How to write a business plan yourself: a guide for entrepreneurs

There is no successful business without a quality business plan. We will tell you how to write it using the example of a business plan for a car wash.
Whether you want to launch an innovative technology startup or car wash business, such projects will fail without a business plan.

Without a business plan, you will not clearly understand the goals of the project, the budget and time for its implementation, strengths and weaknesses, risks and payback periods.

Without a business plan, you will not attract an investor, since he will not understand the model and profitability of the project. In large companies, a business plan is needed to launch lines of business in order to understand whether it is worth investing in them.

Specialized companies can draw up a business plan, but it can be expensive. We’ll show you how to do this using an example of a business plan for a car wash.

Step one. Analyzing the market
Here you need to talk about the market where the project will be launched. In this case, it is a car wash on a new residential area. In this area, residential complexes belong to the segment above the “economy”, which means that most of the residents will be car owners. The array has just been built and few car washes have been opened in it.

The analysis of competitors’ work showed the presence of queues. This means that we can conclude about an unsatisfied offer. After studying the area, you should determine the location of the signs indicating the new sink.

First customers should be offered a discount to keep them loyal and increase loyalty. Set the cost of services within the market.

If you know in advance that you will go to the investor with this business plan, then in this section focus on what will definitely convince him to invest in your business.

Clearly define and label your product: how and on what terms you will sell it. Tell us how you are superior to your competitors. Make sure that there is information about your marketing activities. After reviewing this information, the investor must be confident in the success of the project.

Step two. We tell about the production process
Here you need to place information about the equipment, the simultaneous capacity of the car wash, the number of cars that the car wash can wash during the working day. You also need to calculate the number of employees, their working hours, the level of salaries, analyze the costs of rent, utilities, repairs.

After reading this information, the investor should understand that this is a real business, and not just another mirage. A plus will be coverage of the technical nuances of the process to show the investor that you understand and are guided in this matter. The more detailed this information is, the easier it will be for you personally.

Step three. Financial calculations
This is one of the hardest parts of a business plan.

It is often here that interesting ideas burn out after they turn into indicators of future profits.

In fact, the previous step in terms of costs is already the beginning of this section, since knowing the costs and revenues, you can determine your potential profit.

This section is divided into two parts.

On the revenue side, knowing the cost of one wash and the projected flow of customers, you can find out the daily cash flow and schedule it monthly, because cars are washed more often in winter.

Considering that your car wash is located in a residential area, owners will wash most cars on weekends and evenings. Prospective investments must be taken out separately, describing where they will be directed and when they will pay off.

Then comes the expenditure side. It, like profitable, is more convenient to display on a monthly basis. Here it is necessary to note fixed costs (salary, rent, materials, utilities) and one-time costs (purchase of equipment). Putting all these numbers together, you can understand the ROI.

Step four. Potential risks
The business plan must indicate the likely risks and ways to minimize possible losses. This will prevent you from looking frivolous in the eyes of the investor.

For example, the project may be threatened by the massive opening of car washes in the area or an unexpected increase in rent. If you do not agree with the increase in the rental price, then the contract must provide for options for refusal, compensation, relocation and time for this in order to minimize losses.

Step five. Summarizing the business plan
Although this is the last stage of writing a business plan, it should be put at the beginning, since the investor gets acquainted with it first. There you need to briefly describe the business idea: a car wash in a prestigious area where there is a high demand for this service.

Indicate in the resume the amount of investment, projected profitability, payback and return periods, possible profitability, time to start the business.

This is the shortest but most important part of the business plan. Its goal is to draw the investor’s attention to the project and emphasize its prospects. You don’t need a lot of text here, everything should be in essence and without pathos.

Author: wawan20123

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