12 Questions You Need To Answer In Order To Create A Perfect Business Plan7:24 AM
The process of creating and writing a perfect business plan is as valuable as the end product itsel...
The process of creating and writing a perfect business plan is as valuable as the end product itself. A document that will give priorities, context and common sense, everything you need to start your business. Create your perfect business plan by answering these twelve questions.
- What is your idea?
- How does your idea she brings a need in a market?
- Which business model is best for you?
- What is so different in what you are offering?
- What is the market size and what the size of your growth?
- What Will be your role?
- Who is your perfect team in your business plan?
- How customers will buy, and how much will they pay?
- How much money do you need and how much will you earn?
- Where does the money to start?
- How will you measure success?
- What are your main stages?
What is your idea?In simple words, write what your idea. If you can not explain the essence of your idea quickly and easily, keep working on it until you can. The complicated descriptions and with too much jargon are real turnoffs. Anyone listening should be able to say immediately, "Oh, I understand."
Your description should highlight the qualities that distinguish your idea.
How your idea she brings a need in a market?This is where you get to explore the potential of your new idea. There are two types of applications in a market, "want" and "need."
A business that fills a need is still more promising than the one that meets a "want". In the case of a market need, there are existing applications "repressed" and creating awareness is all that is required to catalyze the sales of your offer. The end user literally pulls your product or service through the system to satisfy his need.
Also Read: A Successful Business Plan And a Philosophy
In the case of a market "want", you will be required to "push" your product to the consumers, which generally requires advertising campaigns and expensive marketing to encourage and influence the sale. There, various degrees of "want" on the market so try to get an idea of the extent to which the market needs your product or service. Obviously, the more the "will" approach "need" better.
The basic food and housing are examples of "need" while goods like jewelry, video games, and gourmet food are examples of market "want".
Which business model is best for you?Do some research in your town or on the Internet. Investigate the business models that other people have used when selling a similar product or service.
Choose a legal status that best fits your plan and provides the most direct route to success with the greatest profit potential. The more your business model is clear, the easier it will determine your revenue model. The model you choose can dramatically change when, how, and in what form you generate income.
Also read: 10 Tips For Writing An Effective Business Plan
What is so different in what you are offering?To answer this question, repeat after me: research, research, research! You can almost be certain that someone will come to you and say, "Hey, did you know that XYZ Corp. does exactly what you do? "
If you're ready, you'll be able to answer, "Yes, I know this company, but this is what makes us different ...". You must be master in your field, an expert.
Also Read: 5 Tips To Startup A Social Enterprise
What is the market size and what the size of your growth?Explore the market and understand the growth potential is essential for your idea. For this, you need to understand the demographics of people in your target market. For your offer, distill these people into categories of "low-need", "need to average" and "high need". People in the top category will be central to your marketing and sales efforts. Once you have entered this inner circle, you can grow by expanding your offerings, your marketing and sales efforts to include people with an average level of need and so on.
Also Read: 5 Startup Ideas of Online Business
To know the degree of need that may exist for what you offer, try to understand what market is easier to penetrate. This market is growing? If so, how much? Can you determine if the market is already saturated, mature, or declining? Much of the information you need can be easily collected on the Internet. The information you will find are free of charge in some cases, but there are also online studies that have been performed by large consulting firms. When a company truly understands its markets, it can attack them methodically.
Study your growth potential will give you an idea of the size of your business, and will be able to help you set goals for the deployment of new products.
What Will be your role?To answer this question, consider all the activities that you enjoy doing and the types of skills you enjoy using. You may realize for the first time, you do not want to go any (e) alone (e) in this endeavor. You may want a different role and allow certain tasks to a partner or key employee.
If you take the solo route or you have determined that you will build a team, this next tip is crucial: Make a list of tasks and responsibilities. Remember, it is very easy in a company to become overwhelmed by all the work that accumulates. Allow yourself enough space to enjoy your activity.
