Friday, June 27, 2014

How to: creating a business plan

Are you thinking about starting your own business? If so, the first typically involves writing a business plan. There are a few different ways to start - so ask yourself these two questions questions to decide how detailed your plan needs to be:
Who is the plan for? and  What time frame are you looking to cover?
If you answered:
The plan is for your reference, short time frame (i.e., one year): Then you may only need a lightweight document that outlines your high-level goals to get the business off the ground and increase revenue to breakeven.
The plan is for external use: Then your business document should be longer term (think 3-5 years) and include project financial information and other nitty gritty details. Business plans for external reference are often used to gain interest from investors or secure loans.
Today, we’ll cover the business plan for reference or internal use, which can also be used as a great starting point to gain external funds when that time comes. Here are the three main bases you should cover:
1. Industry information: This is the very first step to writing a successful business plan. Before you can define your business and how you’ll be successful, you have to understand the industry that you plan to launch a company in. Specifically, outline each of these:
a. An overview of the industry (past, present and future)
b. An in-depth analysis of the market.
c. Where your product fits into the current market.
2. Competitive information: Some business owners don’t start by peeking at the competition for fear of being intimidated or due to the desire to be original. While I understand this logic, not looking at the competition is a mistake. You should understand who is selling similar products or services, what their presence looks like locally and online, and have a full understanding of their strengths and weaknesses. A SWOT analysis of main competitors is an easy way to start.

3. Your plan. This includes an overview of your business and how you are planning for success. What will you sell? Where will you sell? How will you sell? How will you compete with similar businesses? Why is your product or service different or better than anyone else in the space? If there are no true competitors, why will your company be a success? How will you create the need?

Be sure to include both high-level overviews and an appropriate level of detail in each of these sections and you’re well on your way to having a comprehensive business plan. If you plan to use this document externally, be sure to consider financial information as well.

Have any questions or comments? Feel free to drop me a line at jackie@jackiesteinmetz.com or leave a comment below!


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