5 Step Planning Process, Creating A New Business Plan : Creating a new business plan involves several stages, some of which overlap. Whether we are writing plan from scratch, using a simple template, or working with a professional business plan writer or consultant, the five steps below will help.
5 Step Planning Process, Creating A New Business Plan
The Business Plan Process Includes Five Steps
- Review and Edit
How To Write A Business Plan In 5 Easy Steps
Research into the industry, customers, competitors, and costs begins. It resources include databases, articles, and direct interviews with other entrepreneurs or potential customers.
The plan requires citing sources, so research should be carefully documented and organised.
The results of your research should then inform your business strategy. Revisit your strategy before your research and focus on marketing, operations, and hiring for the first five years of your company. Generally, strategy draws from industry best practises, but builds on them to create a competitive advantage.
All activities in your strategy incur some cost and (hopefully) generate some revenue. Examine the financial situation to see if revenues will cover costs and leave room for profit.
Insert your financial assumptions and startup costs into a financial model that can generate a first year cash flow statement for you.
After settling on your financials and strategy, it’s time to write the narrative for each section and component of your business plan. With your preparation, drafting should be a breeze.
If you have trouble writing convincing prose, hire a business plan writer to help you finish the plan.
Review And Edit
Examine the entire plan for any ideas or wording that is unclear, redundant, or irrelevant to the plan’s points. Finally, double-check spelling, grammar, and formatting with the help of others.
You may feel burnt out after working on the plan for so long and need to take a break to re-evaluate it.
Environment models (e.g. Porter’s Five Forces, SWOT, Value Chain) are frequently discussed in planning tools. These models create future projections based on historical data.
So they are only useful once enough data has been collected. So planning tools focus on gathering enough data to make valid recommendations. These include:
Industry experts: Whether internal or external, a few individuals with extensive industry experience are valuable planning resources. Hence these industry experts can see beyond PESTEL and Porter’s Five Forces frameworks to predict the industry’s future.
Consultants are frequently used in strategy development and for other purposes. We need to hire different experts to handle different aspects of business, sometimes on temporary basis. One example is Fractional Chief Operating Officer. Therefore Providing an objective lens for internal affairs is the most critical.
It’s difficult to see the whole picture from within, so upper management can benefit from an outside perspective.
Stakeholder inclusion: Upper management will want as much information as possible.
Some examples are consumer satisfaction surveys, supplier cost projections over time, consumer feedback on unmet needs, and shareholder feedback.
Involvement of stakeholders provides a range of tools that may or may not be useful depending on the plan’s context.