Are you someone with a business vision who would love to take that initial step but has no clue as to where to begin?
Is it impossible for you to come up with a concise business plan because the Internet is full of tips that will make you do it and succeed? Relax, Sterneder will take you by the hand and lead you through every bit of your way until you become a real entrepreneur.
For every startup, having a strong and well formulated business plan is very important. It provides a roadmap indicating what you hope to achieve, your strategies for achieving them and financial projections for the business going forward.
Although essential in making sense of where you are headed to, this paper may also serve some other purposes as far as the investment opportunity is concerned including being a guide for deciding on what is best for the company among other things.
By following Sterneder’s comprehensive manual, you will understand every vital part that should be in place for a good business plan including how to customize it in order to meet your peculiar requirements.
Step 1: Identify Your Market
For one to draft a business plan, he or she has to know the customers first. What are your thoughts on the people who will be interested in purchasing your product?
Investigate about their age, gender, income, among other factors, and also try to determine what they usually do so that you can gather as much relevant information about them as possible.
With this kind of information at your disposal, you will not have problems in formulating marketing strategies that target certain customers and also understanding their problems better.
Step 2: Create a Company Description
Your company should be briefly described in the initial part of a business plan. It should contain the name, location, history, mission statement, vision statement and products or services offered.
Be concise but thorough in explaining this background information as it sets the stage for the rest of your plan.
Step 3: Develop a Product/Service Lineup
At this stage, explain comprehensively the type of products or services that you will offer to your target market. What is special about them? What will people gain from them?
How do you plan on distinguishing yourself from other industry players? It is crucial to explicitly state the product offering to determine your rightful place in the market.
Step 4: Conduct Market Analysis
Once you have identified your target market and understood your product, it is imperative to evaluate the overall business environment before venturing into it.
In such an analysis, we should consider the capabilities and vulnerabilities of rivals, opportunities which may be available in the environment, on the side of business, but also the risks posed to it and factors blocking new entrants into industry.
Step 5: Define Your Business Structure
Provide a brief description of your business design in this section. Do you plan to operate as a sole proprietorship, partnership or corporation? What will be the duties of every team member? Who will have the final say?
It might be wise to seek advice from legal professionals concerning the selection of the right structure for you in meeting your objectives over a long period.
Step 6: Create a Sales & Marketing Strategy
Having comprehensively analyzed the industry and market, the next step is devising tactics for marketing and selling what you have to offer.
In its formulation, take into account both the conventional elements of marketing mix such as advertisements or public relations and non-standard ones– for example, marketing in social networks. Be sure that you adapt your strategy to suit your target customers.
Step 7: Develop an Operations Plan
This section provides a summary of how your business will run on a daily basis.
It outlines where the materials for production will come from, the stock control methods, type of production process, as well as staffing levels and requirements.
You should outline potential challenges that may arise and offer realistic solutions for them.
Step 8: Craft Your Financial Projections
Among all the parts that make up a business plan, the financial projections are very important.
It shows the investors the projected return of their money and also gives advice on how to deal with cash in the first phase or beginning of your business.
This section should contain forecasted income statements, balance sheets as well as cash flow statements spanning up to three years in business.
Step 9: Include Supporting Documents
For your business plan to be believed, you must attach some other documents alongside it; for example market research reports, product catalogs, financial statements and legal agreements.
With such documents included, the potential investors will be able to get a clear view of the operations of your business and its viability.
Step 10: Review & Revise
Review your business plan once you are through with all the sections to ensure that it is accurate and consistent.
Seek opinions from experienced people in the field and make use of them in refining your document for the ultimate presentation to any possible capital providers.
Step 11: Implement Your Plan
Well done on coming up with such a good business plan! You should now implement what you have planned out and also remain flexible and make changes that may be necessary but never lose sight of your end goal.
Step 12: Continuously Review and Update
It is important to remember that a business plan is not static but rather dynamic since the company changes with time.
Ensure that you look into and make any necessary changes every now and then to cater for changing market trends, emergence of fresh opportunities or issues that may come on your way.
The Bottom Line
In summary, even though it may be challenging to come up with a thorough business plan, following Sterneder’s systematic blueprint makes the process easier.
Always remember who you are and listen to what others have to say because change might be needed.
With persistence and hard work, the business plan you created will be the basis of a successful business. Good luck in your venture!
