Writing a business plan for your enterprise is a crucial step should you wish to succeed. By going through the work of creating a business plan you can validate your idea and ensure there is a market for it. Here are some points to consider when creating your business plan:
What is a business plan?
A business plan is a route map for your business idea. It will help you to define it. You will get a clearer understanding of what you want to do. In addition, it will help you to identify potential problems in your business idea and how you can resolve them. In the end, you will have a formal document which you can present to potential investors. And as stated before it will be a guide to help you grow your business. It is important to review your business plan each month.
What goes into a business plan?
When you create a full business plan you need the following information within the document:
- An executive summary: Most entrepreneurs will write this at the end of creating their business plan. In the summary, you will write a brief and concise description of what your business does. Then you will write why you are well-positioned to successfully satisfy your customer’s need. Finally, you will give a brief synopsis of your financial projections. This summary needs to be well-written and thought-out because if it does not grab the attention of your potential investor, they won’t read the rest of your document.
- Opportunity: In this section you will identify what the problem is and how you plan to solve it. You will also highlight the unique selling point of your product or service. In addition, you will show who your target market is and what the size of that market is. Furthermore, you can create a brand persona so that your potential customer can relate to your brand.
- Execution: Here you will identify what is your marketing plan. Which marketing channels will you make use of? How will you sell your product to your customer? Which distribution networks will you use? Will you have a physical shop or an online shop? How will you operate? How will you run your business from day to day? How will you measure the success of your company? What goals or milestones will you have?
- Your team: Who are your team members? It is important to write a short biography of the members of your team. You can also highlight gaps in your team and who you would need to hire. You can also outline the hierarchy of your company.
- Financial plan: Here you will forecast how you will create revenue and what your expenses will be when running your business. You will look at how many sales you will need to make per month to make a profit. You will define what your breakeven point will be. Furthermore, you may want to include your exit strategy in this part of the document.
Who are you writing your business plan for?
It is important to consider who the final audience for your business plan will be. Try to not include too much jargon or acronyms which may not be understood by your target audience. It is also important to keep your plan short and concise. Many investors do not want to read through reams of information.
By following these three points you will be well on your way to forming a great business plan for your start-up.
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