Get the basics of your plan right
Okay, so you have decided to start a business. You’ve chosen something you want to do and it looks like it’s going to fly. What next? Well, it’s time you thought about developing a business plan.
These things are either ridiculously hard to write or very easy. It all depends on how you approach them, to be honest. Treat your business plan like the exciting, useful document that it’s meant to be, in other words, and you should be fine.
The basic business plan is very simple. But just jumping in and writing one without thinking about it is pretty nuts. Best thing you can do is jot down some ideas first of all. Take a piece of paper and write down the details about your company, the products and/or services you are going to offer, and some basic information about the customers you are going to target. Then make a quick note about the finances, what you expect to make over the next few years. If this fills a side of paper that’s pretty good. It gets you thinking, and it will provide the framework for your plan.
Once you have this framework for your business plan structure, describe your company in detail. Do this on a separate piece of paper and go for broke. Imagine you are writing this description for a top banker who has a sack of cash that he wants to give you. But he will only do it if he thinks your company is worth investing in. Go into detail about your amazing company. Tell a story. Make it obvious that your company has a reason for existing. Two out of three businesses fail so yours has to be pretty special. Then write about other staff you have, if this is relevant, highlighting their stellar credentials.
Once you have described your company, go into detail about your product or service. It’s amazing, right? Exactly. This is your baby, so describe how you’re going to make it happen. Think of that captive, powerful audience again and describe what you are going to sell. Cover the costs of production. If you have suppliers, make sure you explain who they are.
Then it’s time to describe the market you are going to compete in. If your plan is to bring in investors, they want to know about the arena you are going to dominate. You should know the industry very well because you’ve been researching it, so convey the details about the market you are going to be playing in. Talk about the industry trends, the typical customer, and the niche you are going to make your own. Basically, if you can get across a strong understanding of the market and the customer you are targeting, you’ll be fine.
Once you have the market explained, you have to show how you are going to reach it. So discuss the marketing plan you have. How are you going to reach this market? What advertising are you going to do? Will it cost? If so, how much? Keep this aspect, which is called a marketing plan, as realistic as possible. Outline all costs as regards your marketing and publicity.
Then it’s time for the executive summary. This is a synopsis of the business plan. A couple of pages explaining what the reader will encounter when they read the plan. This part of the business plan sells it.
Once all of this stuff is down on paper, you will want to start giving it some shape. Go here for a basic template and get the boxes ticked. Once you have the basic business plan, share it with friends and family. If they can understand how you are going to make money with your business, the plan works.
The basic business plan is simple to write
Comments on this entry are closed.