Creating a business plan greatly influences your chance of success. That is not to say that success is solely dependent on great planning but statistics have proved that the most successful entrepreneurs were those that wrote their business plan between 6-12 months after deciding to start a business. Your plan not only helps get everything organized but it ensures that you have commercial potential before hitting the market. Nevertheless, before creating your plan there are a few essential questions you need to answer and parts to understand. Below we will take a look at a guide to creating a great business plan provided by an article on INC.
An Executive Summary is a brief outline of the purpose and goals of your business. Your executive summary should do the following:
- Refine and Tighten your concept
- Determine Your Priorities
- Facilitate the Rest of Your Process
Overview and Objectives:
This section breaks down into four parts:
- What you will provide.
- What you need in order to run your business.
- Who will provide the service.
- Who is your audience.
Products and Services:
In this part, you briefly describe what products will be sold and how they will be provided. This section is critical for setting yourself apart on the market.
The goal of this section is to research and obtain an understanding of the characteristics and purchasing habits of your potential audience.
Sales and Marketing:
Customers need to know your product is on the market. That is why it is key to create a marketing strategy in order to produce sales. Here are a few steps needed to create a marketing plan.
- Focus on your target audience.
- Evaluate your competition.
- Benefits of your product.
- Differentiation of your product.
This section is devoted to analyzing your competition. Knowledge of the strengths and weaknesses of your competition is vital to making sure your company survives and grows.
Your operations plan lays out strategies for managing, staffing, manufacturing, fulfillment, inventory, and anything additional you need in order to run your business successfully every day.
Management is one of the most essential pieces used to determine the potential of a business. In this section, you evaluate the skills, experiences, and resources your management team will need in order to run efficiently.
Financial Analysis: Financial projections and estimates help entrepreneurs examine a company’s potential for success. Financial projections determine whether your business has a chance of being profitable or if you need to make some changes.