How to write a business plan book

For venture companies looking for funding, the business plan book is the company's phone call card. The quality of a business plan often determines the success or failure of an investment transaction.
For start-up venture companies, the role of the business plan is particularly important. A project that is brewing is often vague, and the pros and cons are written by developing a business plan book. See it later and then one by one. Entrepreneurs can have a clearer understanding of this project. It can be said that the business plan book first sells the enterprise to be created in the plan to the entrepreneur himself.
Second, the business plan book can also help sell the venture companies in the plan to venture capitalists. One of the main purposes of the company's business plan is to raise funds. Therefore, the business plan must explain:
The purpose of starting a business – why take risks, spend energy, time, resources, and money to start a venture?
How much is needed to start a business? Why do you have so much money? Why are investors worth investing in this? For established venture companies, the business plan can set a more specific direction and focus for the development of the company, so that employees understand the business objectives of the company and encourage them to work for a common goal. More importantly, it enables the company's funders, suppliers and sellers to understand the company's operating conditions and business objectives, and persuade the funders to fund the further development of the company.
It is for these reasons that the business plan book will be the most important one in the business archives written by entrepreneurs. So how do you develop a business plan book?
First, how to write a business plan book that can not give investors enough information and can not make investors excited about the business plan, the final result can only be thrown into the garbage bin. In order to ensure that the business plan can “hit the target”, the entrepreneur should do the following:
1. Concerned products In the business plan book, all details related to the company's products or services should be provided, including all surveys conducted by the company. These questions include: What stage of development is the product in? What is its uniqueness? What is the way companies distribute products? Who will use the company's products, and why? What is the production cost of the product and what is the selling price? What is the plan for companies to develop new modern products? Pull the funder into the company's products or services, so that the funder will be as interested in the product as the entrepreneur. In entrepreneurial plans, entrepreneurs should try to describe everything with simple words—the definition of goods and their attributes is very clear to entrepreneurs, but others do not necessarily know what they mean. The purpose of developing a business plan book is not only to convince the funder that the company's products will have a revolutionary impact in the world, but also to convince them that the company has the arguments to prove it. The description of the product in the business plan book should make the funder feel: "Hey, how wonderful and exciting this product is!"
2. Dare to compete In the business plan, entrepreneurs should carefully analyze the situation of competitors. Who are the competitors? How does their product work? What are the similarities and differences between competitors' products and their products? What is the marketing strategy adopted by competitors? To clarify the sales, gross profit, income and market share of each competitor, and then discuss the competitive advantages of the company relative to each competitor, it is necessary to show investors that the customer prefers the company because: The company's products are of good quality, fast delivery, moderate positioning, reasonable price, etc. The business plan book should make its readers believe that this company is not only a strong competitor in the industry, but also will be the industry leader in the future. By. In the business plan book, entrepreneurs should also clarify the risks that competitors bring to the company and the countermeasures the company takes.
3. Understanding the market entrepreneurship plan should provide investors with in-depth analysis and understanding of the target market. It is necessary to carefully analyze the impact of economic, geographic, professional and psychological factors on the consumer's choice to purchase the company's products, and the role of various factors. The business plan should also include a major marketing plan that outlines the areas in which the company intends to conduct advertising, promotion, and public relations activities, and clarifies the budget and benefits of each activity. The business plan should also briefly describe the company's sales strategy: Does the company use an outside sales representative or an internal staff member? Is the company using resellers, distributors or franchisors? What type of sales training will the company offer? In addition, the business plan should pay special attention to the details of the sale.
4. The action plan of the company that indicates the course of action should be unsolvable. The following questions should be clarified in the business plan book: How do companies bring products to market? How to design a production line and how to assemble a product? What raw materials do you need for production? What production resources do you need for production resources? What is the cost of production and equipment? Does the enterprise buy equipment or rent equipment? Explain the fixed and variable costs associated with product assembly, storage, and delivery.
