How to Make a Business Plan: 6 Important Points

Posted Jun 07, 2019

If you decide to start your own business, then you cannot do it without a business plan. A business plan is something that will help you carry out your business idea. We picked up 6 important points that you should pay attention to when creating it.

1. General information

Before proceeding to budget planning and sales strategies, you first need to get a general understanding of the future business. You must analyze all the details and pitfalls that are best known in advance.

What will you do? What is your goal? Do you need business partners? Do you need a special room or will you work online? What is necessary for doing business? In the beginning, you may feel a little lost. It's quite normal. Just take a notebook and pen, look for the information you need and start recording everything you need.

2. Goods and services

The business plan should include a description of the products or services that you intend to provide to your customers. A very effective method is to categorize your products. For example, if you want to engage in design, classify your services by type: weddings, corporate parties, holidays, and so on.

3. Price and marketing plan

Once you have categorized your products or services, you need to determine their value. What will you be guided by when setting your price? Find out what the average cost of your product and how much money potential customers are willing to give for it.

Next, you should decide how you will attract customers. In the marketing plan, you need to include a detailed description of the strategies and tactics that you are going to follow.

Social networks - one of the most profitable modern platforms for the advertising business. You can also advertise your product on websites and blogs.

4. Market analysis

Market analysis is the most important component of a business plan. To attract the right customers, you need to be aware of their interests and needs. Think about who your potential customers will be. You can also turn to services which will provide proper business consulting and will help you in business planning.

Find out if the services and products that you intend to offer are popular. Try to determine in advance whether your business has a development perspective.

5. Financial plan

This section includes all questions of financial support for your business. Calculate the amount that you need in the initial and subsequent stages. Consider fixed costs such as supplies, purchases, salaries, contractor services, taxes, and so on.

Try to find investors and offer favorable conditions for both parties. Remember that a deliberately unprofitable business will not invest money. Therefore, clearly describe what benefits investors can get.

6. Competitive Analysis

In business, competitors lurk at every corner. Therefore it is necessary to collect detailed information about them. Find out their strengths and weaknesses. What is their advantage? What can they offer to a client that you don’t have? What do you win?

Think about what is the significant difference between you and your competitors. Maybe your products are more qualitative? Do you specialize in something exceptional and rare? Are you more experienced? Determine how you can get around the rest.