When applying for a job, the first thing that comes to mind is to prepare a carefully-crafted resume and cover letter. With these documents, you hope to be the chosen candidate for the job position you apply for. Preparing a business plan works in the same way. Having a carefully-crafted business plan is the most essential step when you want to start up a business entity and get noticed by investors.Creating a business plan is an interesting process because it allows you to show your creativity and preparedness for the upcoming challenge of starting a business venture. There are various business plan examples you can use in the creation of your own business plan. It depends on the type of industry you are interested in opening a business entity in. In this article, we will explain the five most important components when creating a business plan:
1. Make a SWOT analysis
Step number one is to prepare a SWOT analysis. SWOT is an analysis of the strengths, weaknesses, opportunities, and threats in running a business. This type of analysis is helpful since it is the starting point for the creation of a successful business plan. By making this analysis, you will have a clear idea of what to write down in the business plan and where you want to focus your attention during the initial stages of your business.
2. Executive summary
The summary is the essential component in the creation process because you are clearly showing your idea and explaining what makes your business unique. This way, the reader will become excited about the topic and will be aware of what follows further on. Sometimes, the reader decides to read just the summary and nothing else from your business plan.
That is why the summary is the key component that leads to success. Make sure to keep the summary short and businesslike. In the summary, you have to include a couple of elements, such as the business concept, financial features, marketing strategy, and your goals, which are among the most essential ones. A well-prepared summary will make your reader take action and get invested in your business.
3. Business description
When you describe your business, you are actually describing the industry you are working in. Whenever you describe the industry, you have to explain the present attributes as well as the future expectations of that particular industry. Always make sure to add well-proven data, data from reliable sources, and add references where you found this information. This will attract investors and you will be considered as a trustworthy company.
Describing the business won't be reliable if you don't mention the structure. By structure, we mean the type of service you offer. Is it retail, health, marketing, wholesale or maybe a service-oriented business? Additionally, you have to point out if your business is new or an already existing one, as well as if it is a partnership, corporation, or maybe, sole proprietorship. Always be truthful and success is guaranteed.
4. Market analysis
You have to make an in-depth analysis of the market where you gain data for the process of pricing, promotion of the entity, and distribution. This way, you will give your company the chance to become profitable in a short period of time and show better results than the rest of the competition. Moreover, it will give you a glimpse into the company’s growth and projections of what you can expect in the future.
The next stop for analysis is your target audience. Based on the industry you are in and the services you offer, you can easily find your target group. Once you know your audience, it will be easier to plan your marketing strategy and promotional activities for the future.
5. Establish the price
Pricing of the product or service you offer is fundamental to showcasing your marketing power. The price you set has to cover all monthly expenses, show competitiveness in order to assure sales, and leave you with a comfortable fund for emergencies. Along the way, you will have to pay attention to the constant market changes and the ups and downs the market presents, so make sure you write these projections down in your business plan. This way, you will show that you are open-minded and ready for any future market changes that may occur.
Any successful business starts with a well-developed business plan. This means you must be familiar with every trick in the business books. The first rule is to create a detailed business plan that includes all of the necessary components, such as projected sales, marketing analysis, and prices for the products and services you offer.