How can I prepare a business plan?
If you’re planning to start a new business in 2017, having a well-designed business plan is essential for attracting investors or other sources of capital. Moreover, creating a business plan is an essential first step in launching a new venture. This document establishes what your business does, where it plans to go, and how it plans to get there. In other words, it’s your roadmap to success.
In short, a well-crafted business plan will include a description of the business and the leadership team, the target market, what sets you apart from the competition, and last but not least, financial projections. These are all key considerations for potential investors.
Company Description
The description of your company should not only provide information on what the business does, but how it is different from other businesses in your space, and what the target market is.
The Business Team
Business teams are usually comprised of people with varying skill sets. Some have expertise in product development or a history of providing a particular service, others may have executive capabilities to run the operation while others have a proven track record of delivering goods or services to the market. It is vital to have a well-rounded team.
Market Analysis
It is crucial to do your due diligence on the industry, the market, and competitors and demonstrate there is a need for what you plan to sell, and that you will attract customers.
The Competition
The road to success means having a competitive advantage. Your product or service must be unique, or failing that, your marketing plan will differentiate you from your competitors.
Financial Projections
If your goal is to obtain funding, you must be able to provide financial projections of your profit and losses during the first few years, and how you intend to grow revenues. This estimate provides both investors and the leadership team with realistic goals you intend to achieve.
The Takeaway
In the end, a business plan should be a three-to-five-year projection of where you intend to take your venture, that also considers risks, barriers to entry, and how you will respond to these challenges. By having a well-thought-out plan, your investors will have confidence in knowing that you are prepared and committed to achieving success. Before launching your venture, you are well advised to engage the services of an experienced business law attorney.