Do you want to start a business or improve the cash flow of your current business? Most people get so worked up in setting a new business or day-to-day worries of their current business that they don’t think twice about the direction they are moving towards. But you cannot run blindly and succeed. Anyone with a successful business will tell you that the first step towards success is to determine a business plan for yourself. If you want to be a great entrepreneur, don’t let yourself flow with the tide. Sit back and analyze your business goals and requirements. First think hard, than act and you will stay on the road to success.
So stop procrastinating, pick up a pen and paper and start writing your business plan. It is not as difficult as most people imagine it to be. Just brush aside your worries and concentrate your mind on your business endeavors. A good business plan has generally well-determined form and content. It can be easily divided into three basic parts which are as follows:
- The concept of your business which is more like your vision statement
- The marketplace which concerns your competitors, and your target audience and customers
- The financial section which circulates around your cash flow
Now you have a basic plan to ponder upon. As you can see that all these three areas are extremely vast, so for a more focused approach, a good business plan is further divided neatly into seven components which are explained below:
1. Executive summary: This is the outline and title page of your business plan which will determine your aspirations, goals, requirements, achievements and basically a summary of your business plan. It should read like an introduction page to an interesting book, giving all the important clues of what is in the book.
2. Business description: As the word ‘business description’ depicts, this area of your plan describes every aspect of your business. Determine what you will do and how you will make profit.
3. Market Strategies: Here you will describe your market, what will be your market shares, what will be the position of your business, how will you price and distribute your goods, what will be the promotional plan and where you will sell.
4. Competitive Analysis: In this section, you will search and determine your competitors, their strengths and weaknesses, their costs and products. You will analyze all your key competitors and formulate strategies to outshine them.
5. Development Plan: Nothing is perfect and can never be, there is always a room for development. Draw out development plans in this section including market development, product development and organizational development.
6. Management Plan: Here you will determine about your day-to-day organizational needs including your staff structure, tasks assigned, your capital requirements, cost of goods and your organizational expenses.
7. Economic and Financial components: In this last section, you will keep a check on your financial and economic data. Keep income statements, cash flow statements and balance statements under this section.
Now that you have your business plan, the next step is to put your plan to action!