A business plan is vital to any form of business that you might want to start. It clearly defines the goals that you set for the business and streamlines the methods for achieving them. Every business needs one and its best to start writing it as early as possible.
Creating a business plan requires careful planning and research to understand industry trends and decide how to place your business in the market. We’ll take a look at how you can create a fool-proof business plan to get your objective kick-started.
A Study of the Market:
Before you plunge into the activity of creating business plan, you need to know the status of the industry. Look at the products or services in the market and identify a gap which you could fill in. Evaluate how much each industry vertical related to your product or service is valued – this will also help you decide on business expenses and revenues.
Define Your Goals:
Once you know the area of the market to capitalise on, carefully plan your product strategy to meet consumer demands and ensure that the demand for your product or service is present in the market. Your audience demographic is one of the first factors to define. Since you will have an idea of the market valuation as well, set up your financial goals along with estimated profit margins so that you gain an understanding of how much resources you will need to fund your operations.
Determine the Type of Business:
A business can be of five types basis your resources and the scope of your operations:
- Sole Proprietorship
- Limited Liability Partnership
- Private Limited Company
- Public Limited Company
The type of company you want to setup will determine the course of legal formalities that you will need to complete.
Identify the Sources of Funding:
Funding is an integral part of setting up your business and will also determine how fast you can potentially scale. Once you have decided the type of business, your products and expected revenues, identify the start-up costs and look for investors to fund your business. Depending on the amount of capital you require, you can consider reaching out to these common sources of investment:
- Venture capital
- Angel investment
- Bank Loans
- The Small Business Administration (SBA)
- Accounts receivable specialists
Plan a Product Pitch:
Looking for investors as well as releasing your product in the market will require providing a value proposition. Monitor your audience and lay out a plan to pitch the need of your product or service in ordinary lifestyle. Your consumers must clearly understand the significance of your products before you can consider driving sales. Without the force of marketing even the best product will find it hard to get off the ground. You will have to allocate a decent amount of time and financial commitment to marketing your products and ideas to the world to grow sales.
Plan Your Resources:
Every business needs resources before it can begin operating. From infrastructure to employees, you need to identify the key resources that you require. The basic ones to keep in mind are:
- Office or working space
- Operational equipment and office furnishings
- Employees, vendors, suppliers, and clients
- Digital services such as software, network connections, etc.
Once you have planned out the basic types of resources that you would need to start your business, scale it down to provide a baseline for your funding and initial operational requirements. Quality always wins over quantity, and it is important to recognise your core resources which will drive your business.
These are just a few tips about what can go into a business plan. Make sure that you spend time on creating one for your business so you know exactly where you are headed and how you will go about it.