Any kind of business – small, medium, or enterprise – is built with a strong foundation pivotal to the beginnings of its operation.
This will not only make you and your business smart, but banking and loan firms actually require entrepreneurs to provide a business plan before they get involved. And this initial exercise is just as applicable with franchised businesses.
A business plan is the backbone of your business. It’s your go-to reference when you’re lost in the sea of ideas for the continuity of your business’ success. Entrepreneur says business plans are the written description of your business’ future.
Every business must have a blueprint of its strategies and tactics — a certain advantage you can benefit from when conflict arises. It’s where resolutions are stored, reminders about the scope of your business and ultimately, its goals and objectives.
What is your vision for your business – what does it seek to address?
The business you decide on is probably due to the fact that you saw an opportunity in the market that can possibly address problems in the industry. Provide a background and explain your vision. How does your business or franchise address the problem in the market? Why is your vision the right thing for right now?
Startups are always popping up, and there’s a chance that the concept you came up with has already been executed by somebody else. So herein lies the question, what makes you think you can provide the service better?
What products and services will you offer?
What are you going to offer customers? Outline what you want to sell, and what makes your product unique. Is this innovative? Let people know what’s exciting or different about your product – this factor can help convince investors that your business can take off and be successful.
Who are your customers, and who are your competitors?
If your target customers are too broad, you will find it difficult to fully define your marketing strategy. Entrepreneur lists age, sex, education, graphic location, working status, and marital status as some factors that can affect your target market margin. Who do you think will be interested in what you have to offer? Take note that your product isn’t sellable to everybody. The market is constantly evolving, so it’s important that you know your customers even if you’re not updated on the latest trends.
There will be competitors out there. Business News Daily suggests that you make sure that you have some sort of advantage over them. Outline your competitors – this will allow people to get a deeper look into your target industry. Identify your competitors and their strengths and weaknesses.
Knowing these things can give you an edge. There’s no point offering something that’s no different from everybody else’s in the market. Simply put, knowing your competitors will allow you to take a peek at what’s already established to work, and what aspects need improvement. It might be a good idea to build from the underdeveloped aspects of the industry.
A business plan is the backbone of your business. It’s your go-to reference when you’re lost in the sea of ideas for the continuity of your business’ success.
What is your sales and marketing plan?
Discuss the current state of your target market, and your strategy on how to reach them. For example, people walking by your physical store will immediately get an idea of what kind of brand you’re pushing for. Another way to reach your target customers is online. Instagram shops abound the internet. One advantage is that you have no need to pour funds into a physical store that can otherwise we spent on campaign strategies for your business. It also makes you more accessible. Websites allow people to extensively view the products you have and the kind of branding you offer.
What is your financial plan?
Identify your revenue streams like pricing, margins and expenses. Do you know where your business stands? What do you need to move forward?
Discuss the capital requirements for this, and if you need outside funding, where will you get them and how will you use it? Some businesses, despite their unique concepts, are not always profitable. If you need outside funding, determine how you can make up for this while covering the monthly finance for the first few years. It’s important to note the financial projections and market forecasts before pouring your time and money into something that might be obsolete in a few years.
Your business plan should be different from your business dream. Your plan has to be realistic and attainable. It will serve as a stepping stone for you to reach your business dream.
Your business plan mustn’t be stagnant. It has to adjust to the state of your business, especially because the course of your business will not solely depend on your written plan. You call the shots because you are the boss.