Do You Need a Business Plan? Scientific Research Says Yes
In this article, we want to define a business plan as a strategic principle in business development and be able to explain the reasons for having a good business plan to improve your system.
Expressing your work and development ideas in an understandable format and in accordance with a principled and regular logic is called a business plan or so-called business plan. This business logic should be provided by a professional team so that the team, in interaction with the individual or team, can prepare a written document that summarizes the investor from beginning to end of the project and ensures the profitability of their investment. Reach.
What you will read in this article
- What is a business plan?
- Structure of a business plan
- Why do you need a business plan?
- Features of a good business plan
4.1. Short and concise
4.2. Identify the audience
4.3. Recognize competitors
4.4. planning
4.5. Consider all aspects
4.6. Courage
- The need to prepare a business plan for online businesses
- Things to consider when preparing a business plan for online businesses
6.1. Business ideas
6.2. Recognize the audience
6.3. Market analysis
6.4. Business size
6.5. Business goals
6.6. Basic needs
6.7. Performance model
6.8. Business Marketing Plan
6.9. Business exit plan
6.10. What exactly is your business?
6.11. What problem does your business want to solve (what is business)?
6.12. What do you offer?
6.13. What is your difference?
6.14. Where is your target market?
6.15. How do you prepare your raw materials?
6.16. What equipment do you need?
6.17. How do you find a customer?
6.18. What is your current source of income?
6.19. Where are you going to get?
6.20. Who is involved in your business?
6.21. How long does it take to realize the ultimate vision of your business?
- Should the business plan also have a depreciation plan?
- Why do some businesses succeed without a business plan?
- Who should design the business plan?
9.1. How many pages should the business plan have?
9.2. What should be the main purpose of business plans?
9.3. Types of business plans for business tasks
9.4. Using Mind map to design business plans
9.5. When can we edit our business plan?
9.6. Online business plans
What is a business plan?
Simply put, a business plan is a document that outlines the basics of your business, products, and services, the market you are retargeting, your goals for the business, and how to achieve those goals. he does. The business plan, which translates to “the Booker Plan”, is designed to help you achieve your business goals.
Once you have a clear and convincing business plan, you will focus on achieving your personal and financial goals at every step of the way. A good business plan will also encourage individuals and organizations such as banks to invest in your business. Business Plan is one of the most important programs that you should have when starting a business, Dr. Wise will help you to become more familiar with this issue.
Structure of a business plan
Every business plan has many details that will vary depending on the areas you are considering. When writing a business plan, you need to talk about your motivations and reasons for starting a business. You also need to identify the target market, the main competitors, and your differences with these competitors. The structure, content, and depth of the business plan depend on various factors such as the main goals of the business, the stages of starting a new business, an existing and independent company, or as an affiliate, the type of business or industry, financial status, company size, etc. have it.
Why do you need a business plan?
If we look at the business plan as a roadmap, we can better understand its importance. There are always different routes and options in front of you to go from a source and reach a specific destination. Which differ in different aspects such as time, cost, and different experiences. In fact, given our circumstances in economic activity and the available routes, we will come up with a suitable business plan.
There are many reasons to come up with a business plan, depending on the type of business you have and how to use a business plan. But the common denominator for all businesses is that a business plan is essential. After all, how can you start and grow your business without any plans to help you? There are several reasons why you may need a business plan, some of which include:
- If you want to get a bank loan, bring a partner for your business or turn your business into an investment. You need a business plan.
- To better understand your target market, qualifying your business ideas, researching competitors, and feasibility studies of different segments require a business plan.
- Where you are now and where you want to need a good little business plan. It also identifies the specific actions you need to take to reach your target position.
- A business plan will provide you with the essential information, strategy, and hiring culture, including managers and employees, that will grow your business.
- The financial part of your business plan can be based on your business budget and a useful tool for managing cash flow on a monthly basis.
Features of a good business plan
There are many things that can make a business plan different and appropriate to advance your business goals. Here are the items:
- Short and concise
Business plans should be short and concise for two reasons:
- Designs that have a lot of pages and a lot of text are usually boring and no one has the time to read a 100-page business plan. Since your main goal is to read the business plan you have written. It should be concise.
