up with the latest updates and investment opportunities.

Besides this, you should know what’s going on in the market. Is it going up, fluctuating, or rising in its value?

So, spend some time doing proper competitive analysis, and you will not be disappointed. Know your customers’ pain points, and if your business doesn’t have any direct competitors, research other companies similar to your products.

5.  Product or Services Description

The next important step in writing a business plan is to describe your products and services. Think through what other products or services your customers want and need and what new products they ask for?

Briefly describe your products’ production process, advantages, benefits of your products and see what can replace your products? Create new services and products in demand in your competitive market and manage them daily.

Example: As we’re discussing the example of a Canadian real estate brokerage company, here is how you can describe your products and services in a business plan.

“Our team of expert real estate brokers is known for dealing in bungalows for sale in Toronto & condos for sale in Mississauga.” 

6.  Prepare your Business Financials

Different creditors, investors, and market analysts use business financials to estimate the earning potential of a company. So, it is very crucial to include a financial statement in your business plan. 

If you’ve just started your small business; and have no sales, you still have to prepare a financial plan for your company. You should include the following in your financial plan:

● Your profit-and-loss statement

● CFS(cash flow statement)

● The revenue you generate as your net income

● Your conversion records

Including them in your financial report will help you pitch your idea and how you will position yourself with your customers.

Let’s say the current revenue of a Canadian real estate brokerage company is: 

● Ten completed projects

● $20,000 per project

● 15% profit margins

● $30,000 net

7.  Highlight your company’s expertise

The best thing to show in your business plan is to describe your company and organization in the competitive market. Your business growth depends on the working efficiency of your team and their role in the company’s marketing.

A business with passionate team members and expertise will run longer  than a business with little or no expertise. So, make sure you highlight the role of every employee working in your company. What are they doing, and what are their qualifications?

So, enlist their roles and expertise when writing your business proposal.

8.  Assemble official documents

You’re just one step ahead from finalizing your business plan, and it is assembling all of your company’s official documents. It will include your:

● Certifications from registered companies

● Local permits

● Company’s legal documents 

● Professional licenses and business registries

● Identification numbers and codes of your company

● Sales and orders of your customers

Adding this to your business plan will help deliver your products or services in the hands of the customers. In this way, you’ll be able to advertise and promote your products or services to build your brand’s presence.

Conclusion

Finally, the steps mentioned above will help you write an effective business plan for your company that will uplift you in the competitive market. But make it as engaging as possible. Follow these bonus tips to make your business plan more catchy.

● Keep it short

● Work on your readability, so everyone can easily understand it.

● Double-check and proofread

● Be prepared for future revisions

Implement these steps, and make an engaging business plan for investors and employees.