Why Your Business Plan Needs to Answer the 5W1H Questions
As a business owner, you may be familiar with putting together a comprehensive business plan. A business plan serves as a roadmap for companies of all sizes, providing a clear vision for where the company is headed and how it plans to get there. However, not all business plans are created equal. For a business plan to be effective, it needs to answer the 5W1H questions, which are what, why, when, where, who, and how. In this blog post, we’ll explore why your business plan needs to answer the 5W1H questions, and how to ensure that your business plan is comprehensive, engaging, and actionable.
The Importance of Answering the 5W1H Questions in Your Business Plan
The 5W1H questions provide a comprehensive framework for answering key questions about your business plan. By answering these questions, you can gain a deeper understanding of your business, your market, your competition, and your customer base. This, in turn, can help you identify key opportunities, as well as potential threats or obstacles to success.
When you develop a business plan that answers the 5W1H questions, you are able to clearly articulate the underlying assumptions and logic behind your business. Other stakeholders, such as investors, partners, or employees, will be able to understand and support your vision. Additionally, answering these questions can help you identify gaps or weaknesses in your plan, allowing you to refine and improve your strategy.
The 5W1H Questions Explained
What
The “what” question refers to the product or service that your business offers. It’s essential to clearly describe what it is your business does, and what sets it apart from competitors.
Why
The “why” question refers to the purpose or mission of your business. What is the underlying reason for your business’s existence? What motivates you to pursue this venture?
When
The “when” question refers to the timeline or milestones for your business. This can include factors such as key deadlines or milestones, or the timeline for product development or market entry.
Where
The “where” question refers to the location or market for your business. Where will your business operate? What is the target market for your products or services?
Who
The “who” question refers to the people or customers that your business serves. Who are your customers? What are their needs or pain points? Who are the key members of your team?
How
The “how” question refers to the strategies or tactics that your business will use to achieve its goals. This can include factors such as marketing or sales strategies, operational plans, or financial projections.
Examples of Business Plans That Answer the 5W1H Questions
To illustrate the concept of answering the 5W1H questions in your business plan, let’s take a look at some examples from established companies.
Netflix
“What” – Netflix offers a streaming service for movies and television shows, as well as original content.
“Why” – Netflix’s mission is to “provide entertainment that enriches our subscribers’ lives.”
“When” – Netflix has achieved several key milestones, such as reaching over 200 million subscribers in 2021.
“Where” – Netflix operates globally, with a focus on expanding into new markets.
“Who” – Netflix serves a diverse customer base, but has a specific focus on millennials and Gen Z viewers.
“How” – Netflix’s strategy involves producing original content in-house, as well as licensing content from other studios.
Uber
“What” – Uber is a ride-sharing platform that connects drivers with passengers.
“Why” – Uber’s mission is to “make transportation as reliable as running water.”
“When” – Uber has achieved several key milestones, such as becoming a publicly traded company in 2019.
“Where” – Uber operates globally, with a focus on urban markets.
“Who” – Uber serves a diverse customer base, including commuters, tourists, and those in need of transportation.
“How” – Uber’s strategy involves leveraging technology to improve the ease and convenience of transportation, as well as expanding into new markets.
Conclusion
As we’ve seen, answering the 5W1H questions is an essential component of any comprehensive business plan. By clearly articulating what your business does, why it exists, when it will achieve key milestones, where it operates, who it serves, and how it will achieve its goals, you can create a roadmap for success that is actionable and engaging. So, as you develop your own business plan, be sure to incorporate the 5W1H questions, and use them to refine and improve your strategy.
