How to develop effective business plan for an organization
It is important to do a lot of planning before undertaking any business so that one can know what to expect from it. A business plan is a formal statement that conveys the details of any business (Business Assignment Help). It defines the objective and goals of the business and how they can be achieved. Business plans are developed to arrange the means required for accomplishment of the business goals. A business plan sets a sequence of activities which can be monitored over a particular interval of time (Small Business Plan Assignment Help). To develop an effective business plan the following points needs to be considered:
- There should be clarity in the business plan. The language should be simple and easy to understand. Only one idea should be made clear in one sentence. Indulging too many things in just one sentence does not give an exact picture of the content.
- A logical sequence should be followed to explain the ideas and facts backed by the figures and numbered wherever they are appropriate.
- Market research should be done which will help in understanding the need of the product and its competitor brand in the market. This helps in defining the price of the product, taking into account the price of the same product with different brand name. The success of any business depends upon how well the market research has been executed.
- The skills, experience, resources and persons required to meet the expected outcome should be contained in the business plan. This will clear whether the business plan is technically sound or not. For example if a person is planning to open a new gym then the area, machinery, equipments and trainers required should be calculated. This also reflects that the founders themselves are determined and committed to their business.
- The business plan should contain the information about the benefits of the product. This is the only way by which its usefulness can be projected. Statements made to describe the benefits of the products should be true and does not overstate. It should also mention how better the product is when compared with the other brand. This can attract the investors who may see the product to be profitable to invest in.
- The methodology which will be used to set things in a workable manner should be made clear in the business plan. The methods include how the product will be introduced in the market, the sales force it requires for its distribution in the beginning and when the sales increases and how the publicity and marketing will be done.
- The infrastructure of the office of the business should also be presented in the business plan. The role of different employees in the office also needs to be mentioned. Who will process the orders, finances will be looked by whom, who will attend the customers on call and solve their queries. All the work that will be required to be done in the department should be mentioned in the business plan.
- Financial targets such as expected turnover and profit for the first year and loan payoff schemes all should be made clear in the business plan.
- Lastly the business plan should contain a long term view which will define the future of the business.
A business plan should always be made considering the above mentioned points and needs to be looked upon regularly to ensure that the business is moving in the positive direction. Business plans should be strictly followed and not just made to mention it on papers .