Writing a Powerful Business Plan: Key Questions to Answer
The process of writing a business plan requires dealing with the who, what, when, where, why, and how. We will focus on the logical, practical and methodical.
As a budding entrepreneur, a business plan serves as a roadmap for your business. With this, you will know where you are going and how to get there.
It also serves as a benchmark to measure your progress. It contains an action plan and a set of strategies for your business to reach its full potential.
Logical: creating a marketing plan
There should be a particular part of the business plan dedicated solely to market analysis. In it you must describe the profile of your target customer, the characteristics of the market, the competition and your strategies to gain an advantage over them.
In other words, this is a particular point where you must have a marketing plan that focuses on the distribution system, the products or services offered, the price charged, and the promotional efforts.
You must describe your specific product or service in general terms and provide instructions on how it will be used. This is also your chance to explain what your products or services are, their benefits and features, and other important facts that your target market needs to know.
On the other hand, pricing should be based on the cost of doing business, expected competitive actions, your marketing objectives, and the perceived value of your products or services.
Additionally, the distribution portion of the marketing plan should describe how the products or services will be distributed. You must give details about how the product or service will be distributed or sold, whether through retailers or direct sales.
Practical: financial plan and legal issues
As a general rule, your business strategy should outline the most profitable and practical way to achieve each goal. With this, you must have a financial plan that includes how much money it will cost and how to obtain the necessary funds.
Your financial plan is considered an essential part of developing an estimate of earnings potential and evaluating a new investment opportunity. This particular section should discuss the current financial statement and the current forecast of your future financial statements. Your revenue, expense, and product demand forecasts need to be as good as your assumptions, so they need to be realistic and valid.
On the other hand, you should also protect your business from copycats by giving importance to trademarks and service marks. With this, the marketing symbols of your company’s products and services will be protected.
Methodical – The Implementation Of The Marketing Plan
When creating a business plan, you need to identify your strategy. In this sense, you must have an outline of the steps necessary to achieve the objectives and goals that you have identified. This scheme includes the daily operations of your own business.
This also means the implementation of the market plan. This is a particular point where you need to create an optimal mix of marketing strategies to catch the attention of your potential customers.
Note that your business plan should also have an executive summary that highlights specific features, such as your business mission and goals, products or services, marketing plan, management team, financing requirements, key elements of your day-to-day operations, profits and treasury forecasts, as well as profitability for the investor.
one final thought
As a budding entrepreneur, remember that a business plan can help you communicate your idea to your employees, employees, and potential customers and vendors.
It will serve as your communication tool, which is why it must be carefully developed, complete and detailed. It will serve as a reminder of your goals and plans, so always review your business plan.
It’s best to review your progress annually to gauge the actual performance of your business. Keep in mind that the market and the nature of your business will change over time, so it’s best to update and review your business plan once a year.