Two focuses of my blog are Financial Literacy/Money and Business/Entrepreneurship. One of the traditional components to starting a business is creating a formal business plan. The following contributed post is entitled, How To Create A Business Plan.
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If you want to start a business (or even if you already have, but you’re a little lost and don’t know what to do next), writing a business plan is something you will definitely need to do. A business plan will assist your business ambitions in a plethora of ways that range from securing the investment and funding you need to begin (or grow) to finding partners to work with to simply knowing what business decisions to make and when.
Yet despite how crucially important a business plan is, it’s not something that everyone does before they launch their company. This is likely to be because the very idea of writing a business plan is off-putting; it’s hard to know where to begin, and it’s easier to simply make a start and see what happens. However, it is always better to spend the time you need creating a business plan; it could be the difference between success and failure. Read on to find out how to get started and what you should be thinking about.
Tailor It To Your Audience
Whatever the reason for writing a business plan might be, you must ensure that it is tailored to your audience. Think about who will be reading the plan and why they will be reading it. When you understand this, you can ensure that the plan meets their needs as well as your own. A business plan to attract an investor might be different from what a potential business partner wants to see. The information within each will be the same, however, each plan will have something different highlighted as being the most important aspect, the thing you want the reader to see first.
Be Realistic
There is no point in writing a business plan that is full of lofty ideals and huge figures that you’re not going to reach – at least not yet. Think instead about what you intend to achieve over the next 12 months. When you do this, you will still have plenty of goals to reach, but they are much more likely to be realistic ones. Not only will anyone reading through your business plan have more confidence that you can do what you set out to do, but you will be able to follow the plan more closely and ensure that you do reach the goals you have set for yourself.
You will also need to ensure you include all the details about what you want to spend any funding on. Again, this will help lenders make a decision, and it will show you what is most important in your own mind. It could be that payroll outsourcing is something you’re very keen to pay for right away, in which case that needs to be stated in the plan.
Do Your Research
When you write a business plan, you need to find out as much about the marketing you are working in as possible. That includes knowing your competitors, who your target audience is, what kind of marketing attracts the most customers, what price point is sensible when it comes to your goods and services, and even what obstacles you might come up against when you head toward your goals.
Understanding the different strengths and weaknesses of the business you’re building and including them in your business plan shows that you have thoroughly understood not just what you are doing, but how to become better.
