Business plans do not have to be complicated, but it has to touch on important points that affect the business. When creating a business plan you have to be clear and concise so that is can be easily understood by the people who will read it. It must serve as a manual for your current and future employees. It must be able to describe what you want and how to get them.
- Describe the Opportunity: What Product you will sell? Who to sell it to and why the market will buy? The market has more power over the business these days. The market now are more sophisticated, the look around first before making a decision. Focus on what the market wants to ensure the success of your business.
- Describe the Team: Who are the people involved and their skills? You need to put people who are right and fit for the job. Find those who are passionate and professional, never work with people who carries bad attitude. The better people you have in your business, the lesser work you have to do.
- Describe the Costs: How much is needed to start? What are the monthly costs and how much sales you needed to cover the monthly costs? As I always say, it is very important to know the finance side of the business. The more you know about the finance, the better you can handle the costs and the expenses.
- Describe the Environment: Who are your competitors? Which market are they after and what their strengths and weaknesses are? You can make better strategies when you know how your competitors work. Remember that it is hard to compete with an established competitor, it is better to find a different target market than compete directly with a bigger competitor, unless you have plenty of money to spend.
- Describe the roadblocks: What are the risks ahead? What can go wrong and what can be done? By knowing these, you can prepare and avoid risks that may lead to the failure of the business. An entrepreneur who is prepared can better allocate resources, like money and people, as risks arise.
- Describe your meaning of success: You need to be clear on what you want to achieve. The clearer you are, the easier it is to make a road map for your business. Your idea of success should motivate you and your people so that you can work towards one direction.
When you have a business plan you are not only creating a roadmap for your business, but you are also giving yourself an extra dose of confidence to pursue your business idea. If you are already in business (big or small), try making a plan and use the above items so that you can have a clearer view of your business. If you are not yet in a business, then it is a must to have a business plan.
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