1. Blog
  2. >
  3. Capacity
  4. >
  5. Business Operations
  6. >
  7. What is Business Planning?...

What is Business Planning? The 6-Step Procedure To Create A Business Plan

How to do Business Planning

“A goal without a plan is just a wish.” – Antoine de Saint-Exupéry.

A business plan can be described as the roadmap, a blueprint of your business journey.

Assume, you are planning to drive from New Delhi to Chandigarh, which is a distance of 260 km. How will you start?

The first word which comes to mind is a map. Either a physical, on-paper map or Google Maps/Apple Maps on your car’s navigation system or mobile. What if you don’t have a map to reach Chandigarh from New Delhi? Either you will never reach your destination, or take double, triple time thereby wasting your most precious resource: Time. And here comes the importance and relevance of your business plan.

So, What is B Plan? What is a business plan in entrepreneurship?

What is Business Planning?

A business plan can be described as the roadmap, a blueprint of your business journey. Be it a startup or an already running business, everyone needs this roadmap to reach the goal. It acts as a guide, a map which shows you the direction: Where you are currently, what you wish to achieve, how you will achieve it, and when.

And most importantly, a clearly defined business plan will showcase why you are embarking on this exciting journey?

A business plan is a strategic guide for the entrepreneur, which helps to provide all these answers.

What is Business Level Strategy?

A clearly drafted business plan provides a business-level strategy to any entrepreneur and helps all key stakeholders to be on the same page. Whether you are a one-person company or a hundred people team, everyone needs this clarity.

List of reasons why a business plan is required:

1. 360-Degree View of the Business

Not only the founder and co-founders, but all employees and investors can get a clear picture of the business goals, and the means to achieve them.

2. Priorities are Set

The business plan should clearly show what the priorities of the business are, and what is the order of priority of tasks. This brings more clarity.

3. Manage Profitability

What is a corporate-level strategy? It’s a refined blueprint, an advanced business plan which suggests ways and means, to manage profitability which is the sole purpose of any business.

An important read about – Decoding Profits: How To Find High-Profit Margin Business?

4. Measuring Growth

With the business plan in place, and the entrepreneur being aware of the goals, priorities, and means to achieve those goals, measuring growth becomes seamless. Unless you know what you are about to achieve, how can you measure success?

5. Raising Funds

If you want to raise funds from a bank or NBFC or any VC or Private Equity, they will wish to see your business plan first. Anyone before giving their money to you wants to see if you are going to utilize the funds properly with a plan. The business plan gives confidence to investors that as an Entrepreneur you are ready to grow.

Read more about – 9 Elements of a Business Plan to remember if You Are Looking to Raise Funds

Free Power Kit

How to do Business Planning?

Every business is unique in itself, with unique goals, strengths, weaknesses, and measurement of success. While more units manufactured can be the success metric for a manufacturing company, getting more software clients can be the measure of success for a development company.

But one thing is common for all businesses: Increasing revenues, and boosting profits.

There can be hundreds of templates and blueprints for creating a business plan, depending on the business and its goals.

Read more about – Fast-track your Business Set-Up with Free Business Templates

However, we will share a 6-step procedure to create a business plan, which is easy to do and applicable to all businesses. Use this as a basic template, a foundation for elaborating your business goals and objectives, a stepping stone in your endeavor to understand: What is Business Planning.

So, here we go…

Step 1: What is the Business Opportunity?

In this section, mention the business opportunity which has inspired you to start the business in the first place. Some management gurus describe this step as understanding the pain points of your target audience: What problem are you going to solve with your business? In short, the biggest USP of your business, and its relation vis-a-vis the market demand. Having a clear understanding of your target audience is very crucial for this step.

An important read about – What Is Business Forecasting: Importance Of Business Forecasting

Step 2: How Will You Execute it?

And then comes the ‘How’ part of your business plan. How do you plan to execute your business plan? How will you convert the opportunity into a viable business, and make money out of it? You can describe in detail the business processes, how these processes will be interlinked and solve the problem of your target audience.

