A business plan is a document outlining the objectives and goals of a business along with strategies to be put in place to achieve them. It can also be an organized guide detailing a system and methods to be used to ensure a business achieves success. A business plan is vital for decision-making while running a business as it helps establish a working system geared towards success. A business plan is essential to the success of new enterprises and just as crucial to already established businesses re-strategizing or trying out new projects.
Start-ups, medium and small-sized businesses, and blue-collar jobs are the backbone of the Kenyan economy. Statistics show that most SMEs are at risk of closure five years in. Despite many small businesses being in demand, poor planning and mismanagement cause their failure. One of the best ways to ensure success is a well-founded business plan. A good business plan not only serves as a reference point in times of crisis but also helps execute the ideas that enhance the growth of a business.
Below are four tips to help a small business draft a good plan that ensures success and helps counter difficulties.
Do Thorough Research About the Business
Having intensive and extensive information is crucial to the success of a business. Today one does not need to be on the ground to do thorough research as most information is available online. Some crucial information should include knowing your market demographic, reasons for the success of similar businesses, and causes of failure for failed ones. The use of questionnaires can also be a way to acquire important information and interact with potential clients. The research comes in handy during strategizing and drafting goals and plans the business desires to achieve.
Draft a Well-Detailed Executive Summary
An executive summary is a simple outline of the whole business plan. It should be short, not more than a page, and contain the main goals of the business plan. The goals will serve as an introduction to the users of the business plan. The summary should give the direction of actions to take and summarize objectives without intensive details. Research can help in drafting this summary.
Executive summaries can vary depending on goals and objectives. New businesses’ objectives may focus on acquiring clients, whereas established ones may focus on improving their business.
Write a Detailed Business Description
Document the current state of the business. For a new business, it means auditing all the assets and investments, and for an established business, documenting all resources, including those exhausted. List areas responsible for profits and losses. Document and audit the enterprise using graphs and charts showing the current financial situation. The business description helps determine how the plan aligns with the objectives and goals. It also gives purpose to the business plan as it shows the past and present state of operation that provides a path to the future direction the business aims to take.
Detail an Execution Plan
The main aim of having a business plan is to ensure success. This last step means identifying accelerants and potential obstacles and developing a system for tackling them. The steps listed above act as references and will help you write in detail an execution plan to guarantee success. The execution plan should have a well-laid-out structure that is efficient. This step should include a supervision model that keeps a record of the progress of the business plan. It should also be flexible enough to allow for restructuring to remedy parts of the systems that are not working efficiently.
These tips will help any entrepreneur or solopreneur write a sustainable and achievable business plan. Planning and having a well-organized business can prove vital to its success. Any venture can identify its strength and weaknesses and capitalize on that information.
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