In today's world of business, many individuals are driven to create their own business. Establishing a start up business, regardless of how large or how small, requires the development of a thoughtfully prepared business plan.
Business plans provide direction and clarity. They keep the start up business focused on long-term objectives and vision for the future. Following these clearly defined steps will lead to a concise business plan that can be enhanced and updated as the business evolves.
Description of the Business
One of the most important aspects of a business plan is the description of the overall business. This is often referred to as the Executive Summary and it explains the purpose of the business. It includes information about who owns the business, management biographies, the primary products or services, where it is located, when it was established, and why it exists.
Including information about how the business solves a customer's problems is an important component of the Executive Summary. For example, explaining that the products offered will make it easier for customers to quickly find unique home accessories at an affordable price is a good value proposition. Stating that the business will create professional resumes and portfolios to help individuals find the right job quicker is a valuable service. Let the target audience know what's in it for them.
The Executive Summary is also a good place to include brief information about the company's driving principles such as integrity, customer relationships, and value.
Mission Statement
The mission statement is a valuable part of the business plan since it touts the value of the business to customers. It is the statement of the business purpose. Perhaps the mission is to provide a unique, international selection of home decor products at an affordable price. Maybe the mission is to create professional, compelling resumes that focus on rapid placement of executive level professionals.
The mission may also include statements such as the focus on the highest levels of customer service or reducing the time it takes to find a job through a broad range of networks. Focus on the most succinct way to define the mission and share it in the business plan.
Marketing Strategy and Audience
A well-written business plan includes marketing strategy that focuses on the types of promotion, advertising, and outreach involved. It also includes an evaluation and dissection of the competition based on the SWOPTs -- or strengths, weaknesses, opportunities, problems, and threats from the competition. A clear understanding of the competition strengthens the business model and provides valuable information to differentiate the business from similar businesses.
Marketing strategy should also include ways to set the business apart from the competition and create a product or service niche if that is one of the goals. Niche businesses do not cater to a huge audience, but they focus on a very specific targeted audience for success.
The strategy should take the target audience into consideration. Include data about the client demographics and define the primary customer. This helps drive the marketing strategy. Different strategies are utilized for a target audience of females between the ages of 25 and 39, and an audience of females between the ages of 62 and 75. Stay focused on the target audience and understand their buying patterns and unique needs for the best marketing strategies.
Financial Analysis and Reporting
Include components of the financial analysis in the business plan such as a projected balance sheet, revenue projections over a period of time, break-even analysis, capital equipment and supply listing, pro-forma cash flow, and any other relevant financial information. This serves as a roadmap going forward and helps keep the business on track and financially solid based on plans.
Pricing strategy, sales forecast, and other financial aspects of the business must be clearly defined.
Keys to Success
This component of a business plan is essential for future success. What drives the business forward? That's the key element of this section. Whether it's online sales, a brick and mortar boutique, outstanding customer service, or a unique product offering, be sure to include it in the plan.
Follow that up with objectives towards success such as maintaining profit margins of x%, increasing product awareness through online advertising, enhancing online presence through forums or social networks, or maintaining low levels of inventory. Decide what is needed to succeed.
Business Plan Resources
For more information on business planning, visit the Small Business Administration website. There are valuable resources, templates, and examples of business plans to make this job easier. A well written business plan will contribute to the ongoing success for the future.
Rhonda Day - With over 25 years of experience in the Corporate world with responsibility for creation of business plans, mission statements, marketing ...
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