Step 3: Summary of Your Management Team

No business in the world can survive and thrive without a team. In this 4th step of creating your business plan, explain everything about your team and the management:

  • Who they are
  • What expertise they bring in
  • How they plan to convert an opportunity into a business
  • Which team member will manage which aspects of the business, and more

Step 4: What is the Finance Plan?

Step 5 is about finance, and one of the most important aspects of creating a business plan. In this section, mention your goals to raise funds, or if self-funded, then how and when you will raise money. It can also include forecasting and predictions about sales, revenues, profits, and expenses. In short, your financial plan should have an overview of everything about money and the future.

Step 5: How Will You Measure Success?

And lastly, the metrics you will use to measure success. Every business and every entrepreneur has different yardsticks to measure success. The metrics are created based on your business goals, financial structure, team, target audience, and sale forecasts. For new businesses and startups, creating 4-5 critical metrics are recommended, which are easy to track and monitor on a monthly or weekly basis. Depending on the success metrics, you can alter your business plan, add new elements, and reduce them.

Read more about – 5 Proven Techniques of Performance Management System for Early-stage Companies

Step 6: Write an Executive Summary

And the last step in creating a Business Plan is a Summary. Write down an executive summary of your business, in one or two pages. A toned-down, bare-bones document that clearly and crisply tells the reader what is your business all about, and what you are going to do about it. If your entire business plan is stripped down to the essentials, then this executive summary should suffice on its own.

Still, have doubts related to business planning and wondering where to start? MSMEx business operations experts are here to help you! MSMEx is a leading startup advisory platform, where business veterans and experts provide live mentoring and coaching to new startups, MSMEs, and established businesses.

We are a team of serial entrepreneurs, corporate professionals and business experts, at MSMEx.in

Succeed Online With Highly Effective Business Tips and Tricks

Do you want to scale your business even further than it is today? You are at the right place.

We provide Premium Online Learning for Small to Mid-Sized Businesses.

We are MSMEx, an experienced MSME edtech company with highly qualified staff to help companies grow in their industry and attract more visitors online. Whether you are struggling to gain a competitive edge online or are working on bringing your business online, we are here to assist you.

Learn powerful tips and tricks, customized especially for your business to suit its specific needs. All you need is to create a website to get started. We will help you and your employees learn everything about the internet and how things work to bring your business to the limelight.

How MSMEx Sessions Benefit Businesses?

The sessions of MSMEx are beneficial for businesses of all kinds and scales. We help them leverage the power of the world of the internet and also solve all their queries and doubts. You get expert help, if you are ever stuck with the scalability of your business.

You may be doing great online, but it's always better to learn more about things better. Learning experiences provided by us are enjoyable and beneficial at the same time. Grow your business and soar high without limits.

MSMEx will help you connect with your audience, understand their pain points, and earn more revenue than ever you have expected.

If something is working for your competitor, it doesn't need to work for you as well. You very well know that every business is different, and so are its needs. Hence, we work closely with our clients to know and understand their processes and custom-make solutions that work out for them.

Why Learn From MSMEx Experts?

The lessons we provide to businesses are curated to match their needs, preferences, and operations. With years of experience in creating industry experts, we take pride in the services offered. Learning is a never-ending process, and with the world of the internet evolving each passing day, there is an ocean full of things you need to learn.

Discover what you can do for your business by spending half of what you are doing now. Several companies have opted for the sessions provided by our experts, and they have unlocked more significant benefits that were beyond their imagination.

We teach several aspects of business operations and how a business can do a lot more than what it is doing today. We will help you craft the roadmap of your business' success.

Why is MSMEx Different?

We conduct live sessions for businesses to understand the course content in depth. We also allow them to connect with the lecturers in case of doubts. The pillars of our company conduct interactive sessions to give valuable insights.

We also have e-books for business leaders to unlock the full potential of the world of the internet.

Learn from a team of serial entrepreneurs, business experts, and corporate professionals who have made efforts in their journey to success. We teach business owners and other aspirants the tricks to be focused on growth to drive their business forward.