Many people think that a business plan is like a school assignment. You only need to fill in more than 20 parts and it is over . Actually, this is wrong. A business plan is not a school assignment and is more than just filling in the blanks. You have to start thinking from day one about how to survive in this industry for a long time, how to start this business, how to make a profit. Your business plan should be clear and concise and doesn’t need to be fancy to be successful. A well-developed business plan provides a roadmap for your company and is a great starting point.
This article will provide you with 8 practical tips to start your business on the right path:
1. Understand your competitors
Know who your competitors are and what sets your company apart from others. Sometimes your competition isn't because they have another business, but they have a brand new technology. It might make something you use obsolete. Use your own strengths to make yourself different from others.
2. Be conservative in financial estimates and forecasts
Many people think their business plans are conservative, but most are not. If you strongly believe that your company can achieve 50% market share in the first year, then you can explain why you believe that and analyze and explain what the numbers mean. However, be as conservative as possible. For example, capturing 10% market share in the first year will be more credible. It's best to have examples to prove that your estimates and forecasts are conservative.
3. Every goal and requirement you put forward needs evidence to support
If you want to be a leader in your industry within the first six months, you have to tell why you think you are. If you think your product is going to take the market by storm, you have to have the data to back it up. If you feel your team has what it takes to help you succeed in your business, then you want to make sure your employees' experience is up to snuff.
4. Spend time researching and understanding the industry
Take some time to research the market you are entering. Find out who your audience is, understand your competitors, and what documents and money are needed to enter the market
5. Time is more important than tabular form
If you spend a lot of time on the Internet looking for good-looking templates, you're wasting time writing business plan content. Form is not important, and a template of expenses will not lead you to a successful business. A simple word document is enough. A template is just a shell, as long as the content inside has practicality, appropriate marketing planning, understanding of venture capital, and competitive pressure.
6. Don’t complicate matters
If you had one minute to explain what you did and for whom, what would you say? If you had to condense your business plan onto one page, what would be the most important things to include? Ask yourself the important questions from the beginning and don't make things more complicated.
7. Product Pricing
This is a critical part and the basis of the business plan. What is your service menu? How much does it cost? Who will buy it? What is the market price? How are you making money now, and how will you stay profitable in the future?
8. List your assumptions
In financial forecasts, those numbers are a series of assumptions. Listing what-ifs can serve as goals for your future action plan. This way, if the assumptions materialize in future business, so will your financial projections.
If you need help writing a business plan, please call the Golden Key Business Development Center at 416-551-9990/416-705-1122 for consultation.
Learn more about business plans: https://www.goldkeybiz.com/maintaining-business/business-plan/
