How to write a business plan, and why do we need it?

This document outlines the project’s goals, objectives, and purposes, including a plan for daily operations and main functions, such as marketing, finance, and expansion.

Why is a business plan important?

Entrepreneurs need to prepare a well-defined business plan because of the numerous benefits it offers. A thorough business plan includes the following elements:

Defining business steps and objectives

A business plan is a comprehensive outline of all essential details related to the project’s nature, such as services or products, project location, and more. The plan offers clear insight into the steps and resources business owners need to launch their projects.

Proper business planning helps set realistic goals and define clear timelines for achieving them. It also facilitates the development of key standards and performance indicators essential for meeting these goals, ultimately contributing to long-term profitability.

Assisting in making critical decisions

The primary significance of a business plan lies in its ability to help business owners successfully navigate crises and make informed decisions. It acts as a blueprint for operations, outlining expected strategies to follow and potential risks.

Attracting investors

Investors seek assurance that their funds are placed in the right ventures. A comprehensive and clear business plan offers investors extensive insight into the company’s objectives, structure, and strategies, instilling confidence and encouraging investment.

Allocating business resources

A good business plan helps organise and allocate the company’s resources efficiently, ensuring they are optimally utilised. It provides a proactive outline for several procedures, such as opening new offices, hiring new employees, and making changes in production and marketing. Additionally, it assists in estimating expenses and financial impact.

Achieving work goals: How to prepare a professional business plan

Preparing a professional business plan requires addressing several fundamental aspects to define its features clearly. According to the Ministry of Economy in the United Arab Emirates, the following aspects are essential:

Writing the executive summary

The executive summary is a concise description and overview of the company’s products or services. It includes a description of the target audience, business approach, sales and marketing strategies, management team, competitors, financial plan, and implementation steps.

Writing the project description

This section of the business plan describes the project’s nature, primary purpose, and key message. It also details the objectives, core values, and distinguishing features that offer a competitive advantage. Moreover, it should cover the organisational structure, number of employees, and other relevant details.

Analysing the market

Market analysis involves researching the market size and its current and future trends and analysing and evaluating them. This step helps understand how market dynamics influence the project’s operations and how it can effectively meet market demands and needs.

Analysing the competitors

The competitive analysis is a crucial step in preparing a business plan. It involves assessing market competitors’ performance, strengths, and weaknesses, and identifying strategies to outperform them.

Developing the implementation plan

This step includes a thorough, precise description of the project’s operations and implementation methods to achieve its objectives. It also outlines the organisational structure, the leadership team details, and the timeframe for the project to start generating revenue and profits.

Creating the sales and marketing plan

This plan focuses on marketing strategies—both traditional and digital—for the company's products and services. It comprises pricing strategies and methods to attract the target audience, including marketing content, budget, and the timeframe for achieving the desired results.

Preparing the financial plan

The financial plan involves estimating the financial requirements for running the project, including liquidity, budgeting, and expenses. It also encompasses the financial goals based on market research, anticipated sales rates and profits, and any necessary investment amounts.