5 Stages of Developing a Business Plan Before Entering the Business World

Being a businessman may be the dream of many people. A solution, an opportunity that can be seen and exploited, and careful planning will be perfect with consistent execution. The existence of a business plan then becomes important so that whatever idea or business you have can really develop to provide the money you expect.

To learn more about this business plan, you can look at each of the following sections: Starting from understanding the types and reasons why a business plan is important to how to compile it, you can see each of these points.

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What is a Business Plan

The business plan itself is a written draft that contains goals and steps that must be taken to achieve them. In other words, a clear framework or strategy for what your business's goals are and how you intend to attain them.

This file is therefore required as a guideline, a handle, when making a short-, medium-, or long-term choice for the business you have or will establish.

You may also use the design to attract investors, who can contribute funds injections as well. As a result, the company you lead has more financial flexibility.

Various Types of Business Plans

Before getting into the reasons why you need this plan, it would be better if you also knew that business plans have several different types. In order not to be wrong in making and conceptualizing it, you can take a quick look at the types here.

Operation business plan is a business plan designed for internal companies. Its contents are the operational plans and policies of the enterprise and the description of the responsibilities of each element of the enterprise.
Growth business plan is a plan that explains the future business growth agenda and can be used for internal and external interests of the company.
Development business plan is a complete description of the business to be created and contains business administration, organizational structure, and the responsibilities of each employee.
Startup business plan is a description of the startup to be built and contains the offering of goods and services to customers, market evaluation, marketing structure, risk management, and other managerial structures.
Strategic business plan is the most complicated type because it explains the strategy in detail to achieve company targets.

Then Why is a Business Plan Important for a Company?

The business plan can be considered a roadmap, which you will use to direct the course of the business. So, his / her position and role in a company are very important and mandatory.

But beyond that, referring to what is conveyed in one of the investree.id articles, there are at least six main benefits to the existence of this file. More comprehensively, here is the explanation.

1. Business Guidelines

With a solid business plan, you can know where the business will go over time. This main framework can help you when facing problems because you have clear guidelines on risk management that have been foreseen.

The challenges that are present, which have been mapped from the beginning, can be overcome with better and more informed decisions. This way, challenges can be turned into opportunities, and business opportunities grow even greater.

2. In Terms of Capital

You have sufficient funds in your situation; certainly, launching a new business does not necessitate dealing with financial matters. But for those of you who still need capital, a business plan can be very helpful.

Because with this file, you can make a proposal to the owner of capital to invest his capital in the business you plan. Obviously, the file compiled must be comprehensive and have good details so that prospects can see it.

But you can at least try to raise funds from investors or other financial organizations.

3. Considerations in Making Decisions

The business plan that you make can also help you when you must make serious decisions and considerations related to the company. Because there are listed business targets and goals, you can make considerations based on their relevance to this.

All decisions must certainly be in accordance with the goals and direction of the business to be achieved.

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4. Know Business Goals and Priorities

In managing a business, you will definitely have a clear priority scale. Without this, the decisions taken can have a negative impact on the business and are not in line with the targets that previously existed.

Every action the company takes will bring it closer to its main objectives because there is a clear business framework in place.

5. More Realistic Business Ideas

Wild business ideas have always been the main attraction in the realm of concepts. But this business idea must be returned to reality and adjusted to the target you have. Well, the business plan is again the handle you need for this matter.

Interesting ideas will be adapted to a more realistic form in line with the company's values. So everything executed will still go to the same point.

6. A Clear Picture to Customers and Investors

As mentioned in the previous capital point, this file can also be a kind of 'proposal' for submitting capital to investors so that the business you have gets an injection of funds. On the other hand, targeted customers will also get a clearer picture of the products and values offered by your business.

Steps to Develop a Business Plan

Speaking of the preparation steps, broadly speaking it will then be grouped into five main stages.

1. Business research

The first step you can take is to do business research, because you need solid data to make a good business plan

2. Vision, mission, and goals

Second, set the vision, mission, and goals of the business you want to build so that it can be broken down into real steps that will be executed

3. Business profile

Business profiles can be filled with the background of business establishment, what products are offered, ownership of resources in the business, target market, and so on

4. Record financial transactions

This section will be a highlight because it contains how you plan financial allocations, and future business financial projections

5. Marketing strategy

Finally, you also have to design a marketing strategy and real execution steps, so that the plan prepared can be executed well and measurably

Also read: Understand What Insurance Is, the Different Types, and the Top 5 Reasons Why You Should Have the Right Insurance

It's not difficult, isn't it, to understand the business plan with the explanation above?

Planning a business is not an easy thing, but that does not mean it is impossible. If there is willingness and careful planning, the preparation of a business plan can be done well.

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Source:

https://www.staffany.id/blog/manfaat-business-plan/#:~:text=Business%20plan%20bisa%20membantu%20bisnis,business%20plan%20sebagai%20bahan%20evaluasi.
https://blog.investree.id/bisnis/5-manfaat-bisnis-plan-dalam-mengembangkan-usaha-anda/
https://investaadvisor.com/manfaat-dan-tujuan-business-plan/
https://www.hashmicro.com/id/blog/business-plan-pengertian-manfaat-dan-cara-membuatnya/