Simple business plan examples
The pros and cons of every business should be well written in a business plan. Entrepreneurs get to know their action plan mentioned in the business plan.
A good business plan is the backbone of any business. No business can sprout well without a good business plan.
Every step, goal, direction, timeline, and process is well defined in a business plan. The future of any business depends on a strategic business plan.
A business plan is very important, especially, for the new businessmen, as it describes how to start, run and manage a new business.
A well-written business plan is very useful for loan applications. The required steps to write a perfect business plan for your company or service is as follows:
Step 1- Executive summary
An executive summary is a short description of simple business plan examples that shows a glimpse of your business. It is an overview for the readers that gives an overall impression at a glance and curiosity to go deeper.
An executive summary is crucial for writing a simple business plan based on related examples & a free template.
It should give ease to read out by saving their time. Be clear, concise, and simple so that readers get a persuasion to read the whole of simple business plan examples.
An executive summary is a crucial part of a business plan because it gives your partners, stakeholders, investors, venture capitalists, or the banker an interest to read.
How to write an Executive summary
- Personalize yourself from the reader’s point of view
- Customize your executive summary as per the purpose
- Shape it up with a continuous development process
- Size matters most, keep it as short as you can, never to exceed more than 2 pages
- Write positively with strong language for a good first impression
- Keep in mind, that it is a summary of your entire business plan, a short version of the plan
- Make a double check by a person who has no prior idea of your business, as a reviewer
- Keep it updating continuously
Executive summary Outline
A well-written executive summary of a business plan has many benefits. It is essential for operating your own business. A well-written business plan is very useful for loan applications. An executive summary includes the following:
- Mission statement/ Pitch
- Company information
- Business highlight
- Problem statement
- Business opportunity
- How you relate your business to this opportunity
- Competitive advantage
- Market analysis
- Target market
- Revenue model
- Marketing strategy
- Sales strategy
- Return of investment
- Strategy to get market share
- Financial analysis
- Human resources management
- Backup plan
- Implementation plan
- Future plan
The best way to write a successful executive summary is to pick up one to two striking sentences from every part of your whole business plan and, rephrase them a bit Interestingly.
Step 2 – Define your vision
The first and foremost step of a business plan is to define your business vision. A vision is a long-term future goal that you want to achieve in the long run. a vision gives your new business a practical focus that projects 5 to 10 years in the future.
It is an inevitable part of a business plan which is very useful for a loan application to the bank or to any venture capitalist from simple business plan examples.
Setting a clear vision to resist you to misguide yourself in the wrong direction. Business values and goals should be aligned with your business vision.
A clear vision reflects a big dream, focuses on the future, and achieves a goal successfully. It is inevitable for writing a simple business plan based on related examples & a free template.
Your vision should cover your mission statement with inspiring aspirations. The achievable goal should relate to your passion with forward-thinking and time frame. Your business vision will motivate you and tell your stakeholders the same sort of imaginary reality.
15 companies’ Vision
- Nike Inc.’s vision is “to remain the most authentic, connected, and distinctive brand.”
- American Express wants the company to be “the world’s most respected service brand.”
- McGraw-Hill’s vision includes “economic growth and job creation” and “creating a smarter, better world.”
- The Hilton hotel’s vision statement mentions, “to fill the earth with the light and warmth of hospitality.”
- Reebok says “we all have the potential to do great things” and “to help consumers, athletes and artists, partners and employees fulfill their true potential and reach heights they may have thought un-reachable.”
- McDonald’s vision statement is “To be the best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value so that we make every customer in every restaurant smile.”
- Amazon’s vision says “to be earth’s most customer-centric company; to build a place where people can come to find and discover anything they might want to buy online”
- Disney’s vision statement is “to make people happy”
- Facebook’s vision says, “to give people the power to share and make the world more open and connected.”
- Ford’s vision statement is “People working together as a lean, global enterprise to make people’s lives better through automotive and mobility leadership”
- Google: “to organize the world’s information and make it universally accessible and useful.”
