{"id":4707,"date":"2020-03-08T13:07:11","date_gmt":"2020-03-08T07:37:11","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=4707"},"modified":"2020-10-19T17:01:16","modified_gmt":"2020-10-19T11:31:16","slug":"prepare-a-business-plan-process","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/prepare-a-business-plan-process\/","title":{"rendered":"How to Prepare a Business Plan? &#8211; A Complete Guide for startups"},"content":{"rendered":"\n<p class=\"has-drop-cap\">A business plan is a document that is prepared by the\nentrepreneur, which describes all the relevant internal as well as external\ninformation that is required in starting a new business. It is a combination of\nthe functional plan like finance, marketing, human resource, and manufacturing\nplan related to business activity.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/prepare-a-business-plan-process\/#Importance_of_Business_Plan\" >Importance of Business Plan<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/prepare-a-business-plan-process\/#Who_needs_a_business_plan\" >Who needs a business plan?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/prepare-a-business-plan-process\/#What_are_the_ingredients_of_a_Business_Plan\" >What are the ingredients of a Business Plan?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/prepare-a-business-plan-process\/#What_are_the_types_of_Business_Plan\" >What are the types of Business Plan?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/prepare-a-business-plan-process\/#What_is_the_business_plan_process\" >What\nis the business plan process?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/prepare-a-business-plan-process\/#What_is_the_content_of_the_project_report\" >What is the content of the project report?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/prepare-a-business-plan-process\/#Final_thought\" >Final thought<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Importance_of_Business_Plan\"><\/span>Importance of Business Plan<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>A business plan is a step by step process to convert a business idea into a successful business. It involves the following details-<\/em><\/strong><\/p>\n\n\n\n<ul><li>Identifying innovative ideas;<\/li><li>Research of external environment for opportunities as well as threats\ninvolved;<\/li><li>Identifying strength and weakness;<\/li><li>Assessing the practicality of the concept;<\/li><li>Allocation of resources in a proper manner;<\/li><li>It gives direction to the vision expressed by the entrepreneur;<\/li><li>It evaluates the prospects of the business;<\/li><li>It monitors the progress;<\/li><li>It convinces others to join the company;<\/li><li>Its helps in taking loans from Financial Institutions;<\/li><li> It facilitates the decision making progress. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_needs_a_business_plan\"><\/span>Who needs a business plan?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Any person starting or extending their business which can consume resources like money or time should draft a business plan for smooth functioning. <\/em><\/strong><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"586\" height=\"200\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-22.png\" alt=\"business plan\" class=\"wp-image-4710\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-22.png 586w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-22-300x102.png 300w\" sizes=\"(max-width: 586px) 100vw, 586px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Start-ups <\/h3>\n\n\n\n<p>The main reason for a start-up to have a business plan\nis because start-up focuses mainly on the idea and not on the execution of\nthose ideas. <\/p>\n\n\n\n<p>A business plan will help start-ups to have proper\nmanagement by setting up objectives and tracking down those. If they work\naccording to their business plan, it will help them to achieve their targets in\na more organized manner.<\/p>\n\n\n\n<p>Cash inflow and outflow and future requisites can be\nmonitored if you have a full-proof plan.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Established firm<\/h3>\n\n\n\n<p>The business plan will help the firms to develop a\nstrategy and allocate the resources according to their strategy.<\/p>\n\n\n\n<p>A business plan helps you in keeping a look on the valuation of the business. Companies can use a business plan to set new targets.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_ingredients_of_a_Business_Plan\"><\/span>What are the ingredients of a Business Plan?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>A business plan consists of three segments which are mentioned below-<\/em><\/strong><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"564\" height=\"292\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-23.png\" alt=\"ingredients of a Business Plan\" class=\"wp-image-4713\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-23.png 564w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-23-300x155.png 300w\" sizes=\"(max-width: 564px) 100vw, 564px\" \/><\/figure><\/div>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/shares-issue-through-employee-stock-option-plan\/\">Process for Shares Issue through Employee Stock Option Plan<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_types_of_Business_Plan\"><\/span>What are the types of Business Plan?