How to Prepare a Business Plan
Research
The first thing you should do is write up a complete description of your business idea. If your business includes a product you should create a model that can be used as reference. No matter what the idea you should price it accordingly. Research the market by speaking with colleagues, mentors, and even future competitors. Here are the questions you should ask.
1. Is there a need for your product or service?
2. Has someone already created a version of your idea? If so, how can you make it better?
3. How do they think your product will do in the market?
Never fully disclose your plans and always ask they keep strict confidentiality. Local libraries are also great for researching copyrights, market trends, and legal matters. Look for State and Government publications, as well as materials published by trade associations. Often these materials are in the resource or reference section of the library.
When coming out with a new idea, it may seem like every thing’s already been thought of. In a way, it’s true; everything has been thought of. But not every person has what it takes to succeed with an entrepreneurial venture. Nothing is wrong with reproducing another’s entrepreneurial success if the market is strong enough. What negatives about their product can you make better? Look for something unique about your product or service to promote and market.
You’re almost ready to start working on your business plan but there are several more things you need to do first. When taking the first steps of creating your own business it is important to weigh all of the pros and cons. Are there any negatives that may stop you from reaching your goals? Can you get the appropriate funds for start up? Are you the entrepreneurial type? Your business plan should not only be informative, but help you achieve entrepreneurial success.
Here are some things to consider when formulating your business plan:
Goals and Planning
The first thing you should do is establish specifically what you want to do. Your goals should be realistic so that you can actually achieve the level of sales and income that you desire. Your goals at first may be general but they will be a good starting point. Just having the best product isn’t enough, how do you plan to do it? Break your goals down into specific targets and determine how long it will take you to reach them. Keep in mind both your long term and short term goals as you write down your objectives.
When it comes to resources there are two sides to the story. First you need to determine what resources you have at your disposal. What skills do you have to contribute to the business? Include the talents of your staff as well if you have one. Show the need for your product or service and how it creates its own market. No matter how experienced you and your team of professionals are, it is likely you will still need some help with certain needs later on. Identify these needs now whether you need a tax lawyer, marketing manager, or personal assistant. Concentrate strictly on what you need and nothing else until you have your ideas focused and clear.
Preparing Your Business Plan
Now that you have a general idea of what you want to do, and how you intend to reach your goals you are ready to prepare your business plan. You can either do the preparation yourself or your can hire a writer to write your plan for you. Either way, during the actual writing and phrasing of the business plan you should be present so you can approve or disapprove. You can also purchase software and general business plan outlines from many different sources. By using your collection of information on your business venture it will be easy as pie to create the right business plan. Good luck!