- Microsoft’s vision statement is to “Empower people through great software anytime, anyplace, and on any device.”
- Sony’s vision statement refers, “To be a company that inspires and fulfills your curiosity.”
- Zappos describes its vision as, “delivering happiness to customers, employees, and vendors.”
- Apple’s vision statement is, “to produce high-quality, low cost, easy to use products that incorporate high technology for the individual.”
What makes an effective Vision?
- Future focus
Step 3 – Set your goals and objectives for the business
Why do you start your business? What is the objective of your entrepreneurship? These are important to know about your success, of the simple business plan examples.
So, you need to get answers to them. Put them down on the business plan. Setting goals, as well as objectives, are crucial for writing a simple business plan based on related examples & a free template.
Business growth is associated with a business goal. It helps to achieve the business objective. The goal is a quantitative direction for teamwork and accompaniment. Achieving a goal is a critical achievement for the strategies.
Hints of business objectives are:
- Increase productivity
- Gain a competitive advantage
- Boost up the profit margin
- Enhance skills and efficiency
- Ensure cybersecurity
- Achieve greater market share
- Better customer service
- Employee development
- Product innovation
- Sustainable development
- Less turnover
- More productions
- Door to door sale
- Decrease products price
- Provide value addition
- Create a performance-driven culture
- Balance expense
Tips for setting business goals
- Conduct a SWOT
- Assess competitive advantage
- Run a market analysis
- Consider previous performances
- Evaluate employee opinions
- Assign a role to the team
- Ensure support to role players
- Relate goal to your mission and vision statements
- Be specific and understandable
- Set realistic goals
- Breakdown your goals into parts
- The goal should be measurable
- Communicate team
- Relate goals to avoid contradiction
- Check resources needed
- Set timelines
- Reviews progress
- Monitor and support
- Avoid distractions
Step 4 – Define your Unique Selling Proposition
Why should customers buy from you? What makes you different from others? How do you feel better than your competitors? What is your unique selling proposition in your business? It will clearly distinguish you from other entrepreneurs. Be very clear about your unique selling proposition.
A unique selling proposition in business, USP means the selling point that makes your clients impelled to buy your products, or motivates customers to change the brand.
A unique selling proposition standardizes your products better than all other competitions. It is important for writing a simple business plan based on related examples & a free template.
USP is an open offer to customers with specific features that makes the products special to them. Clients are so spurred that they not only buy it but also refer to others from simple business plan examples.
Mentioning this unique feature in your business plan will make it attractive to your working team to achieve. It is important for a business plan that is very useful for loan applications for writing a simple business plan.
The best way to set USP is not to compete in a crowded target. When you will be unique in your service, you can easily find a great unique selling proposition, that no other competitors can afford.
What stuffs makes a great Unique selling proposition
- Easy to understand
- Differentiates brand identity
- Create positive feelings about the brand
- Describes a key benefit
- Traditionally short, narrow
- Value addition
7 Steps to set a unique selling proposition:
- Set your target audience, select your niche
- Find the problem you are going to solve (you are not going to sell your product)
- Describe the process of how your product works
- Clarify the most valuable benefits and features you are going to offer (those others can’t)
- Make your statement emotional and appealing
- Emphasize your story
- Narrow down your statements
Famous slogans that describe their Unique selling propositions:
- Domino’s Pizza: You get fresh, hot pizza delivered to your door in 30 minutes or less or it’s free.
- McDonald’s: “I’m Lovin’ It”
- Tesco: “Every Little Helps”
- Geico: 15 minutes could save you 15% on car insurance
- De Beers: A diamond is forever.
- FedEx Corporation: When it absolutely, positively has to be there overnight.
- L’Oréal Paris: “Because You’re Worth It.”
- Avis: We’re number two. We try harder.
- Toms shoes: ”One for one”
- MasterCard: “There are some things money can’t buy. For everything else, there’s MasterCard.”
- Nike: “There Is No Finish Line”
- Apple: “Think Different.”
- BMW: “Designed for Driving Pleasure.”
