A business plan is a roadmap to help you determine whether your business will be strong from the initial stage itself. To prepare one, you need to plot a business strategy that highlights ‘what’ and’ how’ you are willing to achieve your business goals.
Several companies suffer because their plans aren’t clear or thorough enough to guide their business. Stop wandering around and sit down to create a winning strategy such that you don’t get confused or distracted from your primary aim.
Your business plan should consist of a business description, details of business operation, market research, marketing strategies, evaluation of competitors, financial forecasts and likewise.
Get started to develop a solid business plan. Here are a few reasons why a business plan is a must!
Why do you need a business plan?
A well-thought-out business plan will help you to increase your odds of becoming a successful entrepreneur. Other reasons include:
- identifying if your business has a chance of making a profit
- providing a deep understanding of the market
- determining the estimate of your business costs and the amount required in the future
- acquiring funds from investors and lenders
- beneficial in business valuation
- setting management and employee goals
- facilitating with a revenue estimation
- highlighting potential problems
- managing cash flows, etc.
These are some of the common reasons that determine why you need a business plan in place. If you are planning to get started with your business strategy, then we would advise you to follow the three rules:
Keep it short and precise.
Remember one thing; no one has the time and patience to go through a 50-100 page business plan. A simple mantra is to create a short and concise business plan.
Take it as a tool to start, grow and develop your business. It’s the first impression of your business, and you won’t want your business plan to be shut inside a desk drawer.
Understand your target audience
Your language should be simple and easy to understand even by a layman. Try to simplify technical words and create one keeping in mind your prospective investors.
Avoid using jargon and unfamiliar acronyms. Keep explanations simple by using terms that are easy-to-understand. For technical words, create an appendix at the end for more specifications.
Thorough research is mandatory!
Experts suggest that entrepreneurs should spend twice as much time researching, analysing and evaluating their products or services, market status, objective expertise and competitors.
A perfect business plan is a result of a clear understanding of your business; in a nutshell, it’s your responsibility to know everything about your business. Make a point to perform detailed groundwork by communication with your audience and asking for expert advice.
The American magazine Entrepreneur cited that “A business plan is a blueprint that provides a direction to plan a business’s future and avoid the bumps on the road.”
It is the best motivation every business person should consider if you’re self-funding or bootstrapping your business.
A great business plan is a summation of a strategic and aggressive marketing plan, including your marketing objectives. Every objective should have its own set of goals and tactics which should be clearly understood.
Summing it up!
A great business plan will always convince you that you are on the right path. Get into the process of performing in-depth market research and financial projections to make your planning process more manageable.
Do you need help?
Rakesh Narula & Co. offers valuation services like asset and liquidation valuation, technical due diligence, chartered engineering services and other consulting services. We have the much-needed experience to handle claims for property, process and engineering industries towards material loss as well as loss suffered due to business interruption. Contact us for more!
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