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The business plan is divided into six types-<\/em><\/strong><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"592\" height=\"346\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-24.png\" alt=\"types of Business Plan\" class=\"wp-image-4714\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-24.png 592w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-24-300x175.png 300w\" sizes=\"(max-width: 592px) 100vw, 592px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Start-up business plan<\/h3>\n\n\n\n<p>This type of business plan includes sections that describe the kind of company, purpose, product and service that the start-up is going to provide. The investors will require the <strong><em>financial analysis<\/em><\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Financial_analysis\">[1]<\/a><\/sup> with spreadsheet providing detailed information about financial areas not limited to income, benefit and cash flow projections.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Internal business plan<\/h3>\n\n\n\n<p>It is drafted to\ntarget the specific group of people within the business, like the marketing\nteam which needs to analyze a particular project. An internal business plan\ndescribes the current position of the company, which includes operational\ncosts, profitability, and calculations during the project.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Strategic plan<\/h3>\n\n\n\n<p>The strategic\nbusiness plan is a plan laying down the foundation of a company. It varies from\ncompany to company. The company includes the following five elements in its\nstrategic business plan-<\/p>\n\n\n\n<ul><li>Vision;<\/li><li>Mission\nstatement;<\/li><li>Success\nfactors;<\/li><li>Objective\nachieving strategies;<\/li><li>Implementation\nschedules.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Feasibility plan<\/h3>\n\n\n\n<p>Feasibility\nBusiness plan describes the need for product or service the company is offering\nand capital required. This type of plans recommendations for further growth.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Operational plan<\/h3>\n\n\n\n<p>These are the\ninternal plans which describe the elements that are related to the company\noperations. This summarizes employee responsibility.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Growth Plan <\/h3>\n\n\n\n<p>These are the in-depth description of proposed growth, that is drafted for the internal as well as external purpose. It includes a complete description of the company. The plan provides detailed information to the potential investor. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_business_plan_process\"><\/span>What\nis the business plan process?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The business plan process is as follow-<\/em><\/strong><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"591\" height=\"354\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-25.png\" alt=\"business plan process\" class=\"wp-image-4715\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-25.png 591w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-25-300x180.png 300w\" sizes=\"(max-width: 591px) 100vw, 591px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Generation of idea<\/h3>\n\n\n\n<p>It is the first step in the <a href=\"https:\/\/corpbiz.io\/business-plan\"><strong>business planning process<\/strong><\/a>. It distinguishes entrepreneurs from the usual business. Sources of new ideas that entrepreneurs can get are from-<\/p>\n\n\n\n<ul><li>Customers<\/li><li>Existing\ncompanies<\/li><li>Research\nand development<\/li><li>Employees<\/li><li>Dealers\nand retailers<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Environmental scanning<\/h3>\n\n\n\n<p>The next step is\nto scan the factors that will affect the business ideas. The elements are\nexternal and internal environment surrounding the business<\/p>\n\n\n\n<ul><li>External environment includes-<\/li><li>Socio-cultural appraisal<\/li><li>Technological appraisal<\/li><li>Economic appraisal<\/li><li>Demographic appraisal<\/li><li>Government appraisal<\/li><li>Internal environment includes-<\/li><li>Raw materials<\/li><li>Production<\/li><li>Finance<\/li><li>Market<\/li><li>Human resource<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Feasibility analysis<\/h3>\n\n\n\n<p>It refers to\nconduct a detailed report on every aspect that is relevant to the business. The\nanalysis includes-<\/p>\n\n\n\n<p>Market analysis\nis undertaken to calculate the demand and market share of products and services\nin the future.<\/p>\n\n\n\n<p>Technical and\noperational analysis is conducted to assess the\nfunctional ability of the proposed business enterprise<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Project report preparation<\/h3>\n\n\n\n<p>It is a document\nwhich describes step by step strategies involved in running the business.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Evaluation, Control And Review<\/h3>\n\n\n\n<p> The company operates in a dynamic environment, so it has to monitor and review strategies as well as policies to compete in an existing market. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_content_of_the_project_report\"><\/span>What is the content of the project report?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li><strong>Cover page<\/strong> <\/li><\/ul>\n\n\n\n<p>Cover page of the project report\ncontains the title of the project, name, address so that the person reading the\nreport can quickly contact the entrepreneur if there are any queries of the\nreport.<\/p>\n\n\n\n<ul><li><strong>Table of contents<\/strong>:<\/li><\/ul>\n\n\n\n<p>Table of content consists of topics\ncovered in the project report along with the page number.