- A long business plan over time reduces your motivation to return to it and modify and reuse it and becomes useless after a while. Since the purpose of the compilation
Business plan It is necessary to refer to it several times and update its contents due to the changing conditions
- Identify the audience
Prepare your business plan in a way that is understandable to your target audience. Always remember that in many cases investors do not have your knowledge and are not scientists in your field. Therefore, in order to attract them, you need to make your business plan understandable and simple so that it is in line with the understanding and knowledge of all your contacts. This is especially important if your business has complex scientific processes and is confusing.
- Recognize competitors
Know your competitors to succeed. Knowing your competitors and their strengths and weaknesses is an important issue in advancing your goals. Writing a business plan without considering the competitive market in your business field cannot work as well as you expect in achieving results. Knowing the competitors and getting acquainted with the concepts of the competition will enable you to enter this field with the necessary power and by preparing a suitable business plan, you will be able to compete properly.
- Planning
Planning has always been one of the most important principles of economic activity. Your business plan should be in line with the plans you have for your intermittent courses. Without planning your business plan does not make much sense. As a result, your business plan represents your plans more than anything else and in order to achieve the business goals hidden in these plans.
- Consider all aspects
One of the most important principles in economic activities is to pay attention to important and decisive details. A business plan that is effective in your success, it is necessary to pay attention to all these important details in preparing it. In fact, in many cases, these things can put the business in a better position and make your business plan work better.
- Courage
Writing a business plan in its place is a difficult and time-consuming task and many business owners see it as a hindrance. But you should know that you should not be afraid to grow your business and if you have enough knowledge of your field of work, start working.
Many investors, startup owners, and entrepreneurs are not experts, and like you may have weaknesses in their field. Therefore, if you do not have a special university or educational degree in your field of work, be brave in writing a business plan and easily write a suitable and standard business plan for yourself.
The need to prepare a business plan for online businesses
The purpose of the collection is to provide appropriate and efficient solutions in preparing business plans for Internet businesses. Because generally, due to the way and method of work of such businesses, less attention is paid to preparing a business plan in it, and this issue can be a missing link in online businesses.
At first, glance, preparing a business plan for Internet businesses may be considered futile. But as mentioned, having a good business plan is like a roadmap and can get you to your planned goals faster. So, you cannot give up a business plan in online commerce. Keep in mind that having a business plan, in addition to the path and guide to achieving your internet business goals, gives a good view of the real situation of you and your competitors.
Things to consider when preparing a business plan for online businesses
- Business ideas
The most important element in online activities is the ideas that shape your business. In fact, having a topic that has led you to the Internet as a platform for selling, Digital marketing or providing services is the first step in your business plan. Identifying this idea is very important in achieving a successful business plan.
- Recognize the audience
The target audience in Internet businesses is an important key to achieving the right business plan. Every product or service that is offered online has its audience and if you act without knowing it, you will fail to find your true users. As a result, your business plan should be aimed at serving the real audience of your site or cyberspace.
- Market analysis
When preparing a business plan, you need to identify and examine the common domestic and global markets of your Internet business. You should analyze the available information obtained from the observations and researches of others and put it next to the information that is the result of your own observations and search methods. In fact, global experience in your online business is very helpful.
- Business size
You need to specify the production and supply of your product on the Internet. In fact, the part of the market that you want to cover is very effective in preparing your business plan. In the first steps, it is better to start from small markets so that you can expand it over time according to your business plan and reach the goals set in your business plan.
- Business goals
One of the most important steps in preparing an Internet business plan is to write down and define your online business goals. This is one of the three main pillars of improving your internet business and try to spend more time in determining it.
- Basic needs
One of the most important issues in online business is the basic needs for the business. In fact, your business plan goes according to these needs and primarily seeks to meet them. Because if we do not pay attention to them in our work path, it can be difficult to achieve the next goals.
- Performance model
In fact, it depends on the type of internet business you have and the direction of your business plan. In order to improve your business, you need to come up with a model to move your site forward. For example, the:
- Initially, we spend 3 hours a day on the site for three months. We add 3 products to the site every week and 2 articles every month.
- Content is prepared and translated by me.
