A business plan can be the difference between an unsuccessful startup and a successful company. A plan helps you gather information about your business idea, set goals, and outline the steps needed to achieve those goals.
A good business plan will also help you get loans from banks or investors, and give you the information needed to succeed in your industry. This guide will help you understand why it’s important to write a business plan, how to get started on one, what to include in it, and more.
What is a business plan?
A business plan helps formalize your idea and can streamline the business creation process by getting you to sit down and think things through. Plus, having a plan will help you feel prepared when the unexpected happens.
The most important part of creating a business plan is knowing your goals. What are you trying to achieve with this venture? Do you want to make money, have fun, or try something new?
Once you know what your goal is, it's time to start designing your plan. Ask yourself these questions:
What do I want my company name to be?
Do I need a logo?
How much money will I need for startup costs like equipment, office space, inventory and salaries?
How long does it take for a business to break even?
Is there any personal debt that needs paying off before starting the business (student loans, mortgages)?
How many hours per week am I willing to work on my company (startup phase)?
How many hours per week am I willing to work on my company (growth phase)?
What kind of competition do I expect from similar companies in this field?
How many hours am I able to commit per week to running this type of business (at peak season)?
Also Read: How to Make Your Business Successful?
What should I include in my business plan
A business plan is a written document that outlines the goals and objectives of your company, how you intend on achieving them and what resources will be needed. It also includes information about the management team, company financials and marketing/sales strategies.
The most important thing you can do before starting your business is write a business plan.
A good business plan will help guide you through tough decisions, inform potential investors or lenders and provide valuable information for those that may need to contract your services. It's always better to spend some time writing out a formal document than it is to just 'wing it.'
Here are some things you should include in your business plan:
- Who is on your management team?
- How much money does the company need?
Financing your business
First and foremost, how do you plan on financing your business? If you're not sure what type of business you want to start, it can be difficult to determine the cost. You should consider two things when figuring out how much money you need in order to start a business: how much cash will be needed and how much equity will be needed.
One way that people finance their businesses is through venture capital firms (VCs). These are organizations that invest in various types of businesses, including startups.
When VCs invest in a company, they usually provide some amount of cash or equity for the company. In return for this investment, the VC receives ownership shares in the company.
Things to know before starting your own business: Before deciding if opening up a new company is right for you, think about what resources are available to you.
Do you have a high-paying job with benefits from which you could easily leave without consequence?
Do you have savings from which you could draw funds without having to worry about going into debt or borrowing too much?
Think about how long it would take for the new venture to turn profitable and how well established the competition is in that market.
Where do I start?
The first thing you need to do before you start your business is figure out what kind of business it will be. There are many things you have to consider when creating a new business, and the type of business is one of the most important.
This decision will determine how much capital you need, what licenses or permits are required, and how long it will take for you to get started.
Once you know what type of business it will be, it's time to think about your name. Naming a company can be a lot of fun, but it's also an important decision that can make or break your brand identity. Here are some things you should know before naming your business:
- Do some research to find names similar to what you're thinking about so that no one else has the same name as yours.
- Make sure the domain name is available too! For example, if Bob Smith was already taken, then there wouldn't be any point in naming the company Bob Smith. You would just end up being Smith Inc. instead.
- Choose something simple and easy-to-remember since people won't remember all those hard-to-pronounce names as well as they would if they were simpler.
- If at all possible, avoid using common words like the, a, or other words with multiple meanings in order to avoid confusion with other companies' brands.
Steps to creating your own marketing strategy
1. Determine your marketing goal. Determine how you want people to perceive your business, product, or service.
2. Determine who will be your target audience and how you want them to perceive your business, product, or service.
3. Decide on the specific marketing strategies that will help you achieve this goal for your company (ie- advertising, events).
4. Determine what tools and features are available for you to use in order to execute these strategies (ie- Facebook ads).
5. Research how to start a business in your state or country. What paperwork do I need? Do I need a permit? How much does it cost? What is the time commitment expected of me?
6. Pick a name for your company!
Also Read: How to Make Your Business Successful?