<\/p>\n\n\n\n<ul><li><strong>Executive summary<\/strong>:\n<\/li><\/ul>\n\n\n\n<p>It has to be written after the\ncompletion of the project report as it gives brief gist of the project.<\/p>\n\n\n\n<ul><li><strong>Company information and industry<\/strong>:<\/li><\/ul>\n\n\n\n<p>The ownership form of the company, which contain the reason for forming into the proposed plan and It can also consist of the SWOT analysis of the company<\/p>\n\n\n\n<ul><li><strong>Technical plan<\/strong>:<\/li><\/ul>\n\n\n\n<p>The critical aspect is analyzed\nduring the technical feasibility. This report should be highlighted. The choice\nof the product and service that is to be offered should be justified. <\/p>\n\n\n\n<ul><li><strong>Marketing plan: <\/strong><\/li><\/ul>\n\n\n\n<p>This plan should focus on the industry and market feasibility that is conducted at an earlier stage. It describes the pricing policy, market research, product to be offered by the company, marketing strategy promote the product and target customers.<\/p>\n\n\n\n<ul><li><strong>Operations plan:<\/strong><\/li><\/ul>\n\n\n\n<p>It explains the innovative idea\nthat is involved in the process of production, which makes it better when\ncompared to existing competitors. <\/p>\n\n\n\n<ul><li><strong>Organizational plan: <\/strong><\/li><\/ul>\n\n\n\n<p>It provides information about the\nmanagement team who are part of the company. It focuses on the technical skills\npossessed by the employees in the company.<\/p>\n\n\n\n<ul><li><strong>Project timeline:<\/strong>\n<\/li><\/ul>\n\n\n\n<p>It includes the network diagram,\nwhich illustrates the time duration required for the project. The graph shows\nthe various activities in the project, which are organized and the time\nduration required for the execution of the project.<\/p>\n\n\n\n<ul><li><strong>Critical risk and assumption<\/strong>: <\/li><\/ul>\n\n\n\n<p>It explains the various assumption\nmade during the creation of the company like considering the previous sales\nforecast. There can be multiple risks involved in the product and kind of\nservice company is planning to offer <\/p>\n\n\n\n<ul><li><strong>Social plan: <\/strong><\/li><\/ul>\n\n\n\n<p>It explains how the company\nproject will benefit society. It should highlight how a company will generate\nemployment opportunities and lead to skill development, provision of goods and\nservices, utilization of resources etc. <\/p>\n\n\n\n<ul><li><strong>Exit strategy: <\/strong><\/li><\/ul>\n\n\n\n<p>It is a negative aspect of the business.\nStill, the company should explain how they would close down the business if the\ncompany is not able to earn the expected profit, the investors will be keen to\nknow how their investment can be recovered.<\/p>\n\n\n\n<ul><li><strong>Financial plan: <\/strong> <\/li><\/ul>\n\n\n\n<p>It is an essential part of the report which will contain brief content all the sections with monetary terms. It explains the financial composition of the company, sources through which the company has acquired finance, the total expenditure incurred by the company.  <\/p>\n\n\n\n<ul><li><strong>Conclusion:<\/strong><\/li><\/ul>\n\n\n\n<p>The report should be ended on a positive note so that the readers develop a positive image of the report.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Final_thought\"><\/span>Final thought<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Every business needs to have a plan for attracting investors and to provide business with a direction. A business plan plays a vital role in the success of the business. It contains detailed plan budget and objective being set for the business.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/online-trade-license-before-commencing-business-in-local-municipal-area\/\">Planning Business set up in Local Municipal Area; Trade License Should be the First Requirement<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A business plan is a document that is prepared by the entrepreneur, which describes all the relevant internal as well as external information that is required in starting a new business. It is a combination of the functional plan like finance, marketing, human resource, and manufacturing plan related to business activity. Importance of Business Plan [&hellip;]<\/p>\n","protected":false},"author":18,"featured_media":4716,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[390,128],"tags":[389],"acf":{"service_id":"356"},"authorName":"Sakshi Srivastava","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/IMG-20180130-WA0007.jpg","authorDescription":"Sakshi has pursued B.B.A.LL.B.(IPR Hons.). She is an avid reader and is keen to gather and share her knowledge on the subjects relating to IPR, Company Law and GST. Priorly she has worked as a legal researcher and vide her articles she aims at improving the core knowledge of the subjects to the masses.","postViews":31539,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/4707"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=4707"}],"version-history":[{"count":10,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/4707\/revisions"}],"predecessor-version":[{"id":18178,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/4707\/revisions\/18178"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/4716"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=4707"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=4707"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=4707"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}