Julian Drago
October 2, 2023
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At a time when more than 20% of small businesses fail in their first year, having a clear, defined and well-thought-out business plan is a critical first step in setting up a business for long-term success. This will give you a roadmap to follow and help you avoid common pitfalls.
In this blog post, we'll explain:
A business plan is a written document that describes a company's goals and how it plans to achieve them. It includes information on the company's products or services, target market, marketing strategies, financial projections, and management team.
Although they're especially useful for new businesses, every company should have a business plan. Sometimes a new business plan is created for an established business that has decided to move in a new direction.
A business plan can help you to:
Every business needs to have a vision or a clear idea of what it wants to achieve in the long term. Your vision should be ambitious and inspiring, and it should guide your decision-making and planning.
To start developing your business vision, answer these questions:
You may also want to write a mission statement, which is a short, concise statement that describes your business's purpose. Your mission statement should be easy to remember and should communicate your business's unique value proposition.
Once you have written your vision and mission statements, share them with your team and stakeholders.
The value proposition section of your business plan should focus on the benefits that your business provides to customers, rather than how your business is structured.
To do this, you will need to do some market research to identify your company's competitive advantages. This will help you to earn the trust of investors and potential customers.
Focus on the benefits to the customer, not the features of your product or service. Ask yourself: What problem does my product or service solve for the customer? How will it make their lives better?
Once you have a good understanding of the benefits to the customer, you can start to craft a value proposition that is clear, concise, and compelling.
How will your company be structured and managed?
There are other things to consider when structuring your company, such as:
Liability: Different business structures offer different levels of liability protection. For example, an LLC can protect your personal assets from business debts and lawsuits.
Taxes: Different business structures are taxed in different ways. For example, a sole proprietorship is taxed as a pass-through entity, meaning that the business income is taxed on the owner's personal tax return.
Ownership: If you plan to raise money from investors, you'll need to choose a business structure that allows you to sell shares of ownership in your company.
In this section of your business plan, you'll identify your target audience, sales channels, revenue sources, and estimated costs. This information will also help you develop a marketing plan.
Your ideal customer will depend on the type of business you are in. Once you know your target audience, describe how you plan to reach them. Marketing plans vary widely but should be tailored to the specifics of your business and work in harmony with your sales channels.
The executive summary is the most important part of your business plan, so write it last, even though it comes first. It's the first part of your business plan a potential investor will see, so make a strong first impression.
Start your executive summary with a short, engaging introduction that is tailored to your audience or type of business. Opening with a relevant industry trend is a great way to grab attention.
Next, address the most important points of your business plan: who you are, what your company does, where you're located, and how you'll operate.
A business plan is a document that explains your business idea and why you believe it will be successful. The more detailed and well thought out your plan is, the more likely you are to achieve your goals.
A business plan is a written document that describes a company's goals and how it plans to achieve them. It includes information on the company's products or services, target market, marketing strategies, financial projections, and management team.
Although they're especially useful for new businesses, every company should have a business plan. Sometimes a new business plan is created for an established business that has decided to move in a new direction.
A business plan can help you to:
Every business needs to have a vision or a clear idea of what it wants to achieve in the long term. Your vision should be ambitious and inspiring, and it should guide your decision-making and planning.
To start developing your business vision, answer these questions:
You may also want to write a mission statement, which is a short, concise statement that describes your business's purpose. Your mission statement should be easy to remember and should communicate your business's unique value proposition.
Once you have written your vision and mission statements, share them with your team and stakeholders.
The value proposition section of your business plan should focus on the benefits that your business provides to customers, rather than how your business is structured.
To do this, you will need to do some market research to identify your company's competitive advantages. This will help you to earn the trust of investors and potential customers.
Focus on the benefits to the customer, not the features of your product or service. Ask yourself: What problem does my product or service solve for the customer? How will it make their lives better?
Once you have a good understanding of the benefits to the customer, you can start to craft a value proposition that is clear, concise, and compelling.
How will your company be structured and managed?
There are other things to consider when structuring your company, such as:
Liability: Different business structures offer different levels of liability protection. For example, an LLC can protect your personal assets from business debts and lawsuits.
Taxes: Different business structures are taxed in different ways. For example, a sole proprietorship is taxed as a pass-through entity, meaning that the business income is taxed on the owner's personal tax return.
Ownership: If you plan to raise money from investors, you'll need to choose a business structure that allows you to sell shares of ownership in your company.
In this section of your business plan, you'll identify your target audience, sales channels, revenue sources, and estimated costs. This information will also help you develop a marketing plan.
Your ideal customer will depend on the type of business you are in. Once you know your target audience, describe how you plan to reach them. Marketing plans vary widely but should be tailored to the specifics of your business and work in harmony with your sales channels.
The executive summary is the most important part of your business plan, so write it last, even though it comes first. It's the first part of your business plan a potential investor will see, so make a strong first impression.
Start your executive summary with a short, engaging introduction that is tailored to your audience or type of business. Opening with a relevant industry trend is a great way to grab attention.
Next, address the most important points of your business plan: who you are, what your company does, where you're located, and how you'll operate.
A business plan is a document that explains your business idea and why you believe it will be successful. The more detailed and well thought out your plan is, the more likely you are to achieve your goals.
