HY Accounting Blog

How To Write A Business Plan – Your First Steps

Writing a business plan can be a daunting prospect. Business plans are long and complex documents written by entrepreneurs who have dreams of owning and scaling a business. Most business plans cover every aspect of a company’s operations, from the founding idea, to how the company will continue to operate and how it intends to increase its profits in a competitive market.

Investors use a business plan, lenders and other third parties to know information about a company’s financial affairs before funding it. While business plans do not need to be complex, they need to be well organized and include specific steps to be taken when completing the document. A business plan is also a fluid document, which means that they should regularly be reviewed

Ways of Writing Business Plan

There are several different formats for how to write a business plan. While the most commonly used format is a standard word document, many entrepreneurs prefer to use a more convenient form, allowing them to quickly provide succinct information while still efficiently distributing it to those interested in their companies’ future.

The most popular format for writing a business plan is a four-page business plan, although some businesses prefer to use a shorter outline. The four-page design is the industry standard due to its clarity and simplicity and allows those familiar with the company writing to understand the information presented quickly.

In addition, the format allows the individual to highlight significant points of the business idea, rather than having to re-write the same information over. Most entrepreneurs prefer to secure funding in a business loan when searching for funding sources rather than an equity loan.

Why write a business plan?

Many business owners are unsure about how to write a business plan. They don’t always understand the necessity and advantage of obtaining outside help. Outside help can provide direction in many areas, such as developing a marketing plan, business strategy, market research, and the viability of the business concept.

Marketing is the first step in growing a business that utilizes technology. Experts who specialize in marketing can provide crucial guidance to business owners when they need help to create a unique marketing strategy.

What Should be in a Business Plan?

Once you have a list of all the details necessary to develop a comprehensive business plan, selecting the right company before writing your business plan is essential. Each financial institution you secure funding through will require a completed application. Therefore, it is necessary to ensure that all the information is accurate and up-to-date before submitting it to your potential lender or financial institution.

As long as you are prepared to provide all of the necessary information, a lender will be willing to approve your loan application and may even support it without ever performing a credit check.

Executive Summary

Once you know how to write a business plan, it is essential to complete a basic executive summary. An executive summary will provide a short version of your business plan. In addition, it will give a detailed look at your background, goals, management team, marketing plan, and strategies for achieving your goals.

This is an important section to include in your application because it will give the lender an exact outline of your business, including everything you plan to do once you obtain funding. Therefore, the executive summary should be written clearly and concisely and should include specific information about your management team, your market, and your anticipated return on investment.

Company Description

This part will let you write ample information about your business and lets you provide more details about your company. Here is the list of organizations, companies, consumers and industries you plan to serve.

You can also place your goals and objectives in this part, your company’s vision and mission, and your competitive advantages over others. You may also include the names of the experts in your company and your store or business’s location.

Market Analysis

It would help if you did this to ensure that you understand your business industry and look at your target market. This will also help you identify your competitors’ strengths and weaknesses to give you an upper hand sooner.

With market analysis, you can also use or implement some of the best strategies your competitors are using and see if it works on you and how did it help them.

An Overview of Your Organization

Give your readers and prospects an overview of the structure of your company and who will be in it. Please provide them with the company structure and offer an organizational chart that will help them see who are the people in charge of the company.

Financial Factors

You may provide a possible financial outlook for your business plan. As we all know, every business plan needs financial data, and you need to remember that. You may include forecasted cash flow statements, income statements, balance sheets and your expenditures and budgets.

Remember to always call a reliable accountant for small business to make sure that your financial projections are on the right track.

Marketing Plan

Last, you will need to put together a comprehensive marketing plan. Unlike traditional business plans, a marketing plan will show a more vivid picture of precisely what you plan to do with the money from your loan. It will also explain the steps you will take to bring your business to the market. Although this plan is not as detailed as a traditional business plan, it is still helpful in showing potential lenders how serious you are about pursuing your venture.

Marketing is the first step in growing a business that utilizes technology. Experts who specialize in marketing can provide crucial guidance to business owners when they need help to create a unique marketing strategy.

Ask Us How

While it can be complex, writing a business plan doesnt have to be. We’ve developed a 5-step business planning process to really simplify the planning process.