What is a business plan?

Are you planning to introduce your idea to a university, professor or investor?

Business Plan: BP is a document that details how you handle all the important aspects of your business. Combines several other plans including financial plan, marketing plan, risk plan, etc. and ends up in a business plan.

Use clear and concise language (instead of begging and emotional language) to attract potential investors.

A good business plan defines where you are, where you want to be and how to get there. This is a “living document” that will grow and change with you and your ideas.

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The following are the key parts of a business plan.

What is the Executive Summary of a Business Plan?

The executive summary provides an overview of the whole concept of your business. This is the first part of your plan, but it’s best to write it when you have a clear understanding of the direction of your business. It should catch the reader’s attention (venture capitalists see hundreds of business plans).

Profile and business history

A business profile describes your business, including its name, location, and purpose. It also often contains information about business owners, such as their expertise, experience and education, that will underpin successful business operations.

Business Plan Vision

Incorporating vision and direction for your business into your business plan is an important step in identifying your ambition and where you want to be.

Vision helps you:

Keep track of where you want your business to go

State the long-term goals of your business

Reflect the values of your business

Product or service market analysis

The business plan should include a market analysis of the products and services you offer. Must identify, describe and analyze. This part of the business plan includes your target market, market share and competitors. Use this analysis to decide on the pricing of your products and services and the location of your business.

Once you have completed the external analysis, use the SWOT (Strengths, Weaknesses, Opportunities, and Threats) Business Plan Plan analysis to help you identify the biggest opportunities and how you can overcome barriers to achieving results. Reduce your comment.

Marketing Plan – Marketing Plan

The Marketing Plan identifies your marketing strategies for attracting new customers and retaining existing customers. In your in-house marketing plan, consider the difference between your product or service and what is currently available.

Your business plan marketing plan should consider your target market and which marketing channels (digital, print, etc.) are best positioned to reach them.

Legal plan and risk management in business plan

Legal planning and risk management is one of the weaknesses of many amateur and cheap business plans in the market. This section of the business plan contains information about the business structure, business registration and licenses and permits required.

Action plan

An action plan summarizes how your business operates, including information about how your product or service is generated. This includes details of your location and rental conditions, equipment, materials, labor, technology and environmental concerns. An action plan is essential in a business plan.


Human Resource Management Program in Business Plan

The management and personnel program examines staff duties, job descriptions, human resource policies, workforce planning and training in the business plan. Your reputation and that of your employees is crucial to the success of your business.

Financial management program

The business plan financial plan lists the costs of building your business, the sales needed to break, the projected cash flow, financing arrangements, and repayment plans.

The financial plan part of your business plan is important in financing and attracting partners, and it is essential that the plan is accurate and shows their short-term return on investment.

Managing cash flow, understanding your expenses, understanding your taxes and licensing requirements, and understanding your financial forecasts can make the difference between staying in business and closing your doors.

Action Plan in Business Plan

The action plan identifies the tasks you need to perform to achieve your goals, including the resources needed.

When done simply, a business plan consists of three main steps:

  1. Assess the current situation
  2. Identify where you want to be – vision and goals
  3. Action – A plan to achieve your vision and goals.

Make sure you have a clear delivery time frame and appoint key staff to deliver results.

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Do you really need a business plan?

The idea of writing a business plan has been accepted for decades. Everything is moving much faster now and starting a business is easier than ever. And even if you can write an executable business plan in less than an hour, you might ask, is it really worth it?

Therefore, it makes sense to think that startups no longer need business plans. Although tempting to start a business without a plan is not a good idea, here is why:

A business plan is not just about financing

Planning is still an important part of starting a business, but not for reasons you might think. Most people think that this plan is to show it to other people to raise money or get a loan. However, this is not the real reason why planning is so important.

Process is something that is valuable

Writing a business plan is important because of the process you will go through when setting up the plan. As you plan, you will realize what you need to do to start your business and what you need to do to succeed. Writing a business plan is all about you and clarifying your business idea for yourself and your business partners.

The idea is very clear

After all, before you can explain your business idea to friends, family and potential investors, you need to be able to explain your idea to yourself. The value of writing a business plan comes from the process, not the printing of a document.

Reduce your risk with a business plan

Spending a little time planning before starting a business reduces the risk of losing money and making stupid mistakes. Your business plan will help you understand if your business can really make money and what you need to do to succeed. Sure, you can start a business without a business plan, but you’re much more likely to waste time, money, and resources unless you have a plan.

Research proves that it helps

Planning actually ensures that you will be more successful. Over the years, numerous academic studies have been conducted on companies that plan and companies that do not plan. And over and over again, the results show that the companies that plan are more successful, more likely to receive funding, and more likely to achieve their goals.

This is still true even in times of crisis. In a recent survey of small businesses, we found that 58% of businesses that ensure the health of their business have a current business plan. Even in the midst of uncertainty, having a business plan provides guidance and stability, allowing businesses to make decisions, focus on their business, and succeed in an unstable environment.


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