The process of writing down a business plan requires dealing with who, what, when, where, why and how. We will focus on logical, practical and methodical.
As a budding entrepreneur, a business plan serves as your roadmap for your business. With this, you know where you are going and how to get there.
It also serves as a benchmark for measuring your progress. It includes an action plan and a set of strategies for your business to reach its maximum potential.
Logical – Creating a marketing plan
There must be a specific part of the business plan dedicated solely to market analysis. In it you must describe your target customer’s profile, the characteristics of the market, competition and your strategies to gain advantage over them.
In other words, this is a particular point where you need a marketing plan that will focus on the distribution system, products or services offered, price charged and 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 opportunity 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 goals, and the perceived value of your products or services.
In addition, the distribution part of the marketing plan must describe how the products or services will be distributed. It should provide details on how the product or service is distributed or sold, perhaps through retailers or direct sales.
Practical – financial plan and legal issues
As a rule of thumb, your business strategy should outline the most cost-effective and practical way to achieve each goal. With this, you must have a financial plan that includes how much money it will cost, as well as getting the necessary funds.
Your financial plan is considered a significant part of developing an estimate of profit potential and evaluating a new investment opportunity. This special section will discuss the current financial status and the current forecast for your future financial statements. Your revenue, expense, and product demand forecasts should be as good as your assumptions, so they must be realistic and valid.
On the other hand, you must also protect your business from imitators by emphasizing trademarks and service marks. With this, the marketing symbols of your company’s products and services will be protected.
Methodical – The implementation of marketing plan
When creating a business plan, identify your strategy. In this regard, you must have an overview of the steps required to achieve the goals and objectives you have identified. This overview includes the day-to-day running of your own business.
This also means implementing the marketing plan. This is a particular point where you need to create an optimal combination of marketing strategies to get the attention of your potential customers.
Remember, your business plan should also have an executive summary that highlights specific functions 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 cash forecasts, and return to the investor.
One last thought
Remember, as a budding entrepreneur, a business plan can help you communicate your idea to your employees, potential employees and customers and suppliers.
It will act as your communication tool, which is why it needs to be carefully developed, comprehensive and detailed. It will serve as a reminder of your goals and plans, so always review your business plan.
It is best to review your progress on an annual basis so that you can measure the actual performance of your business. Keep in mind that the market and nature of your business will change over time, so it is best to update and revise your business plan once a year.