A business plan is a list of priorities that defines the what, when, how – and most importantly – the why of your fledgling business idea. Over the years, business plans have evolved. They have gone from an elaborate roadmap of how you will launch, manage and grow your business to a simple one-page document that answers only the key questions that investors may be interested in. However, it is indispensable from the perspective of business loan approval.
How to make a business plan
A business plan should give investors insights into how the various aspects of your business will work together to create value for others. Think about every stakeholder that you will interact with or will be a part of your operation, including vendors, employees, customers, investors and even government authorities.
The business planning process incorporated in your business plan should consider the following stages:
This part of a business plan should offer a sound understanding of why you think your business idea has potential. It should describe your product and its advantages relative to the competition, including a description of the market gap you seek to exploit. You can also include the estimated time to break-even. Outline your ideal customer profile, including demographic factors like income, age and personal interests.
A great business plan should then draw attention to the target market in which you will be operating. It should describe your ideal customer profile, including demographic factors like income, age and personal interests. It should also outline the initial costs of setting up the business such as rent, equipment, supplies and labor.
Getting a trade license from the local municipality and setting up a bank account are included in this phase. If you are an SME, you can avail a loan for business at a preferential rate of interest via the government’s MUDRA scheme.
This stage should describe how you expect sales and marketing activities to shape up, including working capital needs and product development strategy. It should have an overview of your marketing and sales strategy dwelling briefly on budgets, performance milestones and managing payments.
This is the part where you lay out your plans for expansion, including adding new products and services to the company portfolio. Further, you should go on to describe the growth threshold in terms of revenues and market share. This will help you set realistic targets that are aligned with the overall objectives of your business. Throughout the process, make provisions for sufficient funds to meet projected infrastructure and logistics costs, including GST.
This section is best saved for last as it is a synopsis of the overall plan you have in mind for starting and growing your business venture. It should be a brief and concise description of what your company does and why. Seize the opportunity to get an instant business loan from Tata Capital worth up to Rs. 75 lakhs. Whether it is to buy machinery or rent new office premises, Tata Capital’s business loan helps you meet every possible need with confidence.