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Creating A Killer Business Plan


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Why You Need A Business Plan

business plan
A business plan helps provide a foundation for your entire business. Before you make any long-term commitments to a business you should invest time and energy to create a business plan. Creating a business plan helps you in many ways before you even open your doors. First off, you will need to create a budget, an advertising strategy, a market analysis. All the data you will be compiling will help you thoroughly understand what your getting into and how you can penetrate your market.

A business plan will also help you obtain an investment, guide a partnership, get credit, and more. Before anyone invests in your business they are going to want a a full plan of action so they can see how they will earn money on their investment. When applying for loans and credit banks will want to see your business plan so they can make sure the loan will not default. Finally, a business plan helps guide a partnership if there are any disputes.

Creating A Killer Business Plan

creating a killer business plan
When you begin creating a business plan there are a few things you will need to gather. You will need information on the market you are looking to enter. You will need to create budgets, projections, and financial data. You will also need to narrow down your target customers and how you are going to reach them. Here are the main components of a business plan:
1. A Business Summary
2. A Mission Statement
3. Market Analysis
4. Company Management
5. Service / Products
6. Marketing & Sales Strategy
7. Financial Projections & Budget (monthly & annually)
8. Funding Requests

1. Business Summary

A business is a general summary of the business. What you are offering, who would be interested in your offering (customers), and how you are going to enter a market. You do not need to go into great detail here, because you will be covering each topic with great depth later in the business plan. This will just be a snapshot of your company as a whole.

2. A Mission Statement

mission statement
Your mission statement is the purpose of your company. Creating a mission statement has many benefits. First off, it’s the guiding light for your business decisions. It also helps your customers relate with your business. A mission statement gives your customers a sense of your beliefs, values, goals, and core principals.

3. Market Analysis

killer business plan market analysis
A market analysis is essential before you start your business. This is an analyzation of your competition, your target customers, and your industry. For this phase of your business plan you are going to need to do a lot of research and analysis. The first portion of the market analysis is your target customer base. You need to figure out their core needs and how your business can meet those needs. This will be an important step, because if your business does not have a big enough customer base then your business will fail before it even gets started.

Next you need to develop an analysis of your competition. During this phase you want to analyze each competitor and list their strengths and weaknesses. This research will help you differentiate your business from your competition and how you are going to serve the target customers better then they can. Will you be selling higher quality? Cheaper prices? offer better customer service and support? Have a better marketing strategy, etc.

The final portion of the market analysis is the industry as a whole. Is it a new and upcoming industry, a mature industry or an industry on decline. By analyzing the industry you will know if there is room for your company to grow.

4. Company Management

This phase of your business plan highlights the key managing members of your business. This lists off their skill sets, experience, and their abilities. This portion of your business plan is extremely important if you are seeking investments or loans. Often times angel investors will be looking at the management team as a whole to determine if they want to make an investment or not.

5. Service / Products

One of the first decisions you make when starting is business is what you are going to sell. The product/service section of the agreement you should have a extensive understanding of. In this portion of the plan highlight why product (or service) and how it’s different then the competition.

6. Marketing & Sales Strategy

A new business needs a sound marketing and sales strategy. This is the most important stage for a new business because it is essential for you to spread the word about the new business to have a successful launch. The first wave of customers is going to be extremely important if you are running a tight budget. Generating buzz about your business and getting people excited will give you a chance to steal your competitors business.

7. Financial Projections & Budget (monthly & annually)

budget
This section is important for your business and if you are seeking an investment. A budget helps you know exactly how much revenue you need to generate to break even. Your projections will see if it is worth it to enter into the new market. If you cannot project increases in sales and generate enough money to keep the doors open then this is not the right market for your business. From an investment standpoint investors will want to know exactly what their contributions will be gong towards. As your business grows this can easily change, but for the initial opening of the business you should have a sound understanding of your finances and what you will need to keep the business up and running.

8. Funding Requests

The final stage of your business plan is your funding requests. This portion is only necessary if you are seeking an outside investment or loan for your business. In this section of the reports you are asking for a certain amount of money and why you need it. This will help investors or banks decide if providing you with capital will help your business grow and ultimately pay off your loan or grow their investment.

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