How to prepare a project business plan step by step + ready business plan template
The main purpose of writing down a business plan is to define the business activity and your vision and perception of that business. Writing down your business plan on paper will motivate you to form a well-defined strategy for operation, marketing and financing and will convey this in a focused and accurate manner when seeking support from potential investors, team members and clients.
While other aspects affect the areas that should be part of your business plan, you should come up with clear answers to these questions in order to be able to finalize your strategy:
What is your business model - what do you do, and how do you do it? What are the main activities you will undertake? What is your target market? What are your main revenue streams? What are your main expenses? What is your pricing strategy? What is your sustainable competitive advantage?
In other words: How can you achieve sustainable status vis-à-vis your competitors?
You can take a resource-based view of your business activity and plan and document your business processes. For example: Running a small tea shop might sound like a very simple idea, but it is important to appreciate the thinking points around it so that the same idea can be applied to all businesses.
Example: the process of preparing tea
When a client request orders tea, the owner of the project needs to answer the following questions:
Who will make the tea? Where will the tea be made? What materials do I need? What equipment do I need? When can I serve tea? When will I receive my dues? In answering each of the aforementioned questions, the business owner explores and narrows the range of options available to him.
Who will make the tea?
Can I make the tea myself or should I hire someone else to do the work? Who is the right person to do this job effectively and successfully, and how do I find / find him / her? How much will it cost to hire that person? What are the terms and conditions that must be agreed upon with the new employee?
Where will the tea be made?
Should I work from a home kitchen, store, or mobile food truck? Decide about a location nearby that customers can easily reach?
What materials do you need?
This depends on the customer’s requirements as indicated.
Tea: What type of tea and brand does the customer prefer? How much tea is needed for each cup of tea? the milk: Will the customer take milk with tea? If so, what type of milk is: fresh, skimmed, powdered milk? How much milk should be used with tea? Sugar: Will the customer take sugar with tea? If so, what kind of sugar: white, brown, artificial sweetener? How much sugar does the customer need in tea?
What is the source of the water available to you?
Is it mineral water or tap water?
What is the amount of water needed to make a cup of tea?
Where will the required materials be supplied?
What is the necessary quantity of each material?
What are the quantities and packages in which the materials are provided?
How much should be stored? For a day, a week, or a month?
What equipment do I own or need?
Can you afford to buy the equipment or do you have the option to rent it out? Will you use a kettle or a stove? And what is its capacity? Do you have electrical connections to the boiler? Gas connections? How much does it cost to use electricity / gas?
Although it is a simple process, it is always a good idea to write the steps involved in order to ensure a smooth process in introducing a sustainable product:
For how long should the water boil? What is the preparation time for tea? When is milk added? When is sugar added? How is tea served? A cup and saucer, a large cup, or a glass cup? Who will serve the tea? Billing and collection When is the invoice presented to the customer? How are the funds collected?
How do you ensure customer satisfaction with the product? Think about your customers - do they read newspapers and newspapers, listen to the radio, use social media? How can existing business owners in your sector attract and maintain clients? Can you cooperate with partners who help you sell and distribute your products or services?
Define yourself – Marketing
Prepare and develop a marketing strategy for your business activity, in which you offer your services and business to the target market. Also, visiting potential clients helps strengthen the relationship and establish credibility in the market. There is no point in owning a business that no one knows about. Ensure that you have the marketing budget that you will employ and use in effective and efficient ways. There are many marketing channels through which you can promote your business activity – the optimal marketing decision can be made by choosing the right broker to deal with clients.
Build your business team
You may start out with a small team or you may not have a team at all. But it is important to recognize the need to supplement your skills with professionals with expertise in the relevant fields and assign them accordingly.
When recruiting team members, while ensuring that they have the necessary experience and knowledge, make sure that these individuals are compatible with you. Start your company by asking for people who are motivated and able to solve problems flexibly while having the capabilities of multiple tasks.
Based on your defined growth strategy, map your team’s needs in your business plan template, as follows:
What are the expected roles and responsibilities of the new hires?
What is the recruitment mechanism?
What channels will you follow in this?
What is the expected timeframe for exploration, interviewing, and recruitment?
Financial analysis provides an overview of your company’s performance in terms of operational efficiency and the ability to organize to meet its financial obligations.
Not all entrepreneurs have a strong background in finance and financial affairs, but it is very important for them to understand key terms and numbers, as well as seek the help of a person specializing in finance and accounting.
Avoid incurring any unnecessary expenses, reduce waste, and focus on how to do the same work in the most cost-effective manner. Get offers from a number of sources, giving you a better opportunity to negotiate and bargain with suppliers.
Cost management is the key to success. Therefore, you should ensure that the materials you need are purchased at the best price and that there is sufficient stock of them.
Collect your receivables in a correct manner and at the time they are due, employ your team in an effective manner and maintain their motivation.
The following is an example of the monthly statement of income and expenses for the Contracting Company / ABC Contracting LLC. Here it is important for you to understand your main costs and understand the prevailing trends to help you plan the future.