5. Demonstrate your management team to turn a mind into a successful venture. The key factor is to have a strong management team. Members of this team must have high professional and technical knowledge, management skills and years of work experience, to give investors a feeling: "Look, who is in this team! If this company is a football team, They will always enter the World Cup finals!" The manager's function is to plan, organize, control and guide the company's actions to achieve its goals. In the business plan book, we should first describe the entire management team and its responsibilities, but then introduce each manager's special talents, characteristics and accomplishments, and describe in detail how each manager will contribute to the company. Management objectives and organizational chart should also be clearly defined in the business plan book.
6. The summary of the project in the excellent project summary business plan is also very important. It must be of interest to the reader and eager to get more information, it will leave a lasting impression on the reader. The summary of the project will be the last part of the entrepreneur's writing, but it is the first thing the funder wants to see. It will extract the most relevant details from the plan to raise funds: including the basic situation inside the company, the company The ability and limitations of the company's competitors, marketing and financial strategies, the company's management team, etc. are concise and vivid summary. If the company is a book, it is like the cover of the book. If you do well, you can attract investors. It will give venture capitalists the impression that "this company will become a giant in the industry, and I can't wait to read the rest of the project."
Second, the contents of the business plan book
1. The summary of the project summary plan is listed at the forefront of the business plan book, which is the essence of the enriched business plan book. The project summary covers the main points of the project, so that it can be seen at a glance, so that readers can evaluate the audit and make judgments in the shortest possible time.
The summary of the plan generally includes the following contents: company introduction; main products and business scope; market overview; marketing strategy; sales plan; production management plan; managers and their organizations; financial planning;
When introducing a company, we must first explain the idea of ​​starting a new business, the formation of a new idea, and the goals and development strategies of the company. Second, we must explain the current situation of the company, the past background and the business scope of the company. In this part, we must make an objective review of the company's past situation and not avoid mistakes. Pertinent analysis tends to win trust, making it easy for people to agree with the company's business plan. Finally, I would like to introduce the entrepreneur's own background, experience, experience and expertise. The quality of entrepreneurs often plays a key role in the performance of the company. Here, entrepreneurs should try to highlight their strengths and express their strong entrepreneurial spirit to make a good impression on investors.
In the summary of the plan, the company must also answer the following questions: the industry in which the company is located, the nature and scope of the business; the content of the main products of the enterprise; the market where the enterprise is, who is the customer of the enterprise, and what are their needs; Who are the partners and investors of the company; who is the competitor of the company, and what influence the competitor has on the development of the company.
The abstract should be as concise and vivid as possible. In particular, it is necessary to elaborate on the differences between the companies and the market factors for their success. If the entrepreneur knows what he is doing, the summary is only 2 pages long. If the entrepreneur does not understand what he is doing, the summary may have to write more than 20 pages. Therefore, some investors will “pick out the grain from the chaff” according to the length of the abstract.
2. Product introduction When investigating an investment project, one of the most important concerns of investors is whether the products, technologies or services of the venture companies can solve the problems in real life or whether the products of the venture companies can help. Customers save money and increase revenue. Therefore, product introduction is an indispensable part of the business plan book. In general, the product description should include the following: product concept, performance and characteristics; main product introduction; product market competitiveness; product research and development process; development of new product planning and cost analysis; product market prospects; Product brand and patent.
In the product introduction section, the entrepreneur should give a detailed explanation of the product, indicating that it is accurate and easy to understand, so that investors who are not professionals can understand. In general, product introductions must be accompanied by product prototypes, photos or other introductions. In general, the product introduction must answer the following questions: What problems can the customer want to solve in the company's products, and what benefits can the customer get from the company's products? What are the advantages and disadvantages of the company's products compared with the competitor's products, why do customers choose their products? What kind of protection measures does the enterprise take for its own products, what patents, licenses, or agreements have been reached with the patent-issued manufacturers? Why does the company's product pricing make the company generate enough profits, why do users buy the company's products in large quantities? How do companies improve the quality and performance of their products, what plans companies have for developing new products, and so on. The content of the product introduction is relatively specific, so it is relatively easy to write. While it is necessary to praise that your products are for sales, it should be noted that every promise made by the company is “a bond” and must be worked hard to cash. It is important to remember that entrepreneurs and investors have established a long-term partnership. The promise of empty mouth can only be enjoyed for a while. If a company fails to honor its promises and cannot repay its debts, the credibility of the company will inevitably be greatly impaired, and it is therefore disappointing for the real entrepreneurs.
