Thursday, June 14, 2012

Writing A Business Plan - A How To Guide

Making and writing a business plan, marketing your business, and finding starting capital is an extremely hard and time consuming process, but these are all important steps that every business owner must go through to establish a business. Even a person with no experience in any of these activities can set up and operate a successful business.

The key to owning and operating a successful company is having a well thought out business plan. In general, a plan for your business can be quickly described as a written description of how a company plans to make its money.

A good plan should start by including a list and descriptions of the business' expected costs. This typically includes line items such as rent, supplies, labor, and inventory. A good business owner will spend a lot of time carefully researching the current and future costs of each of the items on this list. Generally speaking, the more research that goes into each aspect of a business plan means that the plan is more likely to accurately reflect what will actually happen once the company starts operation.

Next, a potential business owner should list the expected price points of all of the merchandise, goods, and services that will be offered by the company. After this, list any prices that are currently charged by similar businesses for their merchandise or services. The idea behind this is to show that the proposed company's prices are in line with their competition. It is also important to show the reasons behind any price differences.

While charging prices that are higher than the competition can reduce sales, this might be mitigated in cases where the business offers services that increase the value of their product. For example, an upscale restaurant can justify their higher prices by offering a better atmosphere, location, and customer service than a mid-scale restaurant serving cheaper food would.

Finally, it is critical to include projected profit margins into the business plan. In addition, many strong business plans include a list of scenarios or stress tests along with a plan on how the business will overcome these obstacles. For example, a business plan might include a projected scenario in which sales fall by twenty percent. Solutions could include laying-off staff and cutting store hours and/or reducing inventory.

After the business plan has been written, the process of error checking and troubleshooting can take months. In fact, many potential business owners will change their plan multiple times in the course of establishing funding and actually setting up shop. As the process of starting a business moves forward, many business owners will rewrite their plan to include updated pricing for both their expenses and merchandise.

Since the business plan is the way that many potential investors will learn about the business, it is important to keep the tone of the plan positive. Some potential business owners even write several different drafts of their plan to present to potential investors; customizing each plan to speak to the area of knowledge or expertise that the investor understands best.

If you are struggling to write a strong and effective business plan then let Biz Guru, the experienced and successful business plan writing consultancy help you. Contact us at or

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  1. This comment has been removed by the author.

  2. Well, aside from the planning of prices and the inventory of your business, you should also make a feasibility study on the location of your store. This allows you to determine if your store can run for 5 years or more successfully. Well, you shouldn't exclude the chances of failure. And with the feasibility study, you'll know how to handle your business in those kinds of situations.

  3. After writing your business plan, you should also consider having it checked by a professional or a business expert. This way, you would know how your plan will turn out after a year or so. Also, a professional can help or teach you how to handle bad situations.

  4. When planning to establish a business, you should study the market well and anticipate how you can keep up in the industry. Not until you have stabilized your business can you rest. The start is the most crucial and the hardest part in building a business. So, you should keep yourself updated about the trends, since everything that you know can help you with your business.

  5. Writing a business plan may be difficult and requires a lot of time and effort, but it can definitely help you envision the path you want to take – and that, of course, is the road to success. Plus, you can also foresee the potential risks of venturing in such business and make an advance action to terminate it before it occurs.