Writing a business plan is a crucial step for any business looking to launch or expand. However, coming up with the perfect plan is easier said than done. To help make the process easier, here are some important questions that every business plan should answer.
What Is the Business Goal?
The first and most important question for any business plan should be the goal of the business. What is the purpose of the business? Who are the target customers and what objectives should the business accomplish? With a clear set of goals in place, the business can then make use of the rest of the plan to identify strategies and resources needed to get there.
What Products or Services Will the Business Offer?
The next step is to identify what products or services the business will be offering. This doesn’t just include the individual items, but also any potential modifications or customizations that customers might request. The more details that can be worked out ahead of time, the more likely the business will be prepared to accommodate any needs that customers may have.
Who Is the Target Market?
Knowing who the target market is an equally important step. This is the group of people that will be most interested in the business’s offerings and the group that the business should focus their efforts on impressing. This could be a certain demographic, such as single mothers aged 25-35, or people in a certain geographic region. It’s important to know the target market because this will determine the kinds of marketing and advertising campaigns that the business should employ.
What Differentiates the Business From the Competition?
The goal should be for the business to be the best in the industry. With that in mind, the business plan should take some time to discuss how the business is different than its competitors. What makes the products offered stand out? What advantages does the company provide that make it a better choice than its competitors?
What Resources Are Needed to Reach the Goals?
In order to reach the goals outlined earlier, the business needs to have the right resources in place. This could include financial capital, human resources, equipment, or whatever else may be required to get the business up and running. This section should identify exactly how much of each resource is needed, how it will be obtained, and what the cost implications are for each.
What Strategies Will Be Used to Promote the Business?
How a business gets the word out about its offerings is just as important as the products themselves. There are a variety of ways to spread the word, such as advertising, social media marketing, email campaigns, and more. This section should explain in detail each of the strategies and how the business plans to use them to reach its target market and distinguish itself from the competition.
What Are the Financial Projections?
A business plan wouldn’t be complete without an honest look at the potential financial returns. This section should provide as much detail as possible including potential revenues, costs, profits, and expenses. The more precise the numbers, the better. This will also give investors a better idea of how capable the business is of turning a profit and how much of a return they can expect on their investment.
What Are the Risk Factors?
No business can guarantee success, so it’s important to acknowledge the potential risks and how they will be managed. This could include anything from changes in the market, potential legal issues, possible financial setbacks, etc. This will prove to potential investors and banks that the business is aware of the risks and has a plan to mitigate them.
A business plan should be an essential part of any business, providing not only an outline for reaching the desired goals but also a way to attract investors and loans. Answering questions like the ones outlined above will allow businesses to craft a plan that clearly spells out objectives, strategies, and potential risks/rewards, making it easier for them to stand out and get the funding they need to get their business off the ground.
