5 Steps to Create a Successful Business Plan

by commitbizadmin 23, Feb 2021

5 Steps to Create a Successful Business Plan

A company’s B-Plan is a comprehensive reference document designed by the founders of the business outlining the purpose of the business, market objectives, strategic approaches to market penetration, and carefully planned HR structure and financial plan for the company. The B-Plan comes in handy not only in the pilot phase of the company but also long after the company has made its mark in the respective industry as the document reminds the business of its initial roots via the mission and vision statement.

Every business plan must comprise the above information so that it can be referred to in the future by private investors and public shareholders to give them clarity on the goals, objectives, and various activities of the business in the market. With a juggernaut load of tasks that an entrepreneur performs daily, we bring to you a few simple steps that can assist an entrepreneur in his/her journey for business setup in the UAE by designing a Successful Business Plan.

5 Steps to Create a Successful Business Plan

1. About the Company

This section is the introduction to the business plan and, thus, comprises of essential components that give the investors a clear idea about the company's offerings and goals. This section must comprise of the following –

  • Executive Summary – A clear and crisp introduction to the business, unique products or services, and any philosophical content such as inspiration for the name.
  • Vision Statement
  • Mission Statement – The company's goal in the market can either be for social causes, corporate success, and build a lasting name in the market.
  • Company Logo, Watermark, and Official contact details.
  • Problem Statement that the business will solve (If Necessary)

2. Marketing Mix of the Company

The marketing mix of the company includes thorough research of the market demographics giving the business a competitive edge over other players. Understanding the market trends and features is very important for every business to know how to appeal to the customers and increase sales for products or services. A thorough marketing mix includes the following –

  • Market research – Target demographics with age, gender, background, income group, and preferences of potential customers.
  • SWOT Analysis of the business
  • Competitor Analysis
  • Marketing Strategies – Includes strategies and campaigns that the business can use to gain the attention of the consumers such as Conventional approach, Unconventional strategies, Online marketing, Offline marketing, Search Engine Marketing, Brand Ambassador, and Advertising campaigns.
  • Predicted quarter-wise marketing expenditure.

3. Human Resource Plan

The HR Plan of the business explains intricate details of the company’s approach to treating the employees and departmental team members by a further explanation using the following pointers –

  • Recruitment Plan – Number of Employees, Qualification of Candidates, and Various Roles in the company
  • Salary Packages and Incentives
  • Breakdown of HR Expenditure
  • Company leave policy and quarterly timetable of events
  • Grievance Redressal Policies
  • Conflict Management Policies
  • Team Building Activities and Events

4. Financial Planning and Fund Allocation

The most relevant keywords that business professionals associate with start-ups is funding. Funding is the lifeblood of a start-up, and an adequate fund allows the company to offer quality products as well as invest in marketing for gaining consumer attention. In the modern business ecosystem, investors of regional industries often flock towards attractive and feasible business ideas to hedge their investments. These investors are –

  • Angel Investors
  • Venture Capitalists
  • Start-up Boosters
  • Private Incubators
  • In-house Promoters
  • Family Investors
  • General Public (when start-ups go public and issue Initial Public Offerings – IPO)

Once in contact with these investors, aspiring start-ups are exposed to a series of funding plans and options to gain investments. Still, it is the responsibility of the top management to decide the most strategically accurate investment option for the company's future. Top managers need to decide on the proper diligent allocation of these funds out of the various investments that get added to the capital of the company. The allocation format includes the following –

  • Deciding a departmental funding plan so that all departments receive proper resources to operate.
  • Make a list of fixed and variable costs and allocate funds accordingly.
  • Plan on future cost control methods.
  • Create a reserve fund in case of contingency scenarios.
  • Establish exit strategies and return policies to reimburse investors if the venture does not break even during the allotted phase.
  • Keep a strict check on the spending of the company and keep verifying the accounts to ensure that funds are not mismanaged.

5. Decide a Phase-wise Implementation Plan

As an entrepreneur, the ball is in your court to decide the strategic direction of the business. Every business has a pilot phase, which is also called the testing phase, where the company samples its products in the market and uses consumer feedback to improve the products and services. Therefore, as the business grows, it experiences various operational phases such as expansion, depression, revival, etc. To be foresighted and always prepared for market uncertainties and challenges, business owners need to create an implementation plan on their approach to entering, penetrating, and growing in the market.

A phase-wise plan of action gives direction to new business owners about the approach taken towards setting up the business and how to grow the business over time. A basic phase-wise plan needs to consist of 5 years of foresightedness into the company’s future. A phase-wise plan guides the decision-makers of the company towards –

  • Knowing when to invest and divest.
  • Planning helps in deciding when to expand the business or shut down certain operations.
  • Planning gives insight to the company for deciding on brand building and marketing.
  • Planning helps to decide when the company is ready to collaborate or make new partnerships with other firms.

How can Commitbiz Help?

We at Commitbiz comprise a team of specialized industry professionals that have been operating in the business setup sector for more than 15 years. With all the years of experience, we make sure that business owners can set up business in the UAE and various global business locations. We provide a complete array of business setup services ranging from business incorporation, company secretarial services, accounting & bookkeeping services to nominee director services. Contact us to know more about our services.