- After 3 months, up to a year after launching the store, we have to add 4-5 products and 1-2 articles to the site every month.
- After 3 months, up to a year, we need to spend more time on our business: answering calls, preparing invoices, tracking customers, and… in this case, we need to work full time every day Let’s pay.
- During the one year after the launch of the online store, we will attend specialized exhibitions and enter into negotiations with manufacturers and importers of goods. At the very least, we will get to know them and have a list of them. We also introduce our business to them so that in the future we can negotiate our cooperation more easily and not be unfamiliar to them.
- If possible, take a marketing trip a year after launching your online store.
Our first and main goal is to collect information from sellers in different cities in several provinces and also to introduce the site to them. The second goal is to find a customer on the same trip.
- In the next 2 years, we will start working closely with one or two big and well-known sellers and do some sales activities through them. At the same time, we try to use their experiences and credibility and get to know the market better and more and become more familiar with manufacturers and wholesalers.
- Business Marketing Plan
In business, plan marketing is one of the most important things. You need to consider that any online activity to be successful should have the right marketing and audience engagement. For example, the:
- The basis of internet marketing is based on ” targeted email marketing” and “SEO” and in the field of internet
- Creating useful content and publishing it on the store blog and attracting a permanent audience
- Observe the principles of SEO and site optimization and attract customers through search engines
- Carrying out a marketing trip with the aim of introducing the business and collecting vendor information, telemarketing, and sending faxes and text messages to the collected numbers
- Creating a section on the site to receive visitors’ contact numbers, send special sales text messages, and send special text messages to sellers and partners (congratulations on holidays, the announcement of exhibitions and…
- Print catalogs, brochures, and promotional bags with logo and site address
Business exit plan
One of the hardest and most bitter parts of a business plan for an online business is how to close the business. Either way, every business has its ups and downs, and we may have to shut it down at some point. But what matters in such a situation is the correct way out of the business to prevent further harm to us.
This issue is also very important in internet business plan and we must include it in it. In a good business plan, even the right exit methods and business collection strategies should be included to prevent further damage in the event of a problem in our online business. Here are some of them:
- We will try to sell the site and related accessories at our current price. These belongings will include physical equipment as well as the collected database.
- We will close all services related to our business within two months. We inform regular customers and others who are connected to our business about the sale or closure of the site and introduce them to my reputable colleagues.
- Over time and from the beginning of the site, we have saved some income from work to support us in such days or other unfavorable conditions.
- After closing the job, we will definitely review and analyze it to find the problems and features of the job. We share these experiences with others and use them again if needed.
What exactly is your business?
In answer to the above question, it is better to finally present your business or entrepreneurial idea in one sentence. Try to come up with a relatively short and understandable title for your business idea with the simplest words and phrases possible. Complex phrases not only do not make your work attractive but also make your idea vague and incomprehensible.
Choose your title so that anyone with any level of knowledge can understand it. For example, if your idea is to produce natural crop fertilizers, you can write an understandable term next to the scientific title. For example: “Business Title: Production of Chloric Acid Sulfate (a Natural Fertilizer)”
- What problem does your business want to solve (what is business)?
Ideas come from needs. So, any business idea has the ability to solve a problem. You need to be able to convey the purpose of your work to someone who is studying your business plan correctly and clearly.
At this stage, by avoiding writing scientific terms, try to define your goal with simple literature. Remember, the simpler you write, the better your business plan or business plan.
Of course, the goals that most business plans pursue are in the areas of technology entering traditional businesses and how to make an activity easier. Such schemes can easily be fully explained in one paragraph.
- What do you offer?
What you offer in your business may be a utility or a service. So, you have to write the name of your device or service. Then specify how others use and access it. It may be your own idea of how people access a particular service; In this case, make your work more understandable by using examples.
- What is your difference?
If your business idea is similar to what is currently being done, you should consider a distinctive feature of your business that, if you want to attract an investor, will convince the person who wants to invest in your project. If your business is no different, not only will your business plan be flawed, but your business plan will not be accepted as a viable idea. A distinction can be the most important part of a business plan.
- Where is your target market?