- Dunkin’ Donuts: “America Runs on Dunkin'”
- M&M: “Melts in Your Mouth, Not in Your Hands”
Step 5 – Know your market
Market analysis is a prerequisite issue to initiating a business. It enables a businessman to have valuable deeper insights into transitions in the economy, society, competitors, product demand, ongoing market trends, fashion, demographics, etc. It also gives realistic data on customers’ expenditure abilities, intentions, and needs to purchase.
Know your market well before going for a business. The business field is gigantic, and one businessman cannot cover up all of them. Even it’s not possible. Clients need many things.
Knowing the market is relevant for writing a simple business plan based on related examples & a free template. It is really challenging to please them always. Therefore, it is crucial for finding out potential customers, and avoid risk factors to take precise business decisions.
Market research categories
- Data sampling
- Secondary research
- Questionnaire survey
- Focus groups
- One to one interview
- Phone survey
- Assumption and observation
- Field demo
Market analysis questions
- Who is your customer?
- Where is your target market?
- What are their problems?
- How can you solve their problems?
- Are there any other competitors with similar products?
- What is the market demand for your products?
- How many product units do your customers need in a span of time?
- How many units you can produce to meet their demand?
- What are the projected requirements for unit products in the market in the next 2, 4, 5, and 10 years?
- How many units you will be able to supply in the next 2, 4, 5, and 10 years?
- What type of product innovation is predicted in the market in the next 5, or 10 years?
- How will you handle the challenges in product innovation in the market in the next 5, or 10 years?
Putting these questions with appropriate answers in the business plan is very useful for loan applications.
Market analysis tips
- Determine target customers
- Browse Internet sources for background study
- Be involved, rather than relying on secondary data on the websites
- See-through customer’s point of view
- Gather real-time data as much as you can
- Summarize your detailed analysis in short
- Run serious market analysis
- Focus past history and present trend
- Include a graphical and visual representation
- Forecast the future with your intuition
- Find out the relationship of the market with your business
Step 6 – Know your customer
For whom have you started your business? Obviously, it’s for your customers. Your customers are your blessings, the key role players for your success. Loyal and happy customers can multiply your success with their emotional involvement.
Decide whom are you going to deal with all through your venture. Know them very well. You will have to handle each and every customer’s choice, taste, hobbies, likes, dislikes, passion, need, and problems with care and attention. Knowing customers is required for writing a simple business plan based on related examples & a free template.
Know your customers very well- their interest, ability, motivation, psychology, instincts, and emotional triggers. You cannot force your customers to buy. Need to know their motivational factors so that they are impelled to buy emotionally, and bring more leads, continuously. A properly written business plan is very useful for loan applications.
The customer is always right. You cannot change your customers. Focus on what you need to change yourself to make your customers buy. Write all these in your business plan. Understand your customers. Go for permanent relationship building through compassion, positive word of mouth, trust, and responsible solutions maker.
What a customer seeks from you
- Options and alternatives
- Problem solve
Type of customers
All customers are not the same, or not even similar. They can be of different kinds. You cannot treat all of them equally. One trick or approach can be perfect for one, but, be sure, might be very offensive to others. Customers can be of-
Handle everyone differently. Analyze their need based on your experience, knowledge, and intuition. A well-prepared business plan is very handy for loan applications and a sample of a simple business proposal.
Need to know their additional needs. Give them the right product, solutions, and services to meet their need. Be their trusted solution maker, not a businessman.
Step 7 – Research the demand for your business
What is the present demand for your business? How do people accept it? What could be the profit margin? How many companies are there with similar products? What is the anticipated future? Is this business sustainable over the next 10, or 15 years?
There should have a reflection of a thorough research outcome on your venture in the business plan. Research is inevitable for writing a simple business plan based on associated examples & a free template.
Research on demand allows you to understand the trend of your business. You can’t reverse after starting operations.
Therefore, a well-defined analysis and projected product line should be good. If the demand is high, but the competition is low, you should start thinking about it right now.
