Company incorporation in Singapore is relatively easy compared to other Asian countries, especially if you have a corporate service provider to assist you in the processes. However, that doesn’t take away the fact that you need a solid business plan to keep your venture afloat for many years to come.
Why do companies need a business plan?
A business plan provides direction for your business. It reflects the direction you want to take, your next moves, and possibly, your tactics for attracting investors to invest in your venture. It lists down your plans right from business registration down to identifying potential threats that could affect your business and ways to prevent some issues from happening.
Unfortunately, not all businesses have their plans on paper. Some business owners avoid making plans altogether, thinking perhaps that a business plan is a rather taxing thing to do. Why spend time writing things down when you can just wing it?
What’s the best format for business plan?
Unless you have a pretty good memory of the path you want to take in business, you need a plan that you can constantly refer to in every stage of your venture. It doesn’t have to be a lengthy document that will make other people’s eyes glaze over the moment they start reading it.
Quite the opposite, a business plan can be a rather short one that contains all the essentials information about your venture. Not a fan of writing? Perhaps a visual business plan will work for you. Think info-graphics, PowerPoint slide decks, or mind maps.
What should be included in a business plan?
The contents of a business plan may differ depending on the kind of industry you are in. However, it should reflect the essential information about your business, and this includes:
- Executive Summary – this is an overview of your business. It includes your mission, company information, growth highpoints, and future plans.
- Company Description – this is an account of what you do as a business, how it is different from others, and the markets that your business taps into
- Market Analysis – this illustrates your knowledge about your own industry, your target market and its size, competitive analysis, market share, and gross margin targets
- Organization or Management – this refers to the ownership of your company, its board members, and their responsibilities
- Service or Product – this is the part where you talk about the benefits of your product or service in the eyes of your customers, how it will meet their needs, and its advantages over the competition
- Marketing and Sales – this is where you define your marketing and sales strategy
- Funding – this talks about in detail about your funding requirement if you need one, how you plan to use the funds that you will receive, and any strategic financial plans for the future
- Financial Projections – this includes your company’s historical data (if you have been in business for a while and your prospective financial data
- Appendix – this is an optional part of a business plan, but you can use this part to include your resume, company registration number, and other permits
How to write a business plan?
As with any other aspects of running an enterprise, writing a business plan requires owners to make plenty of research. An intimate knowledge about your company, your market, and your competition will make it easier for you to come up with a solid plan.
While most business plans serve as road maps, yours could be used to attract investors, so it’s important to know from the very start what purpose your business plan will serve. Additionally, it should be able to document all aspects of your business, and have a rock-hard marketing plan in mind. All these things can help you make a smooth transition from company incorporation to scaling up your venture in the future.