How to write a business plan for a business that is already existing
The business plan is not just for newly established companies. A business could be required to establish a business plan due to business acquisitions, franchise purchases, and the launch of new products. Existing businesses utilize the business plan to track their spending, specify their goals, and evaluate their development. In contrast to new business beginnings, creating a business plan for an established organization is frequently easier because operational data is more easily accessible.
There are several advantages to having a business strategy for an existing company. It boosts investor confidence in your firm, draws in new partners or staff, and makes your organization appear more appealing to potential buyers if you’re selling your business. Above all, a business plan helps you navigate success and growth at various stages of your company.
Making a business plan in black and white allows you to consider each step necessary to accomplish your business objectives. You can identify any deficiencies and potential difficulties you might encounter in the future. Additionally, it lets you spot untapped possibilities and take advantage of them.
Usually, a business plan will have the sections listed below:
- Executive Summary;
- Company Description;
- Mission and Objectives
- Products and services offered,
- Market trends and demand,
- Marketing and sales strategy,
- Operational plan,
- Management and organization,
- Financial statement,
- Financial analysis,
- Financial plan,
As was already noted, certain circumstances, such as business acquisition, creating new products, or purchasing a franchise, may require an existing business to produce a business plan. Established companies typically use a business plan to describe their strategies, keep track of costs, and assess their success. Due to the ready availability of operational data, writing a business plan for an established business is simpler than writing a new one.
Why an existing business should make an effort towards having a business plan
There are many reasons why a current business owner should think about creating a plan for their company. We will examine a few of these factors, though. The following examples are the ones that need our attention in this case:
- Direct your growth: Many aspects, such as steadfast effort, current economic trends, market demands, and the location of your organization, affect how successful a business is. Having a business plan directs and influences your development and enables you to go forward with clear business objectives.
- Manage your priorities: A business plan enables you to devote resources where they are most needed by helping you concentrate on the order of your priorities. You can use your strengths by completing the tasks most crucial to accomplishing your business goals first. You can simultaneously work to address your inadequacies in the interim.
- Assign responsibilities: Organizational responsibilities are defined and assigned based on a business strategy to accomplish the stated goals.
- Track business development: A business plan provides the standard by which to gauge your aims’ advancement. Without a strategy, it can be challenging to track whether you are managing the company properly or developing at the appropriate rate.
- Plan for Cash: Cash is the lifeblood of any business; therefore, budget for it. However, despite being very concerned with making a profit, many firms do not plan their cash management adequately. Poor cash flow management can hamper your operations and harm your standing with creditors, vendors, and suppliers. A cash management strategy is outlined in a business plan, paving the path for efficient business operations.
How to write a business plan for your existing business or company
- For the cover of your business plan, create a page. Include your company name, complete address, and other relevant contact details, such as a fax number and email address.
- Give your company a general business description. Give the company’s mission in no more than 30 words. Include your company’s philosophy, ambitions, and goals here as well. Give a succinct overview of your company’s sector and include data on its growth trends and projections.
- Include your company’s legal business structure (sole proprietorship, corporation) after this information and elaborate on the company’s history, including the duration of the business, sales and profit history, and notable achievements and failures. Include any changes your company made to address any issues or failures.
- Define the goods and services your company offers. Give a thorough explanation of the products and draw attention to their competitive advantages and drawbacks. Describe any plans or actions your company has taken to address your goods’ weaknesses.
- Complete a primary and secondary examination of your sector, its trends, target market, needs, and competitors. Using resources like census data and demographic profiles to finish your secondary investigation. To finish your primary analysis, consult your company’s facts and analysis.
- Complete your business’ marketing strategy using the findings and information from your study. Give specifics, including sources and statistics, to support your conclusions and tactics. Determine and describe the characteristics of your target market. Describe the qualities and advantages of your items and why your target market will find these attributes appealing.
- List the main rivals of your company, along with their offerings and locations. Contrast the advantages and disadvantages of your company with those of your rivals. Describe the advantages and disadvantages of your company’s competitive position and the tactics it will employ to stay ahead of the pack.
- Describe the advertising strategies your company will employ to reach its target audience. Describe your company’s tactics to retain clients and get referral business. Include the pricing ranges and costs that these strategies will incur.
- Describe the functioning of your company. Include details about the hardware and location of your company. Include details on each expense’s associated costs, such as utility bills, equipment warranties, and mortgage or lease payments. Describe the legal requirements for your company, such as licenses, zoning compliances, and environmental rules. Describe how your company completes its operations, upholds quality, controls inventories, develops products, and provides customer service.
- Your staff should be identified. List the duties and obligations of your senior and executive staff. Describe your company’s workforce in detail, including the number of people in each department. To have a quick visual reference, create an organizational chart. Indicate each employee’s pay scales and specific training schedules and demands. Include information on any vacant roles’ wage ranges as well as any vacant vacancies.
- Give details about your company’s finances. A list of your company’s accounting procedures (cash or accrual). If your company uses the accrual system, describe the credit terms, charges, and collection procedures used by your company.
- Make personal financial statements for each business owner. Give a cash flow statement, income statement, and balance sheet for your company. Prepare a 12-month profit and loss sales estimate for your company by examining its profits and losses. Provide a five-year estimate if your business wants to include long-term goals and expectations.
- Give your company plan an executive summary. Make sure the summary doesn’t exceed two pages. In summary, emphasize your company’s objective, unique products, and target market.
- Make an appendix and a table of contents for the plan. Create the table of contents with a direct link to the pages where each section starts. Add supporting documents to the appendix, such as receipts, tax returns, and accounts payable schedules. Each supplementary document should be properly labelled, and the files should be arranged in the order in which they are cited.
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