Research should be on real-time information. Be careful, in case the products are going to the declining stages, despite current demand in the market.
In this case, the best product should be one that is not on the market yet. Do holistic research on your blue ocean ideas.
It will be a good one if your innovative idea clicks. The risk is lower in case you have a new product with comparatively higher demand in the market.
You cannot blindly jump into a business on vague assumptions only. Your valuable research on demand is your valuable fuel to ignite your business.
Step 8- Competitors
Your competitors are not your enemies. In fact, competitors are your silent mentors. You can learn many things from your competitors and include them in your business plan.
Studying competitors is relevant for writing a simple business plan based on related examples & free templates.
Do holistic research on them and enlist them in your business plan for your decision making:
- Expansion strategy
- Quality of management
- Investment policy
- Corporate form
- Human resources
- Rate of change
- Personnel policy
- Speed of innovation
- Corporate culture
- Quality assurance
- Brand values
- Products range
- Product lines
- Degree of innovation
- Delivery range
- Reaction rate
- Capacity utilization
- Communication channel
- Brand value
- Public relations
- Pricing strategy
- Organizational structure
- Sales channels
- Sales materials
- Pricing of sales
- Image quality and customers
- Kind of customers services
- Decisions making authorities
- Contact persons
- Reaction time
- Delivery capacity
- Delivery quality
- Speed of delivery
- Intellectual property (IP)
- Trade license
- Customers’ privacy
Step 9 – Financial analysis
It is a very crucial part of your business. Every successful business focuses on this part since its inception and has simple business plan examples.
Without finance, any commercial business has no meaning at all. Your business plan should rightly address this issue for your future success.
Financial analysis is, in fact, the process that assesses how far a business is financially suitable and feasible.
It deals with financial entities like business plans, financial statements, projects, and budgets that come across a business operation.
Your financial analysis has to cover every possible financial information that your business has now, as well as, financial data that is estimated for future growth, and a projection of your day-to-day operating expenses.
A proper financial analysis is handy for writing a simple business plan based on related examples & a free template, and simple business plan examples.
A financial plan should have the following objectives:
- Assess your existing financial situation
- Plan your financial goals
Plot your backup courses of action
- Assessing alternative plan
- Generating and enacting your financial action plan
- Reviewing and revising the plan if needed
A financial plan covers
- Cash flow statement, day to day incoming and outgoing cash flow
- The income statement is also called the profit and loss statements
- Balance sheet and the cash flow statement
- Forecasting sales
- Tax management and planning
How to generate a financial analysis
- Begin with sales forecasting, which will be able to describe your weekly or monthly sales goal
- Create a simple spreadsheet that will visualize sales for two years and next
- Make your expenses budget for the next 1 fiscal year, to be renewed yearly
- Create a smooth cash-flow statement to be very useful for your day to day revenue
- Show your Income projections with a proper breakdown
- Clarify your assets and liabilities properly, these things will be a pivotal factor to run your business in the long run
- Calculate your Break-Even analysis, a very vital part of forecasting the sustainability of any business
- Generate comparative financial statements
- Prepare a statement of changes in working capital
A financial analysis should maintain the following steps:
- Research on economic characteristics of your Industry
- Set your organizational strategies
- Evaluate the quality of organizational financial statements
- Analyze profitability
- Calculate budget
- Assess risk factors
- Develop projected financial statements
- Analyze trend
- Analyze the ratio
A financial analysis should have the following components:
- Debt management
- Retirement planning
- Estate planning
- Monitoring progress
It is important never to make the financial plan complicated, ambiguous, or laborious. A short and precise business plan carries value for loan applications. A practical and actionable will actually be useful to you.
Step 10 – Define your marketing strategy
Your marketing strategies are your strengths. The products you will develop require huge attention and strategies to deliver to your target market, and a sample of simple business proposals.
To set the action plan of your marketing strategy, you need to get clear answers to the following, in your business plan:
Your objective for the business
Decide about your ideal customers
What is your competitive advantage? How and why you are the best?
