Over the last few years, there has been a growing debate on the need for a good business plan. Those against it believe the time you spend writing a plan could be better spent talking to your potential customers about the products you plan to bring to market. However, a business plan is still important to many, especially to investors, and can be used as a solid guide to keep you and your partners on track as you open and expand your business.
A sound business plan is a great way to market yourself to not only potential investors but also your employees as well. A good business plan will allow you to introduce your company and will spell out all the details about your team.
Identify the Problem
A sound business plan will help you identify the problem you are trying to solve and introduce the products that you believe will solve this problem.
Identify Audience and Competition
Before you release your first product, you need to find the proper audience to target in order to sell your products. Without an engaged audience, your products will fall flat on the marketplace and never achieve the success that you hoped. In addition, you must identify any competition already present in the market and any potential competitors as you move forward and create a plan to stand out from these competing companies.
Map for Expansion
Finally, all good business plans include a predefined plan for growth. Investors want to know how you plan to grow the company beyond its initial beginnings, and they want to understand when they will begin to see meaningful returns on their investments. This road map you provide will demonstrate how you plan to expand your new company while maintaining strong revenues and profits in the process.
Create a Model of Your Business
Every great plan will include a basic model of how your business will function. This model will include information on your revenue streams and distribution channels as well highlight how you will market your products to consumers.
While many believe that the need for a sound business plan isn’t significant in today’s modern economy, the fact remains that businesses seeking investors need this plan to help them secure the financing. In addition to a business plan, entrepreneurs should also take the time to meet with the potential customer base for their products to learn how they can improve them before they bring them to market.
So, there is still a place for business plans, because they can help you map out all the details about your company in order to provide the bank or potential investors the information they need to hand over their hard earned money to you. Once you have opened your business, keeping a watchful eye on your business plan will help you stay on point as you work to bring your products to market, and it will also allow you to monitor your progress every step of the way.