3. After the personnel and organizational structure have products, the second step for entrepreneurs is to form a combative management team. The quality of enterprise management directly determines the size of business risks. High-quality management personnel and good organizational structure are important guarantees for managing a good enterprise. Therefore, venture capitalists will pay special attention to the evaluation of the management team.
Corporate managers should be complementary and team-oriented. A company must have specialized personnel responsible for product design and development, marketing, production operations management, corporate finance and other aspects. In the business plan book, it is necessary to clarify the key management personnel, introduce their abilities, their duties and responsibilities in the company, their past detailed experience and background. In addition, in this part of the business plan book, the company structure should also be briefly introduced, including: the organization chart of the company; the functions and responsibilities of each department; the responsible person and main members of each department; the company's compensation system; The company's shareholder list includes stock options, ratios and privileges; board members of the company; background information of the directors.
4. Market Forecasts When companies want to develop a new product or expand into a new market, they must first make market forecasts. If the outcome of the forecast is not optimistic, or if the credibility of the forecast is doubtful, then the investor will have to take on greater risk, which is unacceptable to most venture capitalists. Market forecasting first predicts demand: Does the market have a demand for this product? Can the level of demand bring the desired benefits to the company? What is the size of the new market? What is the future trend of demand development and its status? What are the factors that influence demand? Secondly, the market forecast should also include the analysis of the market competition situation - the competitive landscape faced by enterprises: What are the main competitors in the market? Is there a market gap that is beneficial to the company's products? What is the estimated market share of the company? How does the company's entry into the market cause competitors to react, and what impact will these reactions have on the company? and many more.
In the business plan book, the market forecast should include the following: an overview of the market status; an overview of competitors; target customers and target markets; market position of the company's products; market geography and characteristics. The forecast of the risk enterprise on the market should be based on a rigorous and scientific market survey. The market faced by venture companies has inherently more uncertain and elusive features. Therefore, venture companies should try to expand the scope of information collection, pay attention to the prediction of the environment and adopt scientific forecasting methods and methods. Entrepreneurs should bear in mind that market forecasts are not imagined out of thin air, and that understanding market errors is one of the most important reasons for business failure.
5. Marketing strategy marketing is the most challenging part of business operations. The main factors affecting marketing strategy are: the characteristics of consumers; the characteristics of products; the status of enterprises themselves; and the factors of market environment. The final impact on marketing strategies is marketing costs and marketing effectiveness factors. In the business plan book, the marketing strategy should include the following: the choice of market institutions and marketing channels; marketing teams and management; promotional programs and advertising strategies; price decisions. For start-ups, because of the low visibility of products and companies, it is difficult to enter the stable sales channels of other companies. Therefore, companies have to temporarily adopt high-cost and low-efficiency marketing strategies, such as selling merchandise, smashing merchandise advertisements, giving profits to wholesalers and retailers, or handing them over to companies that are willing to distribute. For the development enterprise, on the one hand, it can use the original sales channels, on the other hand, it can also develop new sales channels to adapt to the development of the enterprise.
6. The manufacturing plan in the Manufacturing Business Plan should include the following: product manufacturing and technical equipment status; new product launching plans; technical upgrades and equipment renewal requirements; quality control and quality improvement programs.