How much cost will be best for you and your customers?
A story that your customers will believe about the value you create
What is the way to reach people to get your products into their hands easily?
Where is the place you tell your story
What will be your approach to telling your story
How do you strengthen your relationship with your prospective customers
What is your idea for attracting customers in number?
The story you give your customers to tell their network
Strategy to multiply transaction value
How you please customers by positioning
How do you make sure your customers come back and be permanent customers?
These steps of a business plan is very useful for loan application.
Step 11 – Operations manual
An operation manual is a handbook of a business that describes the written directions, policies, instructions, information, procedures, a simple business plan examples, and processes that are required to operate a business. It is important stuff for a business as it works as an operational guideline of a business.
A well-written operations manual implies a smooth operation of a business, apparently. In most companies, the operations manual is an open secret resource separately put for action.
Planning an operational manual is relevant for writing a simple business plan based on related examples & a free template.
However, a clear indication in short about this handbook should be reflected with key features in the business plan.
Contents of an operations manual
(An outline of the objective of the manual as well as the targeted users for who it is produced)
(An outline of the questions answering on “where”, “what” and “how” about the organization)
- Aims, Goals & Objectives
- Services and delivery process
4. Specialized Service, Policies, and Procedures
- Emergency procedure
5. Board of Directors, or Management
6. Human Resources Management
- Recruitment and Selection
- Appointments/ Contracts
- Health and Safety
- Grievance Procedures
- Employee Benefits
- Disputes and Dismissals
- Job Descriptions
- Job Reporting
- Financial Planning
- The Budget Cycle
- All other Manuals
Apparently, an operation manual may not be actively valuable, but it is well-designed protection to resist disasters caused by human resources, from simple business plan examples.
It could be different from company to company based on its purposes. Finally, the operations e should be user-friendly for the greater purpose of its usefulness and utility.
Step 12 – Sales strategies
You have your products. Fortunately, you have developed your marketing plan. You know your market. This is the time to make sure your sales strategies make a win-win deal with your clients. Mention the process and strategies for sales, in your business plan.
In fact, successful business operations depend on success in sales. To make the sales smooth and optimum, you have to weave your appropriate sales strategies.
The core objective of a vigorous sales strategy is to make a smooth sale up to the last customer, as well as to enhance profit gradually and certainly. Sales strategies are relevant for writing a simple business plan based on related examples & a free template.
- Include a free trial period
- Automated email campaigns
- Target existing customers for continuous sales
- Know what is needed of your customers, and generate urgency
- Capitalize on the problem-agitate-solution (PAS) method to shape your prospects
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Step 13 – Human resources management
Managing human resources is challenging. The success of every business operation largely depends on the maximum use of its human force. A good manager can handle each and every human resource carefully. Human resources management and HRM is a great art for the entrepreneur.
Before maintaining human resources, the best idea is to hire the best human products for the organization. Skill, effective, and efficient human resources are blessings for the organization. Upon motivation and care, your human resources can bring success in the shortest possible time.
Put down a glimpse of your HRM in the business plan.
Mission of HRM
Human resources management establishes the following mission in the organization
- Employee performances
- Low turnover
- Revenue generation
A human resources management system deals with the following dimensions in an organization:
- HR management
- Orientation management
- Job placement
- Shift management
- Goal management
- Strategic management
- Recruitment management
- Selection management
- Appraisal and review
- Succession and career planning
- Payroll management
- Leave management
- Training, coaching & development
- Performance & Reward Management
- Insurance management
- Policies & forms of publishing
- Job engagement
- Personnel administration
- Organizational change management
- Organizational survey management
- Career & Talent management
- Employee suggestions management
- Absence management
- Newsletter, opinions, polls & events
- Employee self-services
- HR planning
- Competence management
- Attendance management
- Labor relation
- Health, safety, and security
Employee improvement process
- Attract the best manpower for the organization
- Educate selected candidates for performance optimization
- Train the selected employee for growing responsibilities
- Motivate by positive reinforcement
- Empower the deserving candidates in strategic decisions
- Reward the best-fit employees for their further growth, which is correlated with organizational growth.
