Step 6 - How to “draft” the perfect business plan?

After gathering all the information in the previous steps you need to put it all down in the form of a clearly understandable business plan.

It is always good to write two business plans, a detailed one for your self and a less detailed one for any one else who wishes to review your business plan and does not need to know all the minor details about how the business shall be run.

I. Summary
          A. Business Description
               1. Name
               2. Location
               3. Product(s)
               4. Market and competition
               5. Management experience
          B. Business definition goals and objectives
          C. Summary of financial needs and application of funds

II. Market Analysis
          A. Description of total market
          B. Industry trends
          C. Target Market
          D. Competition

III. Products or Services
         A. Description of product line
         B. Proprietary position: patents, copyrights and legal issues.
         C. Comparison to competitors products, operations etc.

IV. Manufacturing Processes (If Applicable)
         A. Materials
         B. Source of supply
         C. Production methods

V. Marketing strategy
         A. Overall strategy
         B. Pricing policy
         C. Method of selling, distributing, and servicing products

VI. Management Plan
         A. Form of business organization
         B. Board of directors composition
         C. Officers: organization chart and responsibilities
         D. Resumes of key personal
         E. Staffing plan/number of employees
         F. Operating plan for the next one or two years

VII. Other Pertinent Information, Plans

Once your business plan is ready, you will want to go though it step by step and revise it. Once this is done, you may submit the business plan to investors to obtain the capital that is required for setting up the business.

During the startup process, you will have to review and revise the plan again and again. Once your business is setup, your business objectives and other such specific details will change from time to time. Change the business plan to accommodate for these changes.

Next - How to raise the capital required? >>

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Table Of Contents

  1. How to start a company? – Introduction
  2. Is your new business idea “really” that brilliant?
  3. How to make a “perfect” business plan? & Why make one?
  4. Business plan - Step 1 – Understanding your business!
  5.             Step 2 – What do “you” want? (Personal objectives)
  6.             Step 3 – How to form business objectives? & Why?
  7.             Step 4 – How to make the “right” business decisions?
  8.                      - Making the right legal decisions
  9.                      - Making the right production decisions
  10.                      - Making the right hiring decisions
  11.                      - Making the right inventory decisions
  12.                      - Making the right marketing decisions
  13.             Step 5 – Estimating the capital required
  14.             Step 6 – How to “draft” the perfect business plan?
  15. How to raise the capital required for your business?