8 Steps to Writing Powerful Business Plans

By Dr Marko Saravanja

The following are eight steps and tips for writing powerful business plans.

1. Executive Summary

  • Describe 5 w’s and h – what, who, why, when, where and how much
  • Describe your product or services
  • Summarise key objectives, marketing strategy, financial analysis
  • Describe key success factors
  • Explain differentiation or uniqueness

2. Introduction and Background

  • Introduce key products/services
  • Provide background information on organisation and people

3. Products or Services

  • Describe your current and future organisational products or services
  • Explain what differentiates your products or services from the competitors

4. Market Analysis and Marketing

  • Conduct market analysis, segmentation and describe your market, demographics, age, income, geographical location, race, culture and similar
  • Describe market needs
  • Identify market trends and growth opportunities
  • Analyse main competitors
  • Describe the four Ps of marketing (product, price, people and promotion)
  • Describe your sales strategy and the channels of distribution
  • Describe your promotional material
  • Define your brand and describe branding strategy

5. Strategy and operational plan

  • Describe overall strategy and tactics for a three to five year period
  • Explain value proposition
  • Define key milestones
  • Describe strategic alliances, partnerships and stakeholders
  • Develop operational plan in a table format describing the following: smart objectives, activities, people responsible, timeframes, resources, required budget, indicators of success and monitoring mechanism

6. Financial Plan

  • Describe past, current and future financial performance
  • Explain start-up costs and break-even analysis
  • Forecast profits and losses
  • Describe key financial indicators
  • Provide information on balance sheet
  • Provide a realistic cash-flow projection
  • Define financial controls, accountabilities and name of auditing company
  • Describe clearly what is required of investors or funders

7. Management, Leadership and Governance

  • Provide organisational structure / organogram
  • Describe ownership structure, leadership and management team
  • Provide an overview of HR plan, number of people, types of positions and salary costs
  • Describe principles of sound corporate governance

8. Conclusion

  • Summarise key business plan features, strength, benefits, uniqueness, and profits
  • Write a powerful and inspiring conclusion that touches heart and soul of the reader

© Dr Marko Saravanja, Regenesys Management

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