Business consultants often hear the question, “Does my startup company need a business plan?” Most begin to nod before the question is finished. The first question is usually followed by several more; “Why is a business plan so important?” “How can anyone be expected to put together a business plan out of thin air?” and, “Aren’t business plans complicated and difficult to complete?” The answers to all these questions can be found in this article, as we discuss crafting each element of your own business plan.
Review Your Business Concept:
Before you begin sketching out your business plan, take some time to analyze your business concept thoroughly. What makes your concept work? Is your idea unique? Will your company offer a product or service that no other company can? Who will buy your product or service? Will you have competitors? These questions aren’t easy to answer; however, the answers are essential to understanding whether or not your business is viable and positioned to succeed. As you complete the business plan, the answers will become very clear.
Consider Your Target Audience:
Answering the question, “Who will buy your product or service,” is critical to determine the probable success of your business. Build a picture in your mind of who your customer might be and determine the demographics of that customer. What is the age range of your customer? Where does your customer live and what are the interests of your customer? All of these questions should be answered, as the combined picture will be a snapshot of your customer.
Assess Your Competitors:
What unique offers do your competitors make for customers? Is your competitor offering anything different from your company? If possible, try to determine the price points for products or services. Taking the time to research your competitors allows for more informed decisions about marketing and this kind of insight gives you a better view of how to best position your company.
Outline Your Mission and Goals:
In a few thoughtful sentences, define exactly why you are starting this company and what you hope to accomplish by building it. Your mission and goals may change over time; however this is the beginning of your efforts and it’s important to be clear about the reasons why you are making this venture come alive.
Set Up Financial Projections:
A business plan must contain financial projections and a consideration of funding the initial startup. Although this sounds difficult, use this comprehensive business plan template to complete each portion of the financial projections and overall startup plan. Your financial projections should include expected income sources, such as sales revenue, and expenses relating to the launch of your startup business, including marketing efforts, equipment and supplies. The financial projections will help in the event that funding is needed for your company. With a clear business plan in place, investors, lenders, banks and other financial institutions can view all the details of your business and easily determine the funding needs.
Create Your Marketing Strategies:
Based on your analysis of your customer and competition that may be a threat, you’ll create a comprehensive marketing plan that will cover all aspects of your efforts. You’ll want to consider the best approach to bring products or services to your customers and differentiate your company from your competitors. Consider using social media callouts, email blast campaigns, and website blogs or Q & A sections to interact with your customers. If your customers are local, use radio or newspaper ads and if your customers are national, use social media, such as Facebook and Instagram, to announce specials on products. Use content creation and search engine optimization (SEO) in your communication efforts, as well.
Customize Your Plan:
Bring your personality and that of your startup company to the business plan by identifying the unique aspects of your ownership. If preferred, use a specific business plan to identify your industry and your unique business application within it. For example, if you are starting a construction business, you might use a construction proposal rather than a standard business plan or, if you are starting a spa, you could choose to use a specific spa business plan, as well.
Prepare an Operations Plan:
Finally, you’ll want to prepare a plan for the organization of your startup business. Even if you are the sole employee and have an office in your home, your startup business needs an organizational plan. This plan will include any computer equipment or software needed, furnishings, product parts or service items, and other office supplies, as well. As your business grows, you’ll want to revisit this plan and revise it accordingly.
Every startup business needs a business plan and, by compiling each of these elements to the plan, you’ve started your business with strength and a future of long-term growth and success.
Congratulations!