HomeBUSINESSHow to Write a Good Business Plan in Kenya

How to Write a Good Business Plan in Kenya [2022]

A Good Business Plan is important in the success of any business. It would be best to have a company plan to convince investors to invest in your firm idea. In other words, a Business Program is a laid-out procedure of how the company is to be run.

After coming up with a firm idea and collecting all the necessary information, you will have to put the opinions down on paper in a business plan. Writing a business strategy is usually the first step when setting up a business.
Although some entrepreneurs have achieved without having one, many have also failed because they did not have a company plan. But, how do you write anice business strategy?
This article has summarized the features of a good business plan and what the business plan should contain. In addition, it has components of how you should put content in a business plan. Thus, you should read through it.

Qualities of a good business plan

A good business plan should have the subsequent qualities:

It should be short

The goal of every business plan is to be read. No one will read and examine more than five hundred pages of a business program. Many investors do not have moment to read through many stories in a company plan. Therefore, you should be clear and brief in your business plan.

Also, a business plan is a mechanism that will require modification as time goes by. Having a voluminous business program modifies a difficult task, and you might end up working against your business plan.

It should be nice to the audience.

When writing a business strategy, use a language that your audience can understand. For cases where a possible investor is not an expert in your area of interest, use straightforward language instead of technical terminologies.
Accommodating your investors and maintaining your product descriptions short and precise growths the chances of receiving the funds you require.

It should not make you feel intimidated

Many entrepreneurs and investors retain as they grow in business. Most successful business individuals don’t even have a degree in business-related courses. Thus, writing your business plan should not make you feel intimidated.
As long as you are devoted about your business idea, writing a program on how you plan to grow should not be a task too hard to handle.
It would be most useful to write a simple one-page business strategy (A lean plan). Once you have a lean program, you can then come back and expand it later on.
Now that you have understood the features of a profitable business plan, it is time to look at what a company plan should have as content. Content is a critical factor resolving whether your plan will be approved or denigrated. The following are factors that you should include in your business plan scope.

Things to include in your business plan

Executive summary

This paragraph gives an overview of your business plan. It should take between one to two messengers and should be the first part of your business project. However, some individuals write it as last, but the summary should give the reader what to expect.

Opportunity

In this part, you give details of the product you want to deal in and the need of clients that you seek to solve. This section explores the competition in the market you want to tackle into and the target market for your product.

Execution

This is the third piece of your Business plan. Here, you must demonstrate how you will use the opportunity.
In this section, you are considered to give details of your sales and marketing plan, operations, and the standards to measure success.

Team or company

Most investors not solely look for good ideas but also good groups. In this section, you are needed to give details of your team. Talk regarding the team you already have and those you ought to employ.
You will also be needed to provide your legal structure and location. In addition, if your business is already up and running, a history of prior businesses.

Financial plan

No business plan is finished without a financial plan. A financial plan provides details about how money is operated in the business. In this chapter, you are considered to provide details on sales, profit and loss accounts, personnel plans, cash flow statements, Balance sheets, and an exit plan.
In a business plan, this part is one that many entrepreneurs find contesting to handle, but investors will look keenly. In addition, investors will pay much attention to the financial strategy because they need to know how you will expend their money and return it in the end.
A typical business program usually has a monthly projection for the first 12 months and a yearly projection for at least the next five years. Although a Three-year prediction is enough, some investors will require a full five-year forecast.
The following is a summary of details you should include in the Financial objective of your business plan.

Sales forecast

A sales projection is simply the projection of sales to be created over the next few years. Typically, a sales projection is broken down into various rows, with each row having a detailed core product or service being offered.
A sales projection should also have corresponding rows indicating the Cost Of Goods Sold. (COGS). The COGS is precisely the amount used to provide goods sold and not additional costs such as rent and transport.

Personnel plan

Your personnel plan includes details of money spent on workers. All posts can be listed for the small business with the charge paid to each employee stated against the assignments. The Personnel plan is sub-divided into small sections for massive businesses such as sales and marketing.
The personnel plan also possesses details of additional costs of employees other than wages. These costs involves insurance, payroll taxes, and other connected expenses. Such costs are basically typically referred to as “employee responsibility.”

Profit and Loss statements

Your business numeral will come in at the Profit and Loss accounts segment. This is where you will decide whether a business will be making losses or profits.
The earnings and loss statement utilizes all the data from the sales forecast, personnel plan, and additional costs interested in running the business.
In simple words, the Profit and Loss statement will deduct the total companies’ expenditure from revenues to determine the Net profit.

Cash flow statement

Cash flow statements are largely mistaken with profit and loss statements. Nevertheless, the cash flow statement plays an altogether different role in company. Cash flow statements are used to indicate the amount of money obtainable in a business at a given instant.
In profit and failure statements, expenditure is deducted from gains. Cash flow statements start with cash at hand, then the addition of incomes followed by removal of money used to pay for expenses such as bills.
Cash flow information help predict instances when the company might run low on money.

Balance sheet

This is the important thing that investors need to see in a business plan. A balance sheet provides a clear illustration of the financial health f a business.
A balance sheet contains a checklist of assets and liabilities of the company. It also contains the investor’s equity. You can determine the net worth by subtracting liabilities from assets using the balance sheet.

Use of funds

If you intend to use your business programas source funding from investors, you must indicate what the funds will be used for. This unit does not need to have detailed report. Just offer investors significant areas in which funds is going t be spent.
Exit strategy
The last thing you might require to include in the Financial plan of your business plan is the exit plan. This is after you determine to sell your business to another business or IPO.
Investors need rescues for their investment. And the only to get this is if the business is sold to another party. Therefore, the investors will want to know your views on the exit from the market.

Appendix

The appendix is usually the last piece of a business plan. Here, further product illustrations, including drawings and images, can be inserted.
In most circumstances, the appendix is thought a must-have chapter in your business, but this is where you will provide any details that you might have skipped in the plan.
Now you know what to have in your business and how your business plan should look like. This will allow you to write your idea down on paper and look for funds to achieve your goal. However, it would help if you noted that running a company is not very easy. It will need time, money, and dedication before any business is fully functional.

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