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Create a winning business plan with this ultimate guide. From market analysis to financial projections, learn how to prepare a comprehensive plan for your business and secure funding. Get started today!
\n\n\n\nAre you tired of feeling lost and disorganized when it comes to outlining your business plan? You’re not alone! Many entrepreneurs struggle with creating a comprehensive plan that effectively communicates their vision and goals. Don’t worry, we’ve got you covered with this step-by-step manual. Let’s get right into it:
\n\n\n\nA well-crafted business plan is your roadmap to profitability and business success. It helps you to develop a viable, prosperous business that caters as much to your current requirements as it does to your long-term goals. A strong business plan explains every aspect of your business, from operations, revenue generation or ‘monetization’ models, necessary resources, and future growth plans. It is also a crucial document to convince prospective lenders and investors as it helps them comprehend the opportunities and risks of your business and why they should be investing in YOU and YOUR business instead of others.
\n\n\n\nFollowing this guide will enable you to produce a successful business plan that details the problem you are attempting to address, your proposed solution, a market analysis, a competitor analysis, a marketing and sales plan, operations, a financial plan, and any other pertinent data and information in a well-structured appendix.
\n\n\n\nWe’ll detail these steps, offering insight and tips on writing a great business plan. We’ll also cover important do’s and don’ts when writing a business plan. So, be with us for the next few minutes.
\n\n\n\nA business plan is a written document that deeply describes the objectives and goals of a company and it explains the actions you will take to achieve those goals. A business plan summarizes a strategy related to operations, finances, and marketing of a company. Both new and established businesses should have a business plan.
\n\n\n\nA business plan can also help a company’s executive team get and remain aligned about key action items and stay on track to achieve set objectives.
\n\n\n\nEvery company needs a business plan, but new ventures might even benefit more from having a well-developed plan that gives direction and credibility. The plan should ideally be reviewed and revised regularly to account for goals that have changed or been achieved and ticked off. However, also for established companies, a refresh of their business plan can prove crucial to steer the ship onto a new or adjusted course.
\n\n\n\nSince it offers a blueprint for the company’s future, a business plan is crucial for entrepreneurs and business owners. All businesses should have a business plan and keep it up to date, for several reasons:
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A business plan can be as detailed or concise as required, depending on the business’s needs. However, it should at least include the following sections:
Your executive summary is vital to your business plan, providing the reader with a snapshot of what you plan to accomplish. Depending on the length of your business plan, the executive summary can range from just one paragraph to a full page.
\n\n\n\nProvide a crisp overview of the important points in your business plan (the problem that it solves, the solution, the target customer, your competitive edge, the market size and key financial targets. Avoid getting into too much detail at this stage; instead, focus on providing the key bits of information that you would talk about if you had 60 seconds to present your plan with the aim to spark the reader’s interest for further investigation.
\n\n\n\nMany readers will not even get to the details of your business plan unless your executive summary manages to captivate them and makes them believe that they are onto something BIG here. Make it interesting by including information that brings out that you have identified a major opportunity and that you know and are best placed to capture it. And please avoid fluffy wording.
\n\n\n\nIf the reader reads only the executive summary, they should know what your business is about and be excited by the opportunity you have identified.
\n\n\n\nExplain the key problems that your target customers are facing and that your business solves. The problems demonstrate the necessity of your product or service in the market.
\n\n\n\nThe problems should be concise (one to three problems), easy for the audience to understand and big enough for the audience to care. If you can: (1) quantify the problems with numbers, (2) write them in a way that the audience can connect with the problems on a personal level and (3) show that someone important in your field has also identified these important problems, you have hit the jackpot.
\n\n\n\nThe ideal response from your audience should be: “Yes, these are real and big problems, and if solved, the customer will switch to using your product or service”.
\n\n\n\nDescribe your solution to the problem in simple words. It should highlight the unique selling proposition and competitive advantage versus current offerings in the market. Keep it simple for the audience to understand it and think to themselves: “Yes, this solution really solves those big problems.” If you are not getting this reaction from readers, rewrite it.
