If you are looking for an investment or want to attract a grant, then you definitely need to paint the business processes of your business in detail.
After analyzing a large number of requirements of grantors and venture investors, we compiled a small instruction with the sequence of actions necessary to write a business plan.
Step 1: Collection of external information
- Determine the industry in which your business works, and analyze the current state of this industry. Use open sources of information, such as news articles, reports of analytical agencies and statistical data to understand market trends and competition.
- Evaluate the situation of your business in the market and analyze your competitors. Determine their strengths and weaknesses, learn about the new products and services that they offer, and also evaluate how your business can stand out among them.
Step 2: Assessment of the current business situation
- Prepare the financial reports of your company, including a profit and loss report, a balance sheet report and a cash movement report. This will allow you to evaluate the financial condition of the business, its current profitability and solvency.
- Analyze the key business indicators, such as turnover, profitability, average check, market share, etc. Determine which indicators are critical for your business and which of them must be improved.
- Determine the current problems and risks that your business faces. Consider the factors that may affect your business, for example, changes in the market, changes in legislation, etc.
Step 3: Definition of goals and business development strategies
- Determine the goals you want to achieve in the next 3-5 years. These can be the goals to increase profits, expand the geographical presence, increase the market share, etc. Make sure these goals correspond to your mission and business values.
- Develop a business development strategy that will help achieve your goals. Consider such aspects as products and services, marketing, operating processes, finance and technology. Determine what changes are necessary in each of these aspects to achieve their goals.
Step 4: Budget planning
- Develop a budget for the next 3-5 years. Make sure that the budget takes into account all expenses, such as the rental of premises, employees' salaries, purchase inventory, marketing expenses, etc. Also, make sure that you have determined enough financial resources to implement a business development strategy.
- Evaluate predicted income based on current sales and planned growth. Consider which products and services will be the most profitable, and determine how to increase their sales.
- Calculate the profitability and payback indicators to determine how effective your business will be in the coming years.
Step 5: Creation of an action plan
- Develop an action plan that will help you achieve your goals. Determine the specific steps and events that must be taken to implement a business development strategy. Break the action plan into smaller stages so that the process is more controlled.
- Ensure the action plan includes specific terms and responsible persons for each stage. This will monitor progress and adjust the plan, if necessary.
Step 6: Evaluation of the effectiveness and adjustment of the plan
- Evaluate the effectiveness of your business plan through certain periods of time (for example, annually or quarterly) to make sure that you have achieved your goals and planned growth. Compare the real results with forecasts and evaluate how accurate the business plan was. If necessary, make adjustments to the business development strategy and an action plan to improve performance.
- Evaluate the risks that can affect the achievement of the goals. Develop risk action plans and make sure that they are included in your business plan.
- Do not forget that a business plan is a living document that can and should change depending on changes in external and internal conditions. It should be constantly updated and adapt to new challenges and opportunities.
Bonus: indicators that must be included in the business plan
- The goals and strategies of business development for a long-term and short-term perspective.
- Market analysis and competitive environment, including determining the target audience, trends and potential opportunities.
- Marketing strategies and plans for promoting products and services.
- Description of products and services, including their features, advantages and prices.
- Assessment of financial stability, including income, expenses, profit, taxes and other financial indicators.
- Determining the resources necessary for the implementation of a business plan, including financial resources, personnel, technologies, materials and equipment.
- A plan for a short and long-term period, including an assessment of the risks and ways of their management.
- Performance indicators, such as the number of sales, profit, percentage of growth, market share and other key metrics will be used to assess the success of the business.
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