If you are planning to start your small business, then you need to know how to create a business plan. According to a study, planning can help a business grow up to 30% faster and improve the overall performance of a business.
It is integral to write a business plan because this will serve as your roadmap or blueprint to guide you to your business. It will create a vivid picture of how your business will be, what possible roadblocks you may encounter, how your business will work and generate money, and most especially, how it will grow.
Although it sounds overwhelming to even start writing your own business plan, it is much simpler than you think. To help you write, you first need to identify the purpose of your business, second is your target market, and third is to take action. Once you have this information, you will enjoy writing your business plan as you will find it much easier.
Having a vision for your business is important. It’s best if you have a clear goal in your mind and what you need to do to achieve it. Goals are usually driven by dreams and passion that create your sense of purpose. It also serves as a guide or the “North Star” of an organization, which therefore creates a sense of direction and belongingness. When properly aligned, it helps the organization to work harder and increase productivity and efficiency, leading your business to success.
Setting goals help you stay motivated to turn your vision into reality. Like your vision, it gives you a sense of direction and takes charge of the future of your business. But your goals and objectives are more comprehensive than your vision because this somewhat serves as your step-by-step guide on how you will achieve the intention of your vision.
Your goals and objectives should be SMART:
Pinpoint what sets you apart from your competitors or what extras your customers are getting from you. This way, you will know what your advantages are against your competitors. Also, this will help you attract and retain customers.
To help you identify your UPS, you should:
Your research in your market can make or break your startup business. Studying your market can help you reduce the risk of failure because you will have a better understanding of your target customers and what makes your product or service stand out compared to your competitors.
The elements of your market analysis should include:
The more you know about your target customers, the more you will know where to find them, how to reach them, how to talk to them, and what you can offer to them.
These four elements can help you profile your target customers:
In every business, there is a need or demand that needs to be filled. So before you start building your business and spending time and money, you must know if your customers want to purchase your products or avail of your services.
How would you know if your business will sell to people? It should answer these three critical questions.
When you have the answers to these three critical questions, you can create value for your product or service, and that will classify your unique selling proposition.
If you are operating alone, then this section can be disregarded. However, this section is essential to include in your business plan if your business structure is a partnership or multi-member limited liability company (LLC).
In this section, you only need to cover the following:
This part of the business plan should clearly describe the product or service that you will provide–but that’s not all. You should also define and showcase the benefits your customers will be getting with your product–its quality, value, and how it is going to compete in the market.
The service or product line section should include:
“Plan your work and work your plan.”
A business plan will not take effect if you do not start working. You have created a business plan, so might as well work according to your plan.
Ready to move up in your career? Advance your skills with 30 days FREE of All Access Pass and learn from over 1,000 online video courses. Click here to get started.