How to develop a successful project business plan?
In this article, we will talk about the components of a business plan, and this article will serve as a complete guide to creating a business plan from the ground up.
1- Executive summary
When starting to write a business consulting plan, the first thing we start with is the executive summary; This summary is what will convince the reader to go through the rest of your business plan.
The executive summary contains:
1- A feasible basic project idea
2- Good project planning
3- The ability to successfully manage the project
4- The existence of a sufficient market for the project
5- Features of this project
6- Financial forecasts
Always consider this summary’s reader and make it a priority when writing. Therefore, the language used in the abstract should be reviewed by an expert or given an evaluation by a friend of yours.
The abstract is usually two to three pages long, and the reader only needs 5 minutes to read it.
It is always advisable to write the executive summary after the entire plan, as it will include all the essential information in the plan.
2- Description of the company or project
First, there should be an official name for your company.
Second, the legal form of the enterprise: is your company a sole proprietorship or a joint venture? In such cases, it is best to consult a lawyer or a legal expert to explain the advantages and disadvantages of each.
Third, the size of the capital: The capital must be written and calculated accurately. We will discuss this element in more detail in an upcoming article on the feasibility study.
Fourth: The date and place of company registration.
Fifth: The date of incorporation of the company.
Sixth: The objectives and mission of the company.
Seventh: The products and services provided by the company.
Eighth: The names and members of the administrative team
Ninth: The company’s website
Tenth: The financial position of the company in a nutshell
3- Analysis of the sector and its trends
In this component, we will discuss the sector’s analysis and trends. For any project that is part of a sector, Your knowledge of all aspects of this sector will increase the chances of the success of your project. A sector is a group of companies that provide similar services and products and includes companies related to this service (such as the supplier and distributor).
Your action plan should include:
1- Describe the sector in which you work.
2- Current and future trends
3- Existing strategic opportunities
So what do you need to know about the sector?
1- Determining the size of the sector, previous growth rates, and current and expected growth rates in the future.
2- Determine the size of the risk or the sector’s sensitivity to the economy in general.
3- The life cycle of the sector.
4- Study seasonality in this sector (the volume of demand in the sector at different times).
5- Studying technological development and its impact.
6- Studying the papers, licenses, and certificates required to work in this sector.
7- Sales and distribution channels.
8- Analysis of financial patterns.
4- Determine the target market
The importance of identifying the market is to know your customers; What are their desires and ambitions? And what are their needs? What are their behaviors?
If the type of your company deals with distributed companies, here you have to identify two types of consumers (the final consumer and the intermediate consumer).
Target market characteristics:
Defined by customer characteristics.
The market size must be sufficient for the project to be profitable.
The product or service is within reach of customers in terms of price and marketing.
Criteria for selecting the target market
- Demographic description of the market: The customer’s age, income, gender, occupation, marital status, and educational level.
- Geographical description of the market: Define the geographical areas where your product will be sold.
- The standard of living of prospective clients.
- Psychological description.
- Purchasing patterns and the buying decision process.
- Purchasing sensitivity: focus on quality or price.
- Market size and trends
1- Evaluate the competition correctly
2- Learn from your competitors
3- Look at the target market and know your competitors.
4- Look at the global competition
5- Studying the market share
6- Analyze the future competition
To summarize what was mentioned in the practical steps, you must first describe the competition fairly and accurately. Secondly, predict your market share.
6- The strategic position of the project
The options in the market have become multiple, so understanding the strategic position of your project improves your performance in the market and your productivity.
Determining a strategic position helps you know that:
- Strengths of your project
- Sector trends and developments
- Market opportunities and changes
- Competition Opportunities and Changes
- Technology opportunities and changes
Strategic positioning is important for modern projects to differentiate themselves from competitors; Thus, how the resources will be distributed.
Here are several ways to help you differentiate your project:
1- Customers’ impressions
2- Focus on a specific market segment
3- Know your market share
4- Operational and technological benefits
6- Sales Channels
7- Business model
7- Risk assessment
All projects have risks, and all are subject to failure, so it is important to consider the risks and potential for project failure.
Knowing the risks helps the person face them, so what are the most important risks facing projects?
1- Market risk relates to the market response to your products and services.
2- Competition risks: the competition situation has changed from the expected form, such as the entry of new competitors into the market.
3- Technological risks: a clear technological change and its impact on your products.
4- Product risks: related to your product, whether in timing, delivery, or features.
5- Implementation risks: The company’s management can implement the project in the right way
6- Financial risk: The financial risk is related to the adequacy of the funds raised for the project’s success.
7- Global risks: These relate to projects that operate at the global level.
8- SWOT Analysis
This analysis relates to the opportunities available to the project, which usually exist in the project’s external environment.
Risks: This point represents the risks to which this project is exposed.
Strengths: These focus on knowing the strengths of your product or project.
Weaknesses: Project weaknesses and internal factors.
Processes are how a project is managed and explain the day-to-day work of project team members.
What are the basic processes that help the success of the project?
1- Project Location: The location has a major role in the success or failure of the project.
2- Production process: thinking about the raw materials and the labor required to do this work.
3- Production capacity: dealing with sector and market growth.
4- Inventory management: Maintaining manufactured materials and raw materials.
5- Suppliers and distributors: Don’t rely on one supplier. Keep multiple choices.
6- Purchase requisitions: Clarify how purchases are completed. How do you receive purchase requisitions? How is the purchase carried out? And finally, after-sales services.
7- Research and development
8- Financial management and control
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10- Marketing plan
As you know that the customer is the most important factor for the success of any project; Therefore, having a marketing plan through which you can attract clients to your project is essential. So build a good business plan.
The marketing plan outlines the following elements:
1- The way you introduce your customers to your products and services
2- The marketing message you want to deliver to your customers.
3- How the marketing message will be delivered
4- How is the sale process?
Some simple tools will help you build a marketing plan, such as the following:
- The company’s marketing message
- 4 Ps of Marketing: Product, Price, Place, Advertising.
- Product Benefits
- What the customer wants
- Marketing strategy
- Marketing method
11- Selling Strategy
The selling strategy consists of two themes:
1- Who are the sellers?
They are the people who will sell the product, i.e., the sales team.
2- What is the selling method?
Indicates the process by which the sale will take place (sales through exhibitions, telephone, online, or direct visits).
12- Administration and Administrative Structure
The work team has a major role in the success and continuity of the project, So don’t be in a hurry when choosing your staff and follow the business plan.
Employees give their all when working in an encouraging work environment. Teamwork is an important competitive advantage, So invest time in choosing them.
The administrative structure consists of:
1- Key employees: They are often the founders of the project and the top management (such as the CEO, the general manager, the production manager, the technology manager, etc..).
2- Salaries and wages.
3- Board members.
4- Advisory Committee.
5- Advisers and specialists.
Management style elements:
1- clear policies
2- How to communicate and communicate
3- The method of estimating employees
4- The ability of employees to change
13- Social responsibility and continuity
CSR benefits the company, the enterprise, and the community; Among the benefits of the company’s social role:
1- Awareness of the company’s existence by the community at a lower cost.
2- A positive view of society.
3- Social responsibility is considered a recruitment tool for employees interested in their communities.
4- It also helps build strong work teams with common interests and values in serving the community.
5- Incorporating new experiences for the company. 6- Building strategic partnerships and expanding the company’s work.
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