Few things are more daunting than a business plan. Your venture’s success hinges upon it, but that’s the beauty of it. You shouldn’t draft something solely for potential investors. Rather, you should draft it for you, as, once in writing, it will show you whether your idea is a good one, the competition against it, and how to see your dream to reality.
- Understand the Structure
Before you begin, learn the elements of a full-proof document. They are: Analysis, Action Plan, and Projections.
- Research Analysis
Research your industry and its demographic for your analysis section. Make note of who your key competitors are.
- Research Your Action Plan
Research the best way to run the your business. Check out what your competitors do, and seek advice from industry experts.
- Research Your Financials
Research whether your idea is lucrative financially. It won’t do you any good to offer something people aren’t buying.
- Put Your Pen to Paper
Write your research down as the skeleton for your business plan. Don’t worry about it being perfect, just write it all out.
- Analyze Your Industry and Competition
Look at your industry’s demographic and how your competition works within it. Make note of who is buying what from whom and why.
- Establish a Marketing Plan
Take that information and tailor your marketing to your audience. How will you best steal them away from your competition?
- Determine Your Operations
Set up your management, employment, and operating structure based on your Action Plan research. How, and with whom, are you going to make money?
- Determine Your Costs
Budget how much it’s going to cost you to run your business and take everything into consideration, including things like office supplies.
- Set a Profit Goal
Look at how much it will cost you to operate and determine how much you need to generate a profit. Set that goal and tailor your Action Plan to achieve it.
- Narrow it Down… Again
Focus entirely on your demographic. Be obsessive over the small things to make sure you cover them. Your focus should be singular toward your success.
- Be Realistic
You cannot pad anything if you want a full-proof plan. Be conservative in your operating scheme and numbers. You can fine-tune everything later when you know what works.
Writing a full-proof business plan takes time, so set the duration aside. This will be your road map to your success, so don’t cheat yourself out of success by taking short cuts.