A powerful business plan can be the leading denominator to the success of a business. A business plan maps out a company’s mission, its goals, and the basic framework of how the business operates. If laid out correctly, a strong business plan can attract interest to investors. Developing a plan can be challenging. Here are a few helpful points you will want to consider implementing when creating a business plan for your company.
Know your business.
First and foremost, you should be able to answer what issue your company is solving and how they are solving it. Spend the time to research your product or service, the competition, the industry, and your target audience. Understanding these key points, along with why your business stands out from the crowd will ultimately help you in creating a company profile. Your company profile explains these answers along with a summary of the history and mission of the business and will help lay the groundwork for the rest of your business plan.
Know your projected expenses.
If you are crafting a business plan for investors, make sure you have every expense documented. Investors will invest if they believe in your business and if it will make them money. Your financial plan should overlap into your business plan, highlighting cash flow, growth rate, and future projections.
Know your marketing plan.
How will you advertise your product or service and keep loyal customers? A good business plan will include marketing solutions to carry your business to success. Investors will want to know what new products and services will be offered down the line, how you will expand territory, how you will boost sales through promotions, and ultimately any long-term partnerships you may be able to acquire.
Know where to find the right tools.
Fortunately, there are several services available to aid in crafting a business plan. The SBA provides a ton of online tools to help new business owners create a business plan. View examples of plans, and read through helpful tips for forming your own plan. LivePlan is a business plan software that will take you step-by-step through the process. It allows you to manage forecasts and to track your progress.
Whether you are creating a plan for partners, investors, or customers, a well-executed business plan will be one of the most important tools for convincing people to join you. It can provide organization and direction for you and your company and can play a critical role in the overall success of the business. Once you have a business plan created, always make sure to have it reviewed by an experienced colleague.