Do you intend to start a business; small or large? Or you intend to expand your existing business? Guess what, all these will just be a dream yet to be explored without a strong business plan. As the old adage says: “he who fails to plan, plans to fail”, you need a business plan to succeed in business. However, who starts a venture knowing it head towards failure? I guess no one will.
A business planning is the art of crafting strategies and tactics necessary to achieve certain milestones and also to make certain forecasts in line with the corporate. To have your business plan fly some tips are necessary to be known and digested.
- Know your competitors: Prepare to name and know your competitors, search for what makes them different and how well to beat them in the market. However, do not belittle your competitors to avoid being taken by surprises.
- Know your audience: As an entrepreneur, you can have different business plan for different business purposes. One can be for seeking funds, another for wooing investors and the likes. However, knowing and understanding your audience will give you a step ahead in your business planning.
- Be Factual about your claims: While writing your business plan, if you claim that the business idea will take the market by storm then be prepared to provide facts. Mere words will not go a long way.
- Be conservative about financial estimates and projections: Make sure your financial projections are more conservative, if you think your business idea can capture 20 percent of the market in the first year indicates the reasons for the thoughts.
- Be realistic with time and resources: Do not be like the happy-go-lucky entrepreneurs who are overly optimistic with time and resources. Being realistic means credibility which is a good trait for a sound business minded individual.
- Engage a strong management team: The builders determine how the structure of the building will look. Make sure your team has good credentials and expertise. Ensure they have the needed skills to push the venture into prosperity.
- Discuss Pay-out options for the investors: Investors are not charity giver; they want to know when they can get their money back and at what rate of returns. Therefore, provide a brief description of options for investors or at least mention you are ready to discuss options with any serious prospect.
With all these, your business idea is ready to take the great fly to success! Executing a great business idea comes with a price and planning is the first price that needs to be paid. The above are all about tips to have a great business plan, how about tips that make a great business idea fall down flat? Next we will go through ‘the don’ts of a business plan’. Stay tuned!
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