A business plan is inherently strategic. It is a document that defines the future of your business, tells your business plans and how you plan to execute them. The following outlines the contents of what your business plan should consist of and also make you aware of some questions that you need to address when crafting a plan. Take a look at the brief, yet comprehensive guide to come up with a business plan that is effective and practical.
Your business mission must be concise and clearly outline the value that you provide to your customers. Your target audience should be able to understand your purpose without any hassle. Typically, a mission statement gives answers to the questions given below:
- What is your niche market?
- Is there any specific outcome or result that your business is focused on?
- What service or product offerings do you specialize in?
- Is your mission statement put into meaningful words that will inspire both your employees and customers?
- What are the services or products that your business specializes in?
- What approaches does your business need to take in order to achieve the outcome that you envision for your company?
- How are you going to keep your mission in front of your clients, employees and associated so that they stay with you for the long run?
A vision statement is a way for organizations to declare its objectives. This statement is also intended to act as a guide for the company’s internal decision-making process. Since vision cannot be measured, it is regarded as a soft skill. When writing down the vision statement of your company, you must see that it answers these questions:
- What is the long-term image of your business that you are trying to achieve?
- What is the greater purpose of your business that you are hoping to fulfill?
Goals Or Business Objectives
Objectives stand for the ultimate goals that your business wants to achieve. You need to be clear about both the short and long-term objectives of your business. Identifying those objectives will help you to achieve the goals that you want to attain. You also need to create concrete and clear measurements for the different areas of your business. This will help you to ascertain whether your business activities are aligned with the goals that you hope to achieve or you need to make some changes.
The Plan Of Action
Strategies or tactics are skills and plans that enable a business to accomplish goals while fulfiling the business objectives and mission. You must lay down clear actions for your business that will help you get to where you want to go from where you are.
Basic Operating Procedures
Running a company without laying down proper rules will only bring chaos and confusion in the day-to-day running of operations. The basic operating procedures are the very foundation that helps in conducting business. These procedures will ensure that your business is being operated as per the principles and objectives of your company. Some of the questions that you need to ask yourself when laying down the procedures are as follows:
- What are the commitments of your business?
- What does your business stand for?
- What is the driving force?
- What are your business principles?
You also need to craft a company manual or employee handbook so that those working with you are aware of the rules and regulations to follow.
Organization And Answerability
As a business owner, you need to be accountable and responsible for your actions. Also, you need to be organized and have a proper system by which to operate your business so that it can achieve particular purposes. You have to define what your business stands for and what the individual departments and employees are accountable for.
Implementation Or Execution
Implementation refers to the measurement of results and the actual budget. You need to find out the resources that you need, where can you obtain them and how much will they cost. Also, you have to decide on the appropriate actions that need to be taken.
A budget is a prediction or estimate of revenue and expenditure for your business. You need to prepare an operating statement for your company for an entire year.
Management Of Breakdowns And Issues
How you manage problems and breakdowns in your company is the key difference between success and failure. You can think of investing in training programs to educate your managers on leadership management. You can also invest in various employee training programs so that your employees get to constantly learn new skills that will propel them ahead in the industry or make them eligible for a promotion. The relationship that employees have with any business goal or project is shaped directly by the employee’s commitment level.
The above-mentioned is a practical and simple breakdown of a business plan. You can make use of this guideline for effective development of your business and entrepreneurship.