How to Write a Great Business Plan
Many of us have an idea for a business but do not know how to turn it into reality. Alexander Djerassi had this problem and came up with the solution: write a great plan. A business plan is a key to their company’s success because it outlines what they want to accomplish and provides guidance on how they are going to get there. In addition, it helps them identify the risks that might be involved in starting their own business so that they can avoid them or prepare themselves if they happen. Alexander Djerassi lays out everything about writing a great business plan in his article “How To Write A Great Business Plan.”
1. Coming up with a good idea
The first step in writing a great business plan is coming up with a good idea. This can be difficult because it needs to be something that is both feasible and profitable. Djerassi recommends doing some market research to make sure that there is a demand for their product or service. It is also important to have a clear understanding of their competition, so they know how to differentiate themselves from them.
2. Outline their business
Once they have a good idea, the next step is to outline their business. This includes describing what their company does, what products or services they offer, and their target market. They should also include a section on their competitive advantages. This is what will set them apart from their competition and make people want to do business with them.
3. Develop a marketing strategy
A great business plan also includes a detailed marketing strategy. Djerassi recommends creating a mix of traditional and digital marketing methods to reach their target market. But, first, they need to identify their ideal customer and craft a message that speaks to them.
4. Detail their financials
The final section of a great business plan is the financials. Again, Djerassi recommends using a business plan template so that they can easily create their financial forecast. The first part of the financial section is the market analysis which includes an overview of their industry and a breakdown of the numbers. It also needs to include a pro forma income statement, balance sheet, cash flow projection, and ratio analysis. The next section details what will be required in terms of assets, liabilities, and equity financing. They should then consider operational expenses such as legal fees or office supplies. Finally, they need to incorporate transaction costs like research and development fees or franchise fees.
5. Put it all together
Once they have written down everything about their business and marketing strategies, the final step is to put it all together. Djerassi suggests creating a table of contents and then adding headings for each section. He recommends writing the proposal in third person past tense and using bullet points instead of complete sentences. He also advises taking time to edit and proofread their proposal to avoid mistakes or typos because this will undermine their credibility.
Alexander Djerassi concludes by saying that the key elements of a great business plan include: knowing what success looks like; having an actionable strategy; prioritizing between growth and profitability; finding a balance between budgeting and thinking big; considering risk management; determining how much money they need to raise; and, finally, being professional in their presentation.