Also read: 3 Secrets to Creating a Better Marketing Plan
By writing your own job description, you can free yourself of tasks that are not the best use of your time. Be true to yourself, your business will suffer if you take roles that do not benefit or do not match your interests and skills.
Who is your perfect team in your business plan?This is where thinking about your team comes in. One of the key factors that separate your company from the competition will be the people with whom you choose to work. Make a serious examination of the team you choose to start and run your business. Your success depends largely on them.
Your business plan is the place to sort your areas of expertise. Maybe you have a good idea in a market where you have not great knowledge. In a good business plan, investors will want to see you and your team have a thorough understanding of the idea.
If you are not going to hire a lot of people at the beginning, you should still write a list of people you would like to hire. Finally, if you go alone, do not forget to write, how you plan to entrust the work you can not do yourself.
How customers buy, and how much will they pay?Write in detail how you plan to put your product or service on the market. This includes how you will make your product and how you deliver it. Will it be sold on the Internet or in your own store shelves?
Remember that you must have a clear and achievable plan to put in front of your customers what you sell.
And what about the price? It is an essential element of success. Too high a price and no one will buy your product. Too low a price and you could leave money on the table, or worse, you might not make any money at all.
Think about the price that your customer would pay for the product and determine if you can offer a customer service better than your competitors. Never forget who pays the bills: your customers.
How much money do you need and how much will you earn?The two key ingredients here are the expenses necessary to turn your idea into a sustainable business and revenue that the company generates. Start with how much you'll spend on things like facilities (either a retail store or a home office), product development, travel, inventory, office supplies, marketing, and your employees' wages. Be thorough. Talk to others in your field, join the entrepreneurial networking groups in your industry, and dig to find out how much it cost them to start.
Also read: 10 Important Tips To Create a Strong Startup
This is when you begin to see how your idea will turn into real money. While this is exciting, do not plan exotic recipes. You run to failure if you do.
First, you will feel less successful if you do not meet these objectives at the end of the year. Second, exaggerated revenue projections may lead to hiring too many people or the constitution of huge stocks that you can not sell.
Third, if you base the valuation of your company on that income and do not meet these goals, you will seriously damage your credibility with investors for a future project.
Our advice: Promise less and do more. You will feel like a star if you exceed your revenue projections and you will have more money to reinvest in the future of your business.
Where does the money to start?
In answering the question 9, you will learn two most important things you need to know when you answer to question No. 10. You'll learn how much money you need and how much you think you will win . Now start thinking about where to get the capital to put your enterprise. See example on this site crowdfunding Kiosk to invest
If you plan to get your money by venture capital firms, determine a value for your business. Very often, as in the real estate market, the valuation of your business will be strongly influenced by the value of comparable companies rewarding at a similar stage of development with similar characteristics.
Also read: 5 Key Steps Toward Starting Your Own Business
How will you measure success?For many people, making money is the great measure of success. But while financial accomplishments will be fundamental to the viability of your business, there is more to gain from running a business than just making money.
It is important to define what success means to you. As part of the business planning process, consider how you define success.
What are your main stages?Create a chart that shows the dates of when you expect to achieve milestones as your business grows.
Have a visual map of what needs to happen and when, to stay focused on priorities. Although many times, your rough estimates of a major step will be wrong, these steps are important because they will keep you accountable, while you evaluate your progress. If you do not reach your milestones, this card will give you a real perspective on your performance, resources and determination you need to get back on track. You can decide on a "Plan B" and a change of mentality is needed. But without this table with the steps, you never know if you need to move or respond until it's too late.
ConclusionOnce you've answered these questions, you should be prepared to draft a real business plan.
Remember that the most important audience for a business plan, it's YOU! You will have to be accountable to all statements, claims, statistics and facts within it.
You can also use your business plan as a tool to attract the interest of investors, potential employees and strategic partners.
Its your turn to say anything about your business plan, please use comment section to give us feedback on business plan writing.