A MUST for Constructing Your Own Business Plan – How to Create Your Road Map to Success

A question may arise on your mind. Do I need a business plan? Starting a business is not wrapping up a candy and successfully eating it. Businesses need a guide towards its short-term and long-term goals. Every business MUST have its own business plan. It doesn’t mean that since you will be venturing into small business means you do not need to construct a well-defined plan for your business. This may help you for the following reasons:

First and foremost, the business plan will define and focus your objective using appropriate information and analysis – of what is your business all about, defining your goal, customer analysis – their needs, wants and demands, profound assessment on your direct and indirect competitors and what your marketplace and distribution channels is all about, etc.

Second reason in constructing a business plan is because you can use it as a selling tool in dealing with important relationships with your lenders, investors, etc. Business plan provides a status for your business. Once your lenders and investors see that your listed processes and plan have potential in the market, they would be easily encouraged in negotiating with you since they would perceive a high success rate and high-potential on your business venture.

Third reason for coming up your own business plan is to uncover error and/or weaknesses in your planning process that might help you anticipate future problems and add-ons. While describing and defining your business process and objectives, you would notice some flaws that might be a reason for some troubles in the future. You then, may prepare and generate solutions for errors or change some process and concepts that would eliminate the errors on your business plan. This would also enable you to create strategies that would turn the business weaknesses into strengths. Don’t be stressed with errors and weaknesses, embrace them to enhance your analytical capabilities, decision-making skills and stimulate new ideas.

And, lastly, you can use your plan to elicit advices and suggestions from expert entrepreneurs who had gone far to business and may help you improve your business process, operations, products and/or services and customer relations. They may provide you tips and guides on achieving your short-term and long-term objectives. You must always seek and ask experts since they have experienced a lot of risks, troubles and success. They would always provide you do’s and don’ts on a business venture. They know what they’re talking about but always take precautionary measures, since friends happen to be the worst competitor! Do you agree?

What are then the factors to consider in constructing your business plan? It is critical to assess and analyze your business’ purpose, goals and processes. I have listed topics that you can tailor to you business plan:

  1.  Mission and Vision Statement: You must provide concise and precise statements that provide description of your business, purpose and goals. This will guide and remind each and every individual on you group the purpose and goals of the business. Aside from it, these will also serve as the business overall image and value all you have to do is to create a well-defined mission and vision statement.
  2. The People: The people involved on your group, especially yourself will be the most important ingredient towards your business’ success. Prepare a resume of yourself and one for each person who is involved with you in starting the business. This will serve as a basis that you have the right potential in running a business especially when read by other individuals that will be having a relationship with you such as your lenders. And take note, don’t forget to include your weaknesses, be honest and accept your weaknesses. Experts who will be reading this might help you improve your weaknesses and might even turn your weaknesses to strengths if possible.
  3.  Business Profile: This pertains to the complete definition and description of your business – how you plan to go about it and the factors involved on your business. This includes name of the business, history or background of the business, you as the owner of the business, your contact details, product and/or service offerings, and geographical location of your business.
  4.  Market Assessment: You must never forget your market assessment whenever you venture a business. Market assessment includes your market description, target customers or who will be your customers, factors that affect the market behavior or current state and marketing strategies and programs which includes product – branding, quality, packaging, etc., pricing, place of distribution and promotions or advertisings. The market analysis should be conducted first because it is critical to the success of the business. This will provide you ideas for improvements and product and/or process innovation in order to cater the right products and services to the needs, wants and demands of your consumers. This factor is critical to the success of the business because customers are your priority to be able to stay and survive in the business world since competition is naturally high nowadays. You must not just think of maximizing your profit instead focus on proper care and maintenance of your customers will leave you prosperous.
  5.  Economic Assessment: This business must also contain concerns for the society as well as the effect to economic status where you will become part. Explain and present how your business will be regulated and benefited to the economic condition and how will you be able to be an asset of the government and not just a liability.
  6. Technical Assessment: Technical or production plan must also be prepared ahead of actual launching of production to decide, to coordinate, to control and to evaluate matters relative to the total production process so that the resulting products and/or services are produced according to the specifications demanded – both in quality, quantity, and in terms of minimum cost and appropriate timing. This also considers the purchasing, handling, and storage plan of raw-materials, storage of semi-finished and finished products for tangible goods and handling of products prior to sales or shipment to customers. Proper planning will leave you no wastes and troubles.
  7.  Financial Assessment: Include a one-year cash-flow analysis that will incorporate your capital requirements. This will help and show you whenever you may have troubles in investing on your business and if you must add or subtract some materials or expenditures that are unnecessary or least important for you to cater more important matters. On this factor, you must include a damage-control plan. All business may experience episodes of distress. Survival to this may depend on how well you cope with them. You may avoid or lessen your distress through planning for a 35% loss of sales, anticipate and prepare for a disastrous incidents and plan for product obsolescence through continuous research for product and/or process innovation.  

Great isn’t it? I hope I was able to provide you sufficient details in coming up your own business plan and how it benefits you. I say this would really be critical for every business ventures. Business plan will always guide and remind you for the things you must prepare and do. Engaging into business is not as easy as you thought. Well-focused and commitment would be important for a business survival. For comments and suggestions please share us your thoughts below. Thanks for reading!

 

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4 Responses to “A MUST for Constructing Your Own Business Plan – How to Create Your Road Map to Success”

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