27 Mar, 2018

Startup Business Plan

Starting a business can be a long and exhausting process for some, but in today’s digital world information can be found everywhere, from anywhere at any time. This should make it a lot easier for the entrepreneurs of the modern day.

Having a great strategy, a clear trajectory and a well-organized plan are all it takes to simplify this dreaded process. A detailed business plan carefully crafted is an excellent idea to start with. You will be able to keep an eye on the progress while you do all the routine necessary steps.

We have created a list that can give you an idea of what a business plan should include. Check it out and enter the business world prepared, ready to properly operate your company and compete in a fierce way! You will see that carefully preparing is actually the key to success.

 

 

1. Executive Business Summary

Although it is first on our list, creating an executive summary for your business should be kept for last when it comes to your business plan. This part of the plan should be able to summarize the following:

·         The most important details regarding your company

·         Its goals

·         A description of the products or services that you are offering

·         Your business’s purpose in a few sentences

·         Information about your company’s target audience

·         The financial needs of your business

·         And last, but not least, your expectations after your company starts making a profit.

An important note here would be that the executive summary should always be kept short, easy to read and written in non-technical language. So if you are able to answer these next questions, you definitely got it right: what will your product be, who will be your customers and prospects, what about the owners, who are they, what do you think the future holds for your company and your industry?

 

2. Company Description

The first thing to cover in this part of the business plan is the mission statement, which should explain the reason why your business exists. Following the mission statement is, of course, your company’s goals and objectives. Here you should focus on clarifying your business’s destination, along with progress markers. In short, this part of the plan should easily answer the following question: What is important to you in business?

Another important thing that should be briefly mentioned here is your target market (of course this will be more detailed in the section of the plan regarding marketing). Next, you need to describe your business’s industry, the way certain foreseen changes will affect it and how your business will actually adapt or even take advantage of those. This can actually be a sub-category of the “company description” called industry analysis.

Your company description should also include your business’s strengths and competitive advantages along with the factors that will make it successful. It is also a good idea to mention the way your skills and experience can influence the future success of your company.

At the end of this part, the legal form of ownership should appear and also the reason why you have selected this specific form.

 

3. Products & Services

This section of your business plan will obviously include the thorough description of the products and/or services that you will be providing. Technical specifications, photos, brochures, and drawings will be put at the end of the plan, in a section also known as the Appendix.

Other things worth mentioning here are pricing, fees and the way the products or services’ features will provide competitive advantages or disadvantages. They should be a great match for your company’s strategies and goals.

 

4. Marketing Plan

The most complex part of your business plan is definitely the marketing plan. With a few subcategories like economics, products/services, customers, competition, strategy, niche and sales forecast.

Effective and efficient marketing is a must regardless of the quality of the products or services. Everything starts off with tons of market research. Even though you may think you already know enough about the market, you need to make sure nothing slips by. In the end, doing plenty of research will surely be worth your time.

 

What you need to know from the start is that there are two types of market research: primary and secondary. Let us firstly address secondary research. It means using and reading through already published information like newspapers, magazines, census data, demographic profiles, studies, industry profiles and trade journals. A useful tip might be to start with local libraries, then move to the SBA website where you will find plenty of valuable information.

Primary research is a way to gather information yourself through surveys, small studies, contacting and getting information about your competitors.

 

Economics

This part of your marketing plans should cover things like the size of your market, the current demand of your target market, trends in the market, as well as the growth and development potential for a business like yours. It is also important to mention if there are any barriers for your business posed by the market (like high capital costs, technology, high marketing costs, branding), and obviously the ways in which you would like to overcome those barriers.

Products/Services

This is another section that will focus on describing your products or services from your point of view. A good idea is to try to underline the features and benefits of the products/services. Questions like “what is so special about your product? /what will the product/service do for the customer?” should be answered. Knowing how to sell the benefits is the key.

Customers/Potential Prospects

After you identify your group/groups of customers you can write a description in this section of the marketing plan. It should include specific characteristics, geographic location and many more aspects of your business.

Competition

Knowing your competition well is quite essential. You can make a list of your main competitors and include it here. Questions like: “How will your products/services compare with the competition?” should be addressed in this section. You may find different tables online that can help you keep information more organized.

Strategy

 

Your business’s marketing strategy might be fundamental to your success. Having a clear trajectory in mind from the beginning will help you set your goals and act according to a well-thought plan. Everything from promotions and pricing should be part of this section of your marketing plan.