Writing a Business Plan

#Define a business plan. What are the reasons for writing a business plan?
-A business plan is a written narrative, typically 25 to 35 pages long, that describes what a new business
plans to accomplish and how it plans to accomplish it.
The reasons are-
Internal reasons-Forces the founding team to systematically think through every aspect of their new
venture
External reasons-Communicates the merits of a new venture to outsiders, such as investors and bankers

#Who reads the business plan?

-a. Firm’s Employees-Clearly written business plan, which articulates the vision and future plans of a
firm, is important for both the management team and employees of a new venture.
b. Investors and Other External Stakeholders-External stakeholders, such as investors, potential
business partners, potential customers, and key employees who are being recruited to join a firm, are
the second audience for a business plan

#Briefly explain about the guidelines of a business plan

-a. Structure of the business plan-To make the best impression, a business plan should follow a
conventional structure, there is no need to show creativity in the business plan. No silly investment is
needed in making a business plan
b. Content of the business plan-The business plan should give clear and concise information on all the
important aspects of the proposed venture. It must be long enough to provide sufficient information yet
short enough to maintain reader interest. For most plans, 25 to 35 pages is sufficient.
Types of Business Plans-(1) Summary business plan(2) Full business plan(3) Operational business plan
c. Style or format of the business plan-The appearance of the plan must be carefully thought out. It
should look sharp but not give the impression that a lot of money was spent to produce it.

#Short note-
Executive summary-Short overview of the entire business plan; it provides busy readers with everything
that needs to be known about the new venture’s distinctive nature. It should be created after the plan is
finished.
Industry analysis-This section should begin by discussing the major trends in the industry in which the
firm intends to compete, along with important characteristics of the industry, such as its size,
attractiveness, and profit potential.
Market analysis-The marketing plan should immediately follow the industry analysis and should provide
details about the new firm’s products and services
Marketing plan- After reading this section of the plan, an investor should be confident that the firm’s
overall approach to its target market and its product strategy, pricing strategy, channels of distribution,
and promotional strategy are in sync with one another and make sense.