- Retain the good employees with reward, the meaningfulness of the job, and motivation
- Improve low-performing/ disengaged employees with counseling, training, and coaching, or eliminate them if not developed up to the mark.
Personal attributes of an HR professional
A professional HR should have the following traits:
- Having soft skill
- Decisive thinker
- Technology friendly
- Skilled influencer
- Updated and knowledgeable
- Personally credible
- Rational and logical
- Challenge takers
- A role model for others
- Emotionally intelligent
- Having strong personal skills
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Step 14 – Supply chain management
SCM, the supply chain management, is the smooth and successful process of management to reach the finished product or service to the end level consumers, from the place of origin to the place of consumption.
A well-defined supply chain management is relevant for writing a simple business plan based on related examples & a free template. It is necessary to mention your SCM in your business plan.
SCM is the flow of goods, raw materials, and services from the source via transport to the destination to the store or showroom. The goods, etc, then reach the hands of customers and gain a competitive advantage.
SCM process flowchart
- Factory/ source
- Package/ label
- Received in good condition
- Warehouse management
- Integration to shops
- Quality assurance
- Deliver to retail entrepreneur
- Stock in showroom
- Customers experience
Supply chain transformation in Samsung
- Listen to the voice of customers
- Adopt the six sigma methodology
- Use the advanced planning and scheduling system
- Develop cross functioning team
- Streamline performance evaluation system
- Standardize process and parts
- Establish a risk management system
Supply chain lessons from Steve Jobs
- Customers come first, and cost-cutting comes second
- Aim impossible target
- Prioritize initiatives based on the importance
- Adopt process monitoring of the company
- Simplify products and processes
- Undergo holistic change when required
- Increase relationships through face to face meeting
Supply chain lessons from Amazon
- Place yourself in your customer’s shoes
- Don’t be redirected by the competition
- Focus on the goal
- Travel extra mileage
- Implant seeds and observe them sprout and grow up
- Offer improvisation
- Develop a great team
Best service supply chain
- Customers services should be the top priority
- Don’t repeat any job
- Pickup the right people put them in the right place and empower them
- It is more than technology
- Promise lesser, deliver more and more
- Segment your target market
- Do your suppliers need your help?
- We prepare for change
- Grow a partnership with third-party logistics vendors
- Give the best performer the best exploring opportunities
- Envision every contact as an opportunity
- Undergo win-win negotiation with partners
- Satisfaction first, productivity second
- Make harmony in your database for all operations
Step 15 – Revenue model
The revenue model is a crucial thing for any business venture. It is also called the business model. A well-thought revenue model is important for the sustainability of any business.
Setting up a business model is not that much easy. By this, you can implement your strategies for your venture. It is directly related to your financial objectives. The revenue model is a must for writing a simple business plan based on related examples & a free template.
The most effective way to create your most effective revenue model is to “forecast”. You can estimate your cost and revenue to calculate your projected revenue.
There are two common approaches to forecasting your revenue and generating your business model. These are:
- Top-down forecasting
- Bottom-up forecasting
By top-down forecasting, you can grossly bring the entire market size into your consideration, then assume your niche to get your specific target segment. From this, you can predict how much you can penetrate.
By bottom top forecasting, you reverse your calculations from bottom to top, from the marginal level headcount to replicate the process upto the top level of the market, grossly.
Steps to consider
- Pickup the dominating variables of your venture that play a crucial impact on your revenue
- Find out your risk factors, understand them, and address them particularly. By this approach, you will be able to mitigate your risk variables, that has a great impact on the revenue.
- Forecast the near future, instead of looking into a long-term future.
- The bottom line, break-even points, major milestones, etc. have a greater impact on the revenue model.
- No one can run a business, based on a single revenue model, and keep some alternative revenue plans. Also, be flexible to adopt different business models at different times for different reasons.
- Pick up a revenue model that is in line with your company values, development, and culture