Business Plans: Essential Tips to Help You SucceedPosted by Factor Funding Co. on May 3, 2013
Writing a business plan is an essential step in getting your business off the ground. A well-written business plan can be the key to helping you get venture capitalists and financial institutions to provide you with business capital. What are some of the important components of a professional business plan? How can you compose your business plan in a way that describes your overall goals and strategy? Here are a few tips for writing your business plan.
Clearly State Your Company Vision
The most important part of your business plan is your corporate vision. This is usually one of the first pages in the plan and can either attract or repel a potential investor. It is essential that you state your vision clearly and positively. Take the time to set specific short-term goals and long-term objectives for your company. Think about where you see your company in the next year, five years, and 10 years. Express exactly what you want your company to be and what you want to accomplish.
Analyze the Market and Your Competition
Many entrepreneurial ventures fail because business owners neglect to honestly evaluate the competition they'll face and the best way to carve out a niche in the marketplace. No matter how clear your corporate vision is, your business plan is not complete if you don't include well-prepared research about the other companies that have established themselves in the same space. A good way to do this is to find about the rates that your competitors charge for similar products or services and then do research about how you can either undercut these prices or reduce your overhead so as to grab a piece of the available market share.
Outline Your Plans to Develop and Structure Your Company
After you research your target market, outline how you intend to establish and grow your business. For example, if you plan to begin with a small demographic and then work on attracting other target audiences, explain how you expect to accomplish that. Detail your plans to adapt to changing market conditions such as a slowdown in revenue or an unexpected increase in costs. These plans show your prospective investors that you have considered the possible obstacles that you'll face and that you are prepared to handle them.
Before you open your business, put a lot of time and effort into composing your business plan. By using the tips above, you'll come up with a business plan that is both convincing and authoritative.