When you have a business idea, the first thing you must do is to perform a feasibility study. It’s the process of determining how your product or service will perform on the market. Once you’ve established that there is a market for your idea, the next step is to decide how you’re going to profit from it.
These two steps are the foundation of your business plan. Without them, it will be challenging to create one. But why should you bother with a business plan?
Benefits of Having a Business Plan
A business plan guides your decisions. It ensures that you are sticking to your objectives and goals. Furthermore, it helps you organize your thoughts, ideas, and plan of action into a single document that you can always refer to.
You can also think of a business plan as a run-through of your business. This is the time to assess your business model, layout your strategies, and revisit your feasibility study. Identify any weak points or flaws and improve your plan as necessary.
What You Should Have in Your Business Plan
There is no definite formula to write a winning business plan. However, it might be a good idea to make sure you have the following elements:
- Your value proposition — This is your mission and vision. Your “why” of creating the business
- Your goals — or the milestones you need to achieve, which also support your mission and vision
- Your resources — processes, manpower, and financial investment
- Strategies — how do you plan to launch your business, operate, and manage it
How to Create Your Business Plan
There are two ways to draft a business plan. You can do it by yourself or hire a business consultant to create one for you. If you haven’t done a business plan in the past, it’s best to seek advice from business consultants. They will be able to help you create one that would bring your idea into fruition — and even convince investors to put money into your business.
Creating a business plan is a major undertaking for any entrepreneur. Take your time and make sure you are doing it right.