Before you start your business, you should be sure that your idea would be profitable right? Who wants to start off investing so much time and money without any hope of making money? Nobody! That is why you should take time to develop a business plan. Because it is only when there is a demand for what you want to offer that you will make money. I know that many people are scared about business plan creation because it sounds so technical and you might have heard that there is a structure etc. In this blog, I will explain how easy you can develop your own business plan. I will also share the standard structure with you.
This is why you need a business plan
Watch this video on why you need a business plan.
Every business must solve a problem. No matter how small or huge the problem is, you must be giving value to the potential customer for them to pay. Now why would you need to develop a business plan and notes to start right away buying the things you need to start the business idea? It is simple and here are just 3 reasons;
- A business plan allows you the time to think through every step of your idea from idea to actually making your first sale.
- You will reduce your risk of failure. Even when I say there is no failure but feedback. I do not want you to lose money. So you will need to sit down and think through hat you want to do. This way, you get to discover even more areas that need some more work.
- Know exactly how much you might need to start your idea. Because while you craft out your business plan, you get to develop a budget too for your business.
Can I hire someone to write my business plan for me?
Many people want to know if they should/can write their rplan themselves or hire someone to do it. My advice is that you write the plan yourself. Because that is the only way you get to think of the most important part of your idea. You only need to hire someone to write a business plan for you if 1.) You minted to show someone important the plan, 2.) and you are nowt very excellent in writing. Now, let’s take a short look at 2 very important parts of your business plan. After that, I will list the items that need to be in your plan in a structured way.
The executive summary opens the door for you
Remember the saying that the first impression matters. Same goes for a business plan. Many people would not have the luxury of time to read through your complete business plan. So they will want a quick overview to understand the idea and see if they will support it. There are some easy formats to present this. Either you develop a 2 pager or a 5 slide deck of your business plan to show people. I have included links to our business tool that will help you create these formats. So basically an executive summary is a short summary of your idea or business plan. This means you actually write it after you have finished your plan. After the executive summary, start your business plan with a clear and precise problem statement
A problem is always the driver of a business case.
A problem is basically something that causes discomfort to either people, animals, things, structures or our environment. Defining the problem you are solving for your customers is far and away the most critical element of your business plan and crucial for your business success. When we talk about a problem in a business plan, it is actually viewed from a positive perspective. A perspective of how it can be solved. A solution based view. To find out if your idea has a demand, lets dwell on the problem your business idea would solve for the specific customer. Ask yourself these questions and if your answer is yes, you can happily move on. If your answer is no, then you need to do more thinking in dept to analyze your business idea.
- Would your idea solve a specific problem for a customer?
- Would your idea be more efficient for the customer?
- Is your idea better than the way the customer is already solving the specific problem?
Simple standard structure of a business plan
- Executive summary – basically summary the whole business.
- Problem statement – this highlights the situation your product or service will solve. Apart from whatI have explained above, here is a blog where you can get to read more on developing a problem statement.
- Solution – product/service you intend to offer. Here you get to highlight key research information that you have carried out. Research is so important. When you research you want to know more about the market, the potential customers, your competitors.
- Marketing – product, price, promotion & placement. Identify your unique selling value.
- Finance plan – this will include your budget of expenses you estimate to spend, the income streams and how much you forecast to make. Also you can include how you intend to start financing the business for the first 6 months.
- Operations – this is a part in a business plan that many people forget. Operations refer to what you will do daily to make the business work. I advise you to actually develop a kind of milestone with a work plan about your major and sub activities of the next 6 months.
- Scalability – this simply means that you think about the potential opportunity your business can have and how your will expand. It might mean that you open up new locations, sell to new audiences, launch new products etc.
- Team – the uniqueness of your team. This is all about the competence. Why they or if it is just you, why you are the best person to carry out this business.
- Contact details are self explanatory if you want to show someone the plan.
Some more tips for your business plan
Make sure to add a picture in the executive summary, but the picture must show the solution or are creating. If you will show someone, then write the plan in a reader friendly manner. Do not use industrial buzzwords or technical jargons.
3 take away from this blog
- Craft out your executive summary after you have developed your business plan.
- Establish a good problem statement
- Take time to think through each point and write the plan yourself.
Hey, thank you so much for stopping by and reading through to the end. I really appreciate it, because it takes so much to put this together. Hope you liked it. If you did, remember to share this blog on social media. Yes, more free training and videos on this topic will be out this month on YouTube. Not to miss out, subscribe and turn on the notification on Youtube. It would be nice if you follow me on instagram as I share daily strategies and personal fun stuff. I am on facebook as well but to get it all in one place, subscribe to my free newsletter. Drop your comments, questions, feedback beneath using the comment section and I will be happy to answer your questions in my next video or blog.
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