Business Plan

Discussion in 'Articles & Tutorials' started by avillasage, May 15, 2015.

  1. avillasage

    avillasage
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    Good day everyone, I read some article from google and I want it to share it with you guys.

    6 Critical Questions Your Business Plan Must Answer

    Never underestimate the importance of your business plan. It is the backbone of your company, a foundational pillar from which your enterprise will be built. It’s going to serve as the first impression for countless potential partners and investors, and it’s going to serve as a roadmap for your whole business -- at least for the first several years.

    In some ways, writing a business plan is easy -- there are no rules or requirements for length, format, presentation, or even subject matter. But finding the right answers to the right questions is critical if you want to lay the groundwork for a stable business and attract sufficient attention from investors.

    1. What need are you addressing?
    This is an important question because it extends beyond the simple “What does your business do?” It’s one thing to outline your business in general, describing what products you make or what services you offer, but if you want a solid business plan you have to take it to the next level.

    2. What makes you different?
    It’s a big world out there, and startups are constantly coming on and off the radar. Chances are, there are multiple businesses out there who are already serving the crucial need you outlined from question one. That doesn’t mean you can’t serve it better, or serve it in a different way, but therein lies the challenge—figuring out what makes you different.

    First, you’ll need to acknowledge all the major players in your space, and this is going to require some research. Acknowledge what they’re doing right, what they’re doing wrong, and how they’re going about their business. Identify the differentiating factor that will allow you to stand out, and emphasize it.

    3. Who is your audience?
    Here’s a hint: the answer can’t be “everybody.” No matter how useful or practical your product or service is, there’s no way you’re going to be able to sell to everyone in the world. Think about factors like age, sex, education, geographic location, working status, marital status, and perform some preliminary market research to determine the best path forward.

    Your key demographic may evolve over time, so don’t stay too committed to one niche. Also remember, that it’s easy to expand to other markets once you’ve established yourself in one, so if you have multiple key demographics, it may be wise to focus on one to start things off.

    4. How is your business going to make money?
    This seems like an obvious question to answer, but you’d be surprised how many entrepreneurs fail to elaborate on their plan. The brief answer to this question is “sell products/services,” but how are you going to sell? Where are you going to sell? How much are you going to sell for?

    The other side of the question is what are your operating expenses? Who are you going to pay? What services or partners will you need to pay for? And ultimately, will the amount you sell be able to surpass the amount you owe? When will you break even?

    4. How is your business going to make money?
    This seems like an obvious question to answer, but you’d be surprised how many entrepreneurs fail to elaborate on their plan. The brief answer to this question is “sell products/services,” but how are you going to sell? Where are you going to sell? How much are you going to sell for?

    The other side of the question is what are your operating expenses? Who are you going to pay? What services or partners will you need to pay for? And ultimately, will the amount you sell be able to surpass the amount you owe? When will you break even?

    5. How will you promote your business?
    Promoting your business is just as important as creating it. Otherwise, people will never know who you are. Your marketing strategy should start off based on what similar businesses before you have done. Do they rely on traditional advertising or online marketing? Do they attend tradeshows and local events, or use technology to spread the word about their existence?

    6. What do you need to get started?
    For many potential partners and investors, this is the bottom line. All businesses have to start somewhere, but that starting line varies dramatically from industry to industry and from entrepreneur to entrepreneur. Do you need any advanced equipment? Who will you need to hire? How much will you need for an initial run? These questions should give you an idea exactly how much capital and what resources you need initially.

    It may seem counterintuitive, but answering these questions isn’t a one-time process. Your business plan should be a living, changing document that evolves along with your company. Throughout your course of entrepreneurship, you’re going to encounter new challenges, new opportunities, and hundreds of factors you never considered as significant to your business when you were writing the initial plan. To survive, you’re going to have to revise your answers to these questions and update your business plan accordingly.

    Related: The Essential Ingredients to Startup Success


    Source: http://www.entrepreneur.com/article/242596
     
  2. elbertglazer

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    Thinking a business plan for your business is too difficult, and reading this post from you was so nice, thank you for sharing.
     
  3. tsubibo

    tsubibo
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    Good share. The business planning side of investing your money in a business is often overlooked. It is probably one of the most important ones.
     
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  4. chad23

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    When I'm going to start a new business the very first question I ask myself is "What are my 5 benefits comparing to my competitors?" If I have at list 5 I continue planning.
     
  5. navarromarillou

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    When it comes to the business world, there are so many difficulties before you reach your goal. But if you have a business plan like this, nothing is possible.
     
  6. Bestnes

    Bestnes
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    Business Plan

    Helps You Get Money
    In my experience, about 45% of the people currently in business do not know how money flows through their business. Writing a business plan, teaches you where money comes from and where it goes

    Helps You Decide to Proceed or Stop
    It is designed to provide answers to all the questions that prospective lenders and investors will ask.
    Lets You Improve Your Business Concept
    This ability to fine tune your plans and business design increases your chances of success.
    Improves Your Odds of Success
    Writing a business plan helps beat the odds
    Helps You Keep on Track
    A written business plan gives you a clear course toward the future and makes your decision making easier.

    What if I do not use Business Plan?

    Taste (today and future)
    People’s tastes drive many of the changes our society speeds through
    Trends (today and future)
    It’s hard to accurately predict what will be popular in a few years
    Technology (today and future)
    Sometimes it takes years to perfect an item
     
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  7. B2025

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    Agree with Bestnes above -- it appears as though this post fails to mention the financial aspect.
    You can do all the qualitative narratives you want, but the bottom line is this:

    Product/Concept
    Market/Potential/Risks/Advantages
    Financial Plan

    Bam. Business plan described in 3 bullets.

    Focus on what's important, build your plan around it.
     

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