\n\n\n\nThis section should provide a detailed description of the products or services the business offers. It should include features, benefits, pricing and distribution channels. Don’t be shy with explaining the uniqueness and value proposition in some detail, and qualify the reasons for your customers loving your product or service
\n\n\n\nDefine your (1) target customers and their needs and wants (2) how many customers are there in your target geography and market segment, (3) how much money they spend on similar products annually (market size) and (4) how much will the market grow in the next 5 years. The more stats and data you have from relevant and reputable sources like statistics bureaus or academic research, the better. Quote your research and give credit where credit is due!
\n\n\n\nInvestors like to see that lots of people experience the problems that you are solving. This gives them an idea of the revenue potential for your business and the size of the opportunity.
\n\n\n\nTo start, consider your product or service. What need does it fill? Who would be most likely to use it? Once you have a good idea of your target customer, you can research their demographics (age, location, gender, etc.), lifestyle choices, and buying habits.
\n\n\n\nThere are many ways to gather this information. You can conduct surveys or interviews with people in your target market, look at data from similar businesses, or use online resources.
\n\n\n\nYour goal is to create a detailed profile of your ideal customer. Once you know who they are, what they want, and how to reach them, you can develop marketing and sales strategies to build your funnel and start converting them into paying customers.
\n\n\n\nThis section provides an analysis of the competitive landscape in your sector. You should identify the main competitors, their strengths and weaknesses, and their market share. It should also provide insights into how your business will compete and differentiate itself.
\n\n\n\nYou should convince your audience of two things:
\n\n\n\n(1) That you know your competitors as well as you know your product and customer and
\n\n\n\n(2) that your solution is different and better than theirs
\n\n\n\nThis is best done by identifying the critical success factors for your business, or the key criteria that customers consider when making a purchasing decision, and then comparing your business to your main competitors on those factors.
\n\n\n\nKnowing your competition is as important as knowing your product and your customer. It’s simply impossible to convince investors that you will succeed if you don’t know your competition. Also, do not mention ‘we don’t have competition because we are unique’ – in such case, you are missing the indirect competition that in one way or the other already addresses your customer’s needs.
\n\n\n\nUse your market and competitive analysis to craft a marketing strategy that will help you reach your target market. How will you communicate with your target market? What channels and media will you use? What message will you communicate?
\n\n\n\nYour marketing strategy should be designed to achieve your business goals. For example, if your goal is to increase brand awareness, your marketing strategy might include PR and social media outreach. If your goal is to increase sales, your marketing strategy might include targeted ads and email campaigns.
\n\n\n\nYour marketing budget should reflect your objectives, goals, and market analysis results. Make sure to allocate enough resources to reach your target market effectively.
\n\n\n\nWe recommend using one of three frameworks for describing your marketing strategy:
\n\n\n\nWhichever framework you decide to use, make sure that you include the activities you will perform to attract customers and the key performance indicators (KPIs) that you measure in order to evaluate the success of your marketing strategy.
\n\n\n\nThis section should describe the sales process and the strategies and tactics that the business will use to generate revenue. It should include information on the distribution channels you will use to sell your product or service, as well as your strategies to convert leads to paying customers, mention your customer creative means to increase sales, whether it’s subscription add-ons, amazing customer service to convert free to paying customer, or an extensive affiliate program that creates wide reach in the influencer space of your product.
\n\n\n\nRemember, sales are the key to success – plan well and be creative!
\n\n\n\nThis section should describe the day-to-day operations of the business. It should include information on the location, facilities, equipment, and personnel required to operate the business. Make sure to mention some of the intricacies of your business operations to give the readers the confidence that you truly understand the nitty-gritty details of your business.
\n\n\n\nRoadmap
The roadmap shows the most important milestones your company has achieved in the past and the planned major milestones going forward. Use the roadmap to show how efficient your company has been in delivering major milestones and the direction you are going towards in the future.
Outline the company structure of your business plan. Include information on the ownership of the company, the management team, and the organizational structure.
\n\n\n\nThe team subsection is by far the most important. Even if investors believe that you have a billion-dollar idea, you still must convince them that you and your team have the right skills and experience to make the business successful. Here is your chance to showcase your relevant experience and success. For each core team member, you should mention the relevant companies and positions they have held and the number of years of relevant experience. Make sure your core team covers the key areas of business: management, technical skills and marketing and sales capabilities and have a unique edge to compete in the space.
