How and Why to Create a Business Plan
Congratulations on venturing out to start your own business. Now it's important you keep the momentum going by drafting a business plan. Building a business plan is one of the first recommended things you do to set a path for your business. Quite honestly, most new business owners aren't motivated to create one. The average first timer have a specific goal in mind; create a useful service to make money. There's nothing wrong with that, but for all intents and purposes, to accomplish your business service or financial goal, you need a solid plan. For beginner's sake, let's get started by outlining how to create a business plan. For those who want to dig deeper, I give more details in my other post on business plan etiquette to wow investors.
- Mission and vision
- Business description
- Marketing strategies
- Analyze your Competition
- Who will manage the business
- Plans for seed money or capital investment
- A necessary change in marketing tactics
- You might acquire new investors who suggest changes.
- Your business service might have evolved over time.
- Your target demographic might increase, decrease, or change completely.
- You have a change of heart about your business goals.
The first step towards any business is a perfect business plan that you can follow and move on step by step. And marketing is the most important thing in this plan as it is important to promote your business.
There's no pressure to create a business plan, but it's a good rule to have one. Even a descriptive paragraph about your business on a napkin could serve as a plan, that's how mega-social networking giant Twitter started. There's no perfect business plan, only an amendable one that states the facts and intentions of your business.
A solid business plan is a lot to brag about. You'll attract the best employees and top notch investors. Here's how to create that killer business plan every small business owner craves.
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Comments
Sometimes you don't even need to follow the official business plan templates. I know some guys who have some pretty successful businesses in technology and finance and they do everything with just ideas and plans written down in personal books or lose papers they carry everywhere. I personally wouldn't do it that way because it seems easy to get lost but I guess they have it down pack where it works for them.
The best business plans are the ones you rarely have to change, because that generally means your business model and products and service must be pretty good. I've seen people who've revised their business plan at least a million times and still struggle to make a profit with their small business. If an idea is good and executed well to the appropriate niche, it's bound to make money.
Great business advice and breakdown of the business plan Priya. I had just launched my own local business two months ago in Connecticut. I'm running a custom evening and formal gown store and my biggest competitors are currently outselling me. I do pretty well but would definitely like to do better, possibly branch out online and ship items sold across country. I'm not complaining because my dresses are selling but I think I'll revise my old business plan because I the branching out option is high on my list and I might need some external investment money to do it.
I actually must say my best laid business plan isn't saved on paper but right in my head. Now most people can't do this but It's something that I just seem to be able to do. I don't think everyone needs a business plan, just those who intend to take their company to the next level of bringing on investors, especially if you run a corporation.
I've used the software business in a box to create my business plan, but it was generally really long and I decided to shorten it a little. Your business plan doesn't have to be long and neverending, simply state the purpose of your business, how you'll market it, define your competition, and describe how you'll execute duties to generate revenue. SOme people make it way more complicated than it should be
My business plan was ridiculously long and detailed and I cut it down to the core information listed here, showed it to an investor and he immediately loved it. I'm sure this was just the pudding on the cake though as he had already thought my business idea was pretty solid. I just needed the funds to start building and marketing it into a working service. So far so good.
I've had my business plan for a good three years now and have barely changed it. Been approached by more than one investor about funding my business but so far I've refused. I'm doing well, and when the time is right for me, Maybe I'll consider bringing on the investors. Besides I'd have to switch my LLC to a corporation first and that's definitely not in the business plan.
A business plan is only as good as the growth potential of the company it was created for. If investors aren't really sold on the potential of the company to make money they won't even bother, no matter how well the business plan is written.
A business plan is super important. Trust me! From someone who has worked without a business plan and failed, to someone who has worked WITH A business plan and succeeded. Thanks for your blog.
@Kathryn Sias, Thank you so much and I'm very glad you found this information helpful. I'm also wishing you many successes in your business at oAssist LLC. I look forward to staying in touch through social media and other online business networking mediums :-)
Having your "business plan" in hour head or jotting down ideas in a note pad might work for some, but if you need to request funding you have to have a traditional business plan. Using the SBA preferred format is still a necessity. Simple one page plans or a few PowerPoint slides might be ok for an initial conversation with an Angel investor. But if you need to apply for a bank loan a formal written business plan is a must.
Thanks for the good post Priya. I'm one of those that have a business but still don't have a good business plan. I've been wondering for a while whether I really needed one but I guess it really doesn't hurt to have it just in case business takes off big one day.