A Business Plan refers to a written guide or description of goals of the businesses. Generally, it is used by investment-seeking entrepreneurs to communicate their vision to potential investors. It...
As a pre-planned strategy can lead you from point A to point B; likewise, a well-framed business plan can be a roadmap to attain fruitful outcomes. While writing a business plan is a highly crucial step for a startup, one cannot deny that it is a daunting job. A successful business plan will provide answers of how’s, when’s, where’s, and show you the right direction. It gives a clear picture of a set of intended actions which you need to take to establish your business. This blog will provide an elaborative clarification of how to prepare a successful business plan in India.
What is the purpose of a Business Plan?
A business plan acts as a blueprint of your business operations. It layouts ways to perform different functions. The business plan not only helps to set some major financial goals, but it also helps to achieve them. It aligns a direction with every decision and offers the right solution to overcome an obstacle. For instance, if you want to seek the attention of investors, then you have to make a business plan. An ideal business plan must have a detailed description of your financial goals and how you will utilize the borrowed money. So the purpose of the business plan is to provide a step-by-step guide to start a new company or enlarge the current business.
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Types of Business Plan in India
There are different types of business plan that fits well with the nature and size of business. Let’s have a look at them:
Operational or Annual Business Plan: An operation business plan is a concise explanation of the internal operations of your company. It specifies implementation markers and deadlines for the next one year. Moreover, it outlines the roles and responsibilities of all the employees.
Lean Business Plan: A lean business plan holds the financial information of a company along with its vision and mission. It is a tool to make strategic plans for the growth and development of the company. Besides, such type of business plan does not include the company’s history.
External Business Plan: As the name suggests, an external business plan is solely for the outsiders. It is an ideal choice for the companies who want funds for their business. Thereby, this plan is like a formal document that extensively alike a loan application. One can consider it as an extended version of the lean business plan.
Strategic Business Plan: This type of business plan regulates the internal matter of business. It compiles all the fundamental elements together like the mission statement, critical success factors, business vision, implementation schedule, and strategies for achieving long-term and short-term objectives. Therefore, this is a master plan that consistently re-directs a company towards its primary goal.
Benefits of a Business Plan
Whether it’s a startup or a multinational company, every organization needs a successful business plan for seamless functioning of a business. Here are some key perks that you can yield from a business plan in India:
Helps to set priorities– A business owner must segregate the operations as per high-level and low-level priorities. A business plan eases the task of keeping track of the right things and helps to deploy the resources. Thus, it evenly allocates your efforts and time in a strategic manner.
Efficient regulation of changes– Having a good business plan in India means you can review assumptions, track the progress, and implement new techniques. It showcases an actual image of your present and future. Thus, it helps to bridge the gap in-between.
Optimize cash– An efficient business planning interlinks the dots in cash flow. To optimize the funds, one has to implement proper management of purchasing assets, repaying debts, sales on account and physical products. Even an established company has to suffer due the slow-paying clients and congestion in the cash flow. A business plan assist in identifying the problem and makes adjustments.
Real-time reminders to keep a track– The customers are always drawn towards quality products and services. Therefore, the main focus of any business should be on maintaining the quality of its services. It’s difficult to track end-to-end progress on a daily basis, so the best practice is to create a business plan to get a reminder of the priorities.
Things to incorporate in Business Plan in India
Preparing a business plan is not as easy as it may seem. You have to be creative and use analytical skills to layout a plan successfully. Ensure to incorporate these elements into your business plan to acquire success:
Gather Important Information: Collect, arrange, manage all the relevant information. Before putting random facts on a piece of paper, you must format a business plan and write a suitable heading along with proper context.
Executive Summary: An executive summary is a precise synopsis of the vision of your business. Further, it must include a brief about your products and services, the mission of the company, and financial goals.
A brief of products & services- The customers are always interested to know about that a company offers. Henceforth, write a lucid description of your products and services. Moreover, jot down the aspects of your products which make it better from the other products available in the market. Also, mention how your services will satiate the needs of your customers.
Financial Stature– After considering the customer’s viewpoint, you should also regard an investor’s perspective. Thereby specify your anticipated revenue for next year. Further, include a forecast of your project earnings of the coming second, third, fourth and fifth years.