A business plan an outline of your business model. It is the outline of the goals and objectives of your business and how to meet them. To put it more simply, it will be your plan to set up a successful business and keep it running smoothly. But the truth is, 90% of businesses fail in their first 5 years. The best thing that you can do is plan everything right and execute it right. A business plan can be used to raise money, get partners, and get people interested in your idea. That’s why you need a business plan, and the good thing is, I’m about to show you how to do that.
Objectives of a business plan
Define your objectives and vision clearly. You should know exactly what you wish to achieve with your business in a certain time limit. After a while, things start getting blurry. You don’t want that, keep your goals and objectives clear. A good way to start is, to define your vision and write it down in your business plan. It will help your staff to identify your mission, so you can align your daily activities with your vision. What is your long term strategy and how you plan to get there?
Don’t think that these goals or objectives need to be small, think big. Clearly define what your short term goals are, these will include your 3-6-9-12 month goals. Your mid-term goals, those that usually take 2-3 years. And your long term goals. While doing this, you want to consider all aspects like,
Revenue you wish to generate
Number of outlets you want
Number of customers in your database
Age groups along with the amount of passive income that needs to be generated in the future.
Product or service
What is the product or service that you provide? Know your product and dominate your niche. Try to keep it as simple as possible. If you can’t explain your business concept in 30 seconds or less, in a way that a 5th grader could easily understand it and explain to an adult while still making sense, it’s too complicated. If you don’t understand your product well enough, how can you expect others to do so?
Your unique selling proposition
Whatever it is that you’re doing, you’re bound to have some sort of competition. What is it about you that’s different from the crowd.
Know your market. Try to focus on what problem are you solving? How fast the market is growing? Creating a market before creating a product can prove to be beneficial in certain cases. Maybe someone thought of your idea way before you did, but the competition can be overcome.
Understanding your customers
Customers are the most important part of any business. You should know your customers like your friends. Try to make that human connection that makes them come back to you. They have thousands of options for every product. If you want them to buy from you, you need to know what your ideal customer wants. Define your target population and research their habits while writing a business plan. Understanding the motivation behind customer’s actions can make your business successful. Focus on the areas that grab your customer’s attention and interest and stop wasting energy on the rest.
Put yourself in their shoes to know how can you serve them better. Customer service is everything. Figure out what would make them want you every time. Which brings you to another important question,
How Do You Plan To Make Money?
One off sales
What exactly is your money making strategy? Plan your business strategies beforehand.
Implementing your business plan ideas
Implementation of your ideas is really important. Research the demand for your business. There’s a good chance that you would be familiar with the demand and supply curve. But even if you’re not, it’s pretty obvious that your product should be in demand. Find out the demand before investing in a new business. Demand should always be more than supply. If you’re product is in demand, your business have a better chance at thriving. If the demand is less than the supply, your business will eventually die out.
Gather as much information as you possibly can. You can research on the internet from your home or visit government offices for this information. Read from websites like forbes to do in depth market research. The best option is primary research where you interact with your target audience to know their preferences and how ready they are to buy from you. Note down all the interesting ideas you get to increase the demand. Be certain before you invest in a business that there is some demand for your product.
Set your marketing goals. What would be your product’s appearance? How much will it cost? How you plan to distribute it and the ways you can promote it. Most businesses tend to take marketing lightly. You need to set up measurable marketing goals that will help achieve your primary business objectives.
The number of products you will sell
What will be your product development strategy?
What will be your price margins, delivery methods and promotion plans?
They will define the goals for marketing your business. It will help you answer questions like, how much capital you will need? Who is the management team and how to have the ideal one? Define your marketing strategy. To put it more simply, how many products you need to sell and at what profit margin to get your desired revenue? What will be your system of delivery and your coverage area? Be specific, as these will later turn to actions, and will define your ultimate success or failure. Plan for every eventuality while writing a business plan.
The market valuation of your new business idea is simply what people are willing to pay for it. In other words, how much are you willing to give up for your business to have the adequate resources for your business to properly grow. Most entrepreneurs are hesitant to give away their company shares, and often end up losing their businesses. So, you need to be able to take calculated risks.
Any business plan or strategy has scope to give returns if you take action. It is the most important step of any business. Without action, all else is a waste. Knowledge can only get you so far, if you don’t act upon it. It is the driving force you need to achieve what you set out to achieve. You now have an idea of what’s important and how you can tackle the obstacles and plan a better and more effective business plan.
Thank you so much for your visit, we’d love to hear back from you. If you know of any more tips and tricks that have been working for you, be sure to mention them below. Also, tell us about your business plan. Your feedback is always appreciated.