Do you think it is necessary that every business needs a viable, palpable plan?
Before we set out to know what is a good business plan and if every business needs a plan in place, do you know the definition of what a business plan is? The dictionary defines a business plan as A document setting out a business’s future objectives and strategies for achieving them. So, how do we get to this document and how can we have one for your business? We will try and decipher this query through this article that we have put together based on our research and learnings. There is an abundance of material available online on what makes a sound business plan, but in this write-up, we want to jot it all down to the absolute crux of items that make a good business plan.
Have a highlight reel: In business language, you may call it an Executive summary. But precisely, an executive summary is all the important points you want to put on the top of the document for your partners, customers, and investors to know about your business and how is it helping them. It concisely
helps them understand: what is your company? How is going to make money? And why will a customer pay for your product or service?
Have a clear business model: Again, the dictionary definition of a business model is “a plan for the successful operation of a business, identifying sources of revenue, the intended customer base, products, and details of financing.” So, have a clear picture of all the revenue sources for your business like sales of the product or services, digital efforts paying back from online advertisements or
conventional ad systems, or just the franchise and licensing deals, etc. And also, it is important to have intimate knowledge of your cost structure including talent cost (hiring, retaining, and salaries), facility and inventory management and maintenance etc.,
Have a tactical marketing plan: Even before setting up a business, it is ideal that we do as much and all the research we can do about the market segment that you are entering or catering to. No amount of research is ever enough. You will have to have few questions clearly answered;
1. Defining the target market
2. Evaluating marketing budget
3. Knowing your customers
4. Competitor knowledge
5. Digital and conventional marketing channels
6. Promotional plans and channels
7. Customizing/enhancing the product/service per the customer feedback
Have a grip on the financial situation: The money that is being invested and the bottom-line we are anticipating should be clear figures with minimal variation percentage. If you are aiming at getting investments or otherwise, we should transparently state the past financial performance and the financial projections for the current fiscal and a couple of fiscals forward. Presenting the balance sheet and the cash-flow statements is a must to the prospective investors and the invested customers. The more cost-aware and inflow-sensitive your business, the better the bottom-lines can get.
Have a sustainability factor: In today’s day and age, with the most buying capacity invested in the millennials who are more origin and authenticity curious, have a niche carved in terms of eco- consciousness and green footprint. When your business is contributing to the betterment of the world,
the more socially positive brand value your company can have. So, figure out the ways and means you can incorporate a social stretch into your business plan. Having all these concepts tackled, you should have a clear and crisp document in hand that can concisely deliver your business message to the invested audience. A business plan is a powerful medium to build your business, earn you more customers, steer your employees towards a common business goal, and make investors believe and invest in your business. Did this article help you get better clarity on how a business plan should look like? Do you think we can add more to this list, please let us know in the comments?
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