10 Steps to Build a Sustainable Business Plan

Demands come at you quickly, whether you’re an established business owner or just thinking about starting a new business. Determining how to build a successful business plan can seem time-consuming and intimidating between all the to-do lists and meetings.

However, 70% of business owners recommend creating a business plan before you start your business because if done right, business plans can offer various benefits. This article will share a step-by-step process of building a sustainable business plan. But first of all, let us have a look at:

What is a Business Plan?

It is a comprehensive road map for the growth and development of your small business. It defines who you are, what you plan to do, and how you want to accomplish it. It helps you draw the attention of the talent and investors. To thrive in the competitive Handmade Jewelry Market, a Sustainable Business Plan that prioritizes ethical sourcing and eco-friendly materials is key.

Why do You Need a Business Plan?

You may be wondering why you require a plan in the first place. As many times you might have a clear idea in your mind regarding what you want to accomplish. You might also have an idea about the market and necessary skills. So it is natural to question why the business plan is vital.

Here are the reasons:

It helps you to clarify your ideas. Putting down your thoughts provides structure and substance and gives it more clarity.
The ideas you thought might have some issues or loopholes. They might not have covered everything. A plan will help in discovering and solving these problems.
You can get feedback if you have put down your ideas. They can help modify where needed.
It can help you with banks, investors, accountants, and lawyers to show your seriousness about your business.
It can guide you as your business grows. A well-defined plan will keep you on track and focused when the day-to-day work becomes a distraction. In this situation, a plan will let you know where you went wrong and what can be your next step.

Ten steps to Creating a Successful Business Plan

1. The Executive Summary

The first step is to define your organization and the products and services you offer. You can describe it in brief to catch the attention of people. Mention your business goal and mission in a few sentences. It should be memorable.

2. Decide Your Targeted Customers

Companies need to have a basic idea of the type of people that will purchase their products and services. If you have not figured it out yet, you must think about it carefully. A sustainable business plan might incorporate offering “Personal Loan for Career Development” options to empower employees and cultivate a future-oriented workforce. It is the most common question investor can ask you about your business plan. Therefore, you should think about the answers. Other points to consider are:

Decide whether your customers are consumers(B2C) or businesses(B2B). And if they are businesses, then whom should you target, which companies, etc.
You would like to have regular clients or one-off buyers.
Ensure that you have interacted with your potential customers.

3. Evaluate the potential audience

You can not make any guesses here. You need to find the people or businesses who will purchase from you. You can decide it based on:

Demographics – age, gender, social status, etc.
Location – A specific area, town, or country.
Firmographics- size, revenue, products, and services of the company.
Profession- people of which profession can be your audience like accountants, police, etc.
Groups- people with shared interests or habits.

The better you evaluate your target customers, the better your business plan.

4. Find Your Opportunities

You have to think about the possible future opportunities in this step. Try to think big, you might be starting small, but it is not necessary to stay this way. For instance, if you are thinking about starting an online business, you must consider various aspects. These aspects include how you can get the traffic, how people will find you, how to convince people to buy from you, etc. Outsourcing in business can contribute to a sustainable plan by allowing companies to partner with providers who specialize in eco-friendly practices. When your business expands in the future, you have to think about whether your products will stay relevant or what other opportunities you will have.

5. Know Your Competition

Every business has its competitors. Companies should mention their competition or, else, it will look unprofessional in front of the investors. Be specific, and put down all your current and potential competitors. You can mention:

The direct competitors – they sell the same products as you.
The indirect competitors – they are part of a similar market as yours.
Aspects preventing other businesses from competing with you and their barriers to entry.
Mention your USP (Unique Selling Point). It can be any feature or point of difference that makes you stand out from your com[etitors. It is the most crucial thing that you should mention. It can be based upon price, service, quality, range, value, etc.

6. Develop a Convenient Financial Plan

Businesses should mention some financial information in their business plan. It should include the total costs of setting up your business, such as:

Cost of manufacturing or buying products.
Labor, manufacture, and raw materials.
Employee costs, especially in a service business.
Marketing and distribution.
Fixed and variable overheads, etc.

A suitable accounting system can help you develop a draft financial model.

7. Marketing Plan

You need to think about and discuss the five Ps of marketing here:

Price – the price of the end product.
Positioning – product or service fitting into the market.
Promotion – channels you can use to attract and communicate with your customers.
Profit – expectation in earning from your product or profit per item sold.
Place – Your sales outlets.

8. Design Your Operations

You can mention in your business plan the daily tasks that need to get done while running the organization. Here, include every business process from manufacturing to packing. Cover every department, including sales and customer service.

9. Hire the Right People

It is one of the crucial factors. First, decide who and what kind of talent you want to recruit. Next, think about how you can find competent skills and convince them to work for your organization. You will also need people you can trust to guide and mentor you when necessary. So, determine who you want as your business advisor.

10. Simplicity is the Key

Keep your business plan simple. The complex and lengthy strategy could be time-consuming and frustrating to go through every time. Therefore, it should be brief, relevant, and focused. If you find yourself being carried away while deciding the plan, go back and modify where needed to make it simple.

While building your business plan, keep in mind your strengths and areas that need improvement. It can help you create a plan that makes the most of your abilities. With the help of these ten steps, you can start working on a business plan for your organization that will assist you in reaching your goals and objectives. However, your role does not end here. You need to review this plan at least once a year to make the necessary changes.

Author Bio:

Deepali Daiya is a communication expert who excels in understanding customer needs. She writes powerful sales scripts and articles with very high conversion rates. Currently, she is associated with Sage Software Solutions, a leading distributor of high-quality ERP and CRM systems to small and mid-sized businesses in India.