A Comprehensive Guide to Preparing a Successful Business Plan

In 1903, American Henry Ford established the Ford Motor Company when owning a private automobile was reserved for the affluent class and seemed like a pipe dream to the average person. Ford wanted to make vehicles that were affordable for the majority of people.

He created a systematic plan of action to accomplish this, which led to an inventive production system that, in his time, was regarded as a renaissance. Ford workers could produce more cars in a short period, and he kept getting closer to his objective each day.

Today, Ford - the man who taught Americans how to drive - is credited with revolutionizing public and private transportation, and his posthumous net worth reached nearly $200 billion.

Preparing a business strategy is a prerequisite for the success of a business because it clarifies the project objectives, the reasons why it is achievable, and the deliberate plans and strategies used in the completion process.

An effective business plan should include a clear executive summary and carefully considered documents to clarify the business’s strengths and mission.

Preparing an effective business plan requires some creativity. When preparing business plans, companies' goals vary. They may plan to obtain a specific investment, support loan applications, or others. In other words, these plans must achieve the stated targets.

Six ways to create a successful business plan

1. Having a concise and clear executive summary

When developing an effective business plan, you should prepare a concise and clear executive summary covering only the core axes. You should mention all the prime axes on the first pages and cover the proposed value topic determining the company's field of specialization, the mechanism of earning revenues, and how to attract customers who pay for the services or products provided.

If the plan's objective is to obtain the best investment, you should specify the necessary sum and describe how to use it.

2. Identify market opportunities

After preparing a clear executive summary, it is necessary to ask the following two questions:

• What is the size of your target market?
• What is the growth rate?

A thorough plan should be developed to address each of the business's opportunities and risks while determining the proposed value of the enterprise. Chambers of commerce, trade associations, statistical data, and businesspeople are good sources of market information. To be prepared to back up your claims or update the business plan, properly document your information with the relevant sources and references.

3. Assessing competition in the market

It is natural for the entrepreneur to be convinced of the excellence of their services or products in the market, but the reality is different. Instead, it is necessary to be objective and evaluate the competition in the market by discussing the following questions: Who are the competitors in the market? And what services or products do they offer? And how much is their market share? And why would the client choose the products or services you offer? What are the barriers to entering the market?

The answers to these questions illustrate the intensity of the competition you can face in the market in the coming years, as well as identify the strengths of your products compared to competitors so that you are ready when the competition is intense.

4. Addressing the question of implementation

It is imperative to address implementation after the idea and direction have been identified, especially topics related to the qualifications of team members; that is, identifying their strengths and weaknesses and how they deal with the implementation process.

After Henry Ford addressed the implementation process, he focused on motivating workers by reducing the number of working hours and even doubling wages when necessary. That method achieves a high degree of clarity and confidence in the executive role, and it becomes easy to address defects if they exist at the level of implementation.

5. Revenue projections

There are two main questions to be answered in this regard:

• How much revenue will the business generate?
• When does revenue start?

Data showing past financial performance should be attached if the company is in existence, adding financial projections, expected profits and losses within 3-5 years, cash flow statements, and balance sheets, in addition to the initial cost analysis showing the amount of returns required to cover the initial investments.

For startups that do not have large amounts in banks, cash flow data is very necessary, in this case, to compare the amounts due with quarterly payments.

6. Make the plan realistic and actionable

Business plans are often inflated, and assumptions are made based on the availability of market demand for services provided in high quality and at exorbitant prices; that is why a plan that is as logical and actionable as possible should be prepared to avoid losses.

“Preparing an unrealistic and unworkable business plan imposes additional obstacles on the company because you will spend the entire life of the company trying to achieve the wrong goal,” says American entrepreneur Nicholas Dutko, founder of the car shipping and leasing company Auto Transport Quotes Services.

A realistic action strategy facilitates tracking results, comparing them with the plan, and adjusting them accordingly. It is critical to include deadlines, dates, quantitative measures, and expectations, with emphasis on imposing the obligation on employees and the ability to track, review, and correct the stages of the plan when necessary by authorized persons.

In conclusion

When trying to attract busy professional investors who can only glance at the many ideas piled on their desks, creating a meaningful business plan requires significant research, time, and money.

Preparing a successful business plan requires understanding these factors and adhering to ethical values. Most of these ideas are fundamental but often overlooked or distorted, and utilizing them to their full potential is impossible. Be sure to include the stages of the process and its requirements when preparing your next plan.