Business Planning Leads to Success
Business Planning Leads to Success. A business plan is very critical to your business. It is a roadmap on what your business does I was going to do it and who is going to do it.
Before you go through the steps you should ask yourself these questions; are we ready to start a business plan to expand the business? What makes our company different? Are we in a niche? What’s your differentiator? What solution do we provide that makes a difference? What are our costs to breakeven and our margins and what does it take to make a profit.
Here are some steps that you should take to create your business plan:
Step 1: Executive summary, in the executive summary you should define the sector is what products or services you’re selling, who’s your target audience, what does your industry look like, and your swot analysis strengths weaknesses opportunities threats, and who are the owners and stakeholders.
Step 3: Describe your Product or Service, you should be describing what are you actually selling or producing. How much does it cost to make the product. What is the packaging and the marketing costs.
Step 4: Marketing plan, who are your customers, who is the competition, what’s your niche, how will you distribute your advertising; online and off-line sales strategies and who will market it and who will be the face of the business.
Step 6: Organizational Chart, is another critical step who runs a business who reports to who what is the hierarchy and who are the stakeholders.
Step 7: Financial plan is one of the most important part of the business plan this should include a profit and loss projection and analysis a breakeven projection analysis and very importantly cash flow analysis.
Step 8: The final step can include items like attachments for resumes, profiles of business owners and founders and organizational profiles of employees. Also successes of the business via awards and media.
In summary business plan is very essential to accompany’s success. 7 out of 10 businesses fail, so when starting a new business you need to have a plan. A plan to get you from point A to B profitably and successfully. The reason that 70% of businesses fail, is because they did not have a plan, they had no research, they had no niche, they did not understand the breakeven, cash flow or profit margin‘s. Essentially you need to know how much is going to take to make a profit, pay your bills and get you on the road to profitability and growth.