\n\n\n\nYour financial plan is a key business plan component and should be carefully considered. This section of your plan will include details on your company’s past financial results and projections for the future.
\n\n\n\nIn this section include Revenue, Revenue growth, EBITDA or Net Income, EBITDA margin or Net Income margin and Free Cash Flow as key financial numbers. More detailed financial information like Profit and Loss Statement, Balance Sheet and Cash Flow Statement would go in the appendix.
\n\n\n\nIf your business has been operational for some time, include the same data for the previous 1 to 3 years.
\n\n\n\nUse charts, where you can, to show the key financial information. Tables are boring, if there are too many of them.
\n\n\n\nThis section includes additional information that supports the business plan, such as market research, legal documents, and resumes of key personnel, detailed financial information.
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Here are some Do’s and Don’ts to keep in mind as you write your own business plan:
Do’s:
\n\n\n\nDon’ts:
\n\n\n\nIf you’re like most entrepreneurs, the thought of writing a business plan makes you cringe. After all, business plans can be long, complicated, and time-consuming to put together.
\n\n\n\nHowever, a thought through business plan is essential for any business. It provides a roadmap for the company’s future, helps secure funding, aligns all stakeholders towards the same goals and avoids miscommunication, aids in managing resources effectively, and measures progress toward achieving the set targets.
\n\n\n\nBy following this outline, you can create a professional business plan that sets your company up for success. If you want to do it faster, better and cheaper, try writing your business plan with Modeliks. Our business planning software allows anyone to easily create a professional business and financial plan by guiding them, step by step, through the business planning process. It is free to try, so why wait!
\n\n\n\nToday we released a massive new update of Modeliks. A multidimensional Modeliks 2.0. I am both happy and sad to see Modeliks grow up. I liked baby Modeliks. He was cute and a little clumsy. Now, we created a beast.
\n\n\n\nWe listened to your feedback and made Modeliks by far the best financial planning and reporting tool for SMEs. Alright, I might be a bit subjective, but here is what’s new:
\n\n\n\nAnd there is a lot more to come in the next few months. Stay tuned for new features, and in the mean-time, plan, manage and grow your business with Modeliks 2.0.
\n\n\n\nLet’s recap. Now you can:
\n\n\n\nEnjoy Modeliks 2.0! We know we are!
\n\n\n\nAuthor:
Modeliks Team
A variance report is a financial document that compares actual performance against planned or budgeted figures. It highlights differences (variances) between expected and actual results, helping businesses identify areas where they are overperforming or underperforming. These reports are commonly used in financial management, project management, and operational planning.
\n\n\n\nVariances in a report can be classified into:
\n\n\n\nA variance report is a crucial tool for analyzing financial performance, improving budgeting accuracy, and making strategic decisions.
\n\n\n\nVariance reports allow businesses to track deviations from their budget, helping them stay on top of their financial plans and prevent overspending.
\n\n\n\nBy analyzing variances, businesses can make informed adjustments to their financial strategies, resource allocations, and operational processes.
\n\n\n\nSignificant variances can signal inefficiencies in production, procurement, or sales, prompting businesses to investigate and optimize their operations.
\n\n\n\nHistorical variance reports help businesses refine their financial projections and make more accurate forecasts.
\n\n\n\nBusinesses can identify cost overruns and take corrective action to control expenses and enhance profitability.
\n\n\n\nBy comparing actual results to expected outcomes, variance reports hold departments and individuals accountable for their financial and operational performance.
\n\n\n\nUnderstanding financial and operational variances allows businesses to identify potential risks and implement preventive measures before they escalate.
\n\n\n\nA variance report provides a clear picture of a company’s financial health by comparing budgeted vs. actual results.
\n\n\n\nIt highlights unexpected expenses and cost overruns, allowing businesses to take corrective measures.
\n\n\n\nBy tracking sales variances, businesses can determine if revenue is growing as expected or if adjustments are needed.
\n\n\n\nVariance reports provide valuable data for future business planning and strategy adjustments.
\n\n\n\nDepartments and employees can be held accountable for meeting financial and operational targets.