In the process of seeking funds, in order to increase the value of the company's assessment before investment, entrepreneurs should try to make the manufacturing plan more detailed and achievable. In general, the manufacturing plan should answer the following questions: What is the condition of the plant and equipment required for the production of the enterprise; how to ensure the stability and reliability of the new product when it enters the scale production; who is the introduction and installation of the equipment, who is Supplier; design of the production line and product assembly; supplier's lead time and resource demand; production cycle standard formulation and production planning; material demand planning and assurance measures; quality control What is the method; other related issues.
7. Financial planning Financial planning requires more effort to do specific analysis, including cash flow statements, balance sheets, and the preparation of income statements. Liquidity is the lifeline of an enterprise. Therefore, when a company starts or expands, it needs to have a well-planned plan and strict control in the process of liquidity. The profit and loss statement reflects the profitability of the enterprise. It is the operation of the enterprise for a period of time. After the business results; the balance sheet reflects the state of the enterprise at a certain moment, investors can use the ratio indicators obtained from the data in the balance sheet to measure the business status of the company and the possible return on investment.
Financial planning generally includes the following: conditional assumptions for the business plan book; projected balance sheet; estimated income statement; cash income and expenditure analysis; source and use of funds.
It can be said that a business plan generally outlines what entrepreneurs need to do during the fundraising process, while financial planning is a support and explanation of the business plan. Therefore, a good financial plan is critical to assessing the amount of money required by a venture company and increasing the likelihood that a venture company will obtain funding. If the financial planning is not well prepared, it will give investors the impression that the management personnel lack experience, reduce the evaluation value of the risk enterprise, and increase the business risk of the enterprise. How to formulate the financial plan? This depends first and foremost on the vision of the venture company – whether to create a new product for a new market or to enter an existing market with more financial information.
Startups that focus on a new technology or innovative product cannot refer to data, prices, and marketing methods in existing markets. Therefore, it has to predict its own growth rate and possible net profit, and sell its ideas, management team and financial model to investors. Venture companies that are ready to enter an existing market can easily explain the size and improvement of the entire market. Venture companies can plan the sales scale of the company for the first year based on the information obtained in the target market.
The financial planning of the company should be consistent with the assumptions of the business plan. In fact, financial planning and enterprise production planning, human resources planning, marketing plans, etc. are inseparable. To complete financial planning, the following questions must be clarified: How much is the product issued during each period? When did the product line expand? What is the production cost of each product? What is the pricing for each product? What distribution channels are used and what are the expected costs and profits? Need to hire those types of people? When is the employment started, what is the salary budget? and many more.
3. After the completion of the business plan, the entrepreneur should check the plan book again to see if the plan can accurately answer the investor's questions and strive for investors' confidence in the company. In general, the plan can be checked from the following aspects:
1. Does your business plan book show you have experience managing a company? If you lack the ability to manage your company, be sure to state that you have hired a business guru to manage your company. 2. Does your business plan book show that you have the ability to repay the loan. Be sure to provide a complete ratio analysis to prospective investors.
3. Does your business plan book show that you have conducted a complete market analysis. Let investors believe that the amount of product you have stated in the plan is true.
4. Whether your business plan book is easy to be understood by investors. Entrepreneurship plans should be indexed and cataloged so that investors can easily access the chapters. In addition, it should be ensured that the flow of information in the catalog is logical and realistic.
5. Is there a summary of the project in your business plan book and put it at the forefront? The plan summary is equivalent to the cover of the company's business plan book, and investors will look at it first. In order to keep investors interested, the summary of the project should be fascinating.
6. Is your business plan book all correct in grammar? If you can't guarantee it, then it's best to ask someone to check it out for you. Spelling mistakes and typographical errors in the book can quickly lose opportunities for entrepreneurs.
7. Whether your business plan book can dispel investors' doubts about products/services. You can prepare a product model if needed. Every aspect of the business plan book will have an impact on the success of fundraising. Therefore, if you lack confidence in your business plan, then it is best to check out the guide to writing a plan or ask a dedicated consultant.

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