Starting a new business is something that should be planned. Regardless of the industry’s projected size, it should start from a business plan—a written document that describes the company in detail, alongside its goals and objectives. It is a roadmap for the firm from marketing, financial, and operational standpoints.
But if you’re a budding business owner, where do you start? First, you would need a plan on how to get off the ground and attract future investors. A short write-up of your ways to achieve the goal should be alright. However, you should have a clear vision of where you want your company to go.
1. Include a Great Summary
A summary acts as the introduction of your business. It’s a way to lay out your plans for the company and what the customers should expect from them. In summary, make sure to highlight the things you would want to discuss further in the rest of the plan.
Keep in mind that an excellent executive summary is compelling—it should contain the company’s mission statement, along with a short description of its products and services. It might also be a great idea to explain why you’re starting the company.
2. Describe the Future Company
Aside from the summary, you should provide a distinct description of the company in a business plan. The report should provide critical information about the business, its goals, and target customers. It’s essential to explain why your company is better than its competitors and how it can leverage from them. It’s also best to identify how your company can fill a gap or a need in the marketplace—making it a more vital service in the industry.
Lastly, determine how your company exceeds other competitors. It can be anything from pricing, deals, and promos that come with it.
3. Provide Market Analysis
Although it’s crucial to have goals and objectives for a company, it’s also essential to have a clear understanding of the people who will support your business—the customers. Some businesses dive in, head first, without identifying their chosen market. With some research, you can determine which things work best for the people you serve.
In effect, you can turn more potential customers into secure sales or even long-term customers in the future. Before starting a business, get to know the people you’ll serve and adjust your next move accordingly.
4. Breakdown of Products and Services
After giving an overview of your company, it’s now time to go a bit in-depth about your plans. Next, include a breakdown of your possible products and services offered. The “breakdown” should give a fuller description of the products you might be manufacturing or selling, how long they can last, or how you will meet the assumed demand.
The breakdown of products and services is also a great section to mention your suppliers, what help they can provide, and how much it will cost to manufacture the products. It should also include the projected income per product, assuming that the pricing has been decided. If you have secured patents or copyrights, then those things should be mentioned in this section too.
5. Financial Projections
The final section breaks down the financial goals and expectations set based on the market research. You’ll have to report the anticipated revenue for the first 12 months, starting from the company launch. If possible, it should also include your annual projected earnings for the second, third, fourth, and fifth years of business.
Curating a business plan shouldn’t be challenging. However, it should contain information based on research and projections. Every company might have a business plan layout. But the factors listed above should be at least a part of the business plan you’ll be working on. Keep in mind that you should provide a clear yet concise business plan to articulate your goals from the beginning.
Here at Head Start Biz Solutions, we practice what we recommend. We provide tax services around Virginia Beach and the surrounding areas for people who need help in managing their businesses. Check out our website to learn more.