\n\n\n\nReal-time variance analysis helps managers make quick, data-driven decisions to optimize performance.
\n\n\n\nUnforeseen variances can indicate changes in market trends, economic conditions, or customer behavior, allowing businesses to adapt accordingly.
\n\n\n\nVariance reports are essential tools for financial analysis, cost control, and strategic decision-making. By regularly monitoring variances, businesses can improve their financial accuracy, enhance operational efficiency, and ensure sustainable growth. Whether used for budgeting, forecasting, or performance evaluation, variance reports help businesses stay competitive and financially stable.
\n\n\n\nMake confident decisions with Modeliks. Plan, manage, fundraise and grow your business.
\n\n\n\nAuthor:
Modeliks Team
A Certified Management Accountant (CMA) is a professional designation awarded to individuals who have demonstrated expertise in financial management, strategic decision-making, and performance management. The CMA certification is issued by the Institute of Management Accountants (IMA) and is recognized globally as a mark of excellence in management accounting.
\n\n\n\nCMAs possess in-depth knowledge of financial planning, analysis, risk management, internal controls, and corporate finance. Unlike Certified Public Accountants (CPAs), who focus primarily on financial reporting and compliance, CMAs specialize in using financial data to guide business strategy and improve overall organizational performance.
\n\n\n\nTo earn the CMA designation, candidates must meet specific educational and experience requirements, pass a rigorous two-part exam covering financial planning and analysis, and adhere to ethical standards set by the IMA. CMAs play a crucial role in helping businesses optimize financial operations and achieve long-term success.
\n\n\n\nCMAs provide valuable financial insights that help businesses make informed strategic decisions, ensuring sustainable growth and profitability.
\n\n\n\nWith expertise in cost control and budgeting, CMAs help organizations optimize resource allocation, minimize waste, and improve operational efficiency.
\n\n\n\nCMAs play a critical role in identifying financial risks, implementing internal controls, and ensuring compliance with financial regulations, reducing the likelihood of fraud or financial mismanagement.
\n\n\n\nBy analyzing financial data and key performance indicators (KPIs), CMAs assist businesses in setting realistic goals, measuring progress, and improving overall performance.
\n\n\n\nBusinesses considering mergers, acquisitions, or major investments rely on CMAs to conduct financial analysis, assess risks, and ensure informed decision-making.
\n\n\n\nCMAs develop and maintain financial forecasts, ensuring businesses have a clear roadmap for future growth and financial stability.
\n\n\n\nCMAs ensure that businesses adhere to financial regulations, ethical standards, and corporate governance best practices, fostering transparency and accountability.
\n\n\n\nCMAs prepare financial forecasts, conduct variance analysis, and provide insights into business trends, helping organizations plan effectively for the future.
\n\n\n\nThey assess production costs, overhead expenses, and pricing strategies to maximize profitability while maintaining cost efficiency.
\n\n\n\nCMAs assist executives and business owners in making data-driven decisions, evaluating investment opportunities, and formulating growth strategies.
\n\n\n\nBy implementing robust risk management practices and internal controls, CMAs help businesses safeguard assets and prevent financial fraud.
\n\n\n\nThey develop budgets, financial models, and projections to ensure businesses have a clear financial direction and avoid unexpected cash flow issues.
\n\n\n\nCMAs track financial performance through KPIs and suggest improvements to enhance efficiency, productivity, and profitability.
\n\n\n\nThey ensure that businesses comply with accounting standards, tax laws, and ethical guidelines, reducing the risk of legal and financial penalties.
\n\n\n\nWith the increasing reliance on digital tools and analytics, CMAs leverage financial software and data analytics to enhance decision-making and streamline financial operations.
\n\n\n\nA Certified Management Accountant (CMA) is an essential asset for any business seeking financial stability, strategic growth, and operational efficiency. With expertise in financial planning, cost management, risk assessment, and strategic decision-making, CMAs help organizations optimize financial performance and achieve long-term success. Whether you’re a small business owner or part of a large corporation, having a CMA on your team can provide the financial leadership needed to navigate today’s dynamic business landscape.
\n\n\n\nMake confident decisions with Modeliks. Plan, manage, fundraise and grow your business.
\n\n\n\nAuthor:
Modeliks Team