So you have a great business idea, a product or service that you know will make money. The next thing that you need to do is to build a solid business plan. But where to start? Writing a business plan can seem like a very daunting task, but these steps may help you along the way.
Know your competition.
Be prepared to name your competition when it comes to your chosen product or service, you can do this with a business plan template and always be ready to explain what makes you different from and better than each of them.
Know your audience.
Every business owner should know who their target audience is, and if there are multiple audiences that your business can attract. You’ll need to also have a sound understanding of who you are targeting the business plan at when it comes to securing capital and investors. The way you shape your business and tailor it to each audience can change the way people think about your business as a financial opportunity.
Have proof to back up every claim you make.
If you expect to be a leader in your field, you have to say why you think so. You cannot make false claims and make up numbers that sound impressive, you need facts and figures that back up all of your claims. Make sure that you can demonstrate your skills and not make empty promises about your business capabilities.
Document why your idea will work.
Have others done something similar to you that was successful? Know your business, understand your idea, note what works about it and be prepared to defend it. Include variables and results from the research of your idea, show your weaknesses too and use them to build upon why you are adaptable and business savvy.
Be realistic with time and resources.
Being overly optimistic with time and resources is a common error entrepreneurs make. Being realistic is important because it lends credibility to your presentation. Always assume things will take 15 percent longer than you anticipated. Therefore, 20 weeks is now 23 weeks. Make sure to understand the limitations of your business.
Business plans can be tricky, but knowing these steps and following them can help you get the most out of your plan.