Defining a target market for business makes the ability to do that work quite real. So, try to consider a specific target market for your products and services. Of course, this market should welcome your products in the real world and not just a paper title.
After identifying the target market, you can experimentally enter that market or just say what it says in that market and examine the reaction of that market. Of course, consulting with one or more skilled people can determine the target market much better for you.
- How do you prepare your raw materials?
If your business idea is for a manufacturing business that needs raw materials, you should cite your source of raw materials. You need to be able to buy these raw materials with the least number of intermediaries and as directly as possible.
The more intermediaries you buy, the higher the cost of buying your raw materials. Therefore, mentioning the primary source of materials can play an important role in advancing your project. For this reason, it should be included in the business plan.
- What equipment do you need?
If your business idea requires specific equipment to run, you should include that equipment in your business plan. Writing down the necessary equipment makes it easier to estimate their procurement costs. So, both you and your project investors need these titles.
- How do you find a customer?
Finding a client depends on your specific job market. If your target market is fully ready to accept your product, your customers will be in the same market. Sometimes your target market includes a large community.
This is especially true for Internet business ideas. Therefore, using new technology tools will be your best help to introduce and offer your product or service to the target market and its customers. Intangible and offline markets, major or minor customers and increase your customers can be directly tested.
What is your current source of income?
Your current source of income is important in terms of being able to measure your financial strength to support your business plan. If you have the financial strength, you cannot convince investors because they will tell you to invest yourself.
But usually, business projects that need to attract investors belong to people who do not have enough financial resources to support their project; In this case, you can encourage investors to support your business by stating the source and amount of your current income.
Of course, sometimes it’s not your personal source of income that matters, but the current state of the business that you did the basics of and you want to expand it that matters.
- Where are you going to get?
If all goes well, what will your business look like in the end? Providing a vision of the goal and describing the future of the business would be a good answer to this question. How much better if your business idea has the potential to become a top business. Therefore, this step will be one of the ideal steps in preparing a business plan for both you and the investors. Writing down why you do something and creating a strong vision can fully support you and your team emotionally.
- Who is involved in your business?
The people involved are your team. The people who work with you to run your business are an important option in getting it right. Therefore, if there are skilled and skilled people in your team, the possibility of getting the job done will increase many times over. People may be directly and indirectly involved in your work. Your job is to identify all of these people and write them down in your BP plan.
- How long does it take to realize the ultimate vision of your business?
Everything takes a relatively long time to stabilize and bear fruit. How long have you been waiting for your business to flourish? This period varies from six months to several years for different businesses. Try to set a reasonable time in your business plan to get your work done.
Your answers are, first of all, a document for proper planning in the direction of realizing a principled business. So, if your answers can convince you, it can certainly convince other people and even investors. Sometimes convincing experts to work together is harder and more complicated than convincing investors.
Of course, the presence of those experts can also be a seal of approval for investors. If you are a project expert yourself, raise this issue with more seriousness and emphasis on your business plan. Expertise is a big advantage that if the original owner has an idea, he can use it in the project path and get faster results. Because belief in a project happens to other people later than the original project owner.
Should the business plan also have a depreciation plan?
A good business plan can even include a justification plan for depreciating production projects or an exit plan for online projects. This plan is important in that it can be concluded that if for any reason it is not possible to advance the project in the next stages, how can it be removed ?!
In fact, what will be the minimum and maximum cost to leave a business ?!
Determining a business’s loss limit can be part of its business plan. But most people do not like to write about failures when it comes to ideas; So, they ignore this option.
Why do some businesses succeed without a business plan?
Designing a business plan is no guarantee of success for a business. We mentioned in the above section that a business plan can even include a plan to exit or dissolve a business. Therefore, the business plan only has the aspect of transparency. This plan is like a roadmap that can guide us.
Certainly, there are businesses that have succeeded even without a business plan; But this is not a reason for us to give up our roadmap. The success of business ideas depends on many factors. How to manage, financial strength, fair investors, professional and skilled team, proper marketing, quality products, risk-taking, time, and…. All of them play a role in approaching the final vision of work projects.
Today, psychologists even consider team spirit and team beliefs to be involved in business development. So, a business plan is only a small part of what we need to do before we start our business. Making excuses to avoid creating a work plan only deprives us of the necessary clarifications. Remember that a working idea is very weak and fragile at first. Our business plan or BP project can eliminate this fragility.
Who should design the business plan?
Many business project owners outsource their business plan design to others. This cannot be the right thing to do. How can someone else write a persuasive plan when the spark for starting a business is on your mind?
It is safe to say that you are the best person to write your business plan. You can get help from others in designing your business plan, but do not leave it to others in general.
How many pages should the business plan have?
You may be interested to know that the more workable your idea is, the more concise it can be. Sometimes a good idea can be presented on one page. Some work projects require more resources and equipment, so they need several pages to present better.
The shorter your business plan, the better you can review it. If your business plan is 100 or 200 pages, it will be difficult for others to read and it will be difficult for you to review and update it.
Long business plans do not mean they are better. So, avoid writing long business plans. If this is difficult for you at first, it is best to write down your initial design no matter how long it takes. Then review it and delete the extras and make the other contents more concise. Keep doing this until you come up with a short, concise and useful business plan.
What should be the main purpose of business plans?
The goal that a business pursues must be a specific and unique goal. A plan that offers multiple goals for the business will both confuse and confuse your plan. Projects that pursue multiple goals are thought to have less potential for implementation and success than projects that pursue only one specific goal. So, it is better to focus on only one goal so that your energy is not divided to achieve several goals.
Types of business plans for business tasks
There are several types of business plans, including the following:
- Mini- plan (small plan for small businesses)
This business plan includes the amount of capital required, marketing plan, turnover, financial balance, and revenue generation method that can be set in up to 10 pages. - Workplans (work plans or work plans)
Workplans can contain more information than miniplays. So, they are a more complete version of the business plan with which you can start your plan. - Presentation of the plan (business presentation program) Presentations of the plans are
usually taken out of paper and virtual pages and come in the form of oral plans that are suitable for presentation to experts or investors. - Business plan online or offline
if your business plan using the Microsoft Office suite (Office) to remove the offline, online. The advantages of using this type of design include the ability to share it online and its easy editing and development. Today, individuals and companies tend to bring their business plans online. Therefore, the use of online plans is increasing day by day.
Using a Mind map to design business plans
Mind Map is an online system for designing educational landscapes that can also be used to design business plans. Mind Map provides you with a regular mind map that can be easily manipulated and edited. With Mind Map, you can easily set up your business plans online at any level you want.
This app is very easy to use. So, turn your paperwork into a regular, online design with the help of Mind Map. Then share it with the people you care about.
When can we edit our business plan?
You can modify or edit your business plan if you want to make it better. You can write down any new ideas for your business. Then update your business plan at regular intervals (for example, once a week or once a month).
When updating your business plan, you end up with a comprehensive, flawless plan that can convince anyone if presented. Do not underestimate the power of updating and make time for it. Do not let your business ideas remain in the old and uncreative plans.
Online business plans
The idea of starting an online business or building an online store is growing every day. So, you can dedicate part of your work to running it online. For example, if you are planning to start a production workshop, divide your business plan into two parts:
- Business plan general business
- Business Online business implementation plan
You can use your digital marketing capabilities to get started and build your target market even before you start your business. To do this, start with the option of collaborating to sell businesses similar to your idea.
Start your own independent business by finding the right target market and loyal customers. By doing so, you will ultimately use virtual pages and the evolving technology of social networks to your advantage. Remember, you can not underestimate online tools and make the most of them.
Conclusion
What this article discusses is actually a way to improve the quality of Internet businesses with a business plan. This has a lot to do with our knowledge and planning for the internet business we are doing. A business plan is actually our roadmap for progress and achieving goals. This is also very important in online businesses and we need to plan and pay more attention to its details in our context.
By determining the effective steps in writing a suitable business plan, we come to the conclusion that for our business plan and achieving the goals, we need to pay more attention to the details and important issues of our internet business, and at the same time with courage and consideration. Develop your own business plan for our target community and getting to know more competitors.
We can mention intelligence and planning for our online business as the most important factors in achieving a good business plan and along with achieving business goals and progress in our career path.