Starting to write a business plan for most small business owners or entrepreneurs is like jumping into the depths of the ocean without a life jacket. They don’t know what to do first, and the next one is the last one. However, there is a fact about the business plan for starting a small business. You must have a success. If you are starting a business, writing a business plan is usually a successful way to start your business.
Rather than jumping into the 50-page business plan document, the best course of action is to develop a quick internal document called the business action plan. This internal document will help guide you in business development and provide you with the right direction to develop a formal business plan. Here are some steps in a typical action plan:
What is your business; what is the product or service you want to sell?
At first glance, this sounds like an easy task. But think about it. No. You must clearly understand the exact business you want to start before you can start it or write a business plan about it. Do you start selling new traditional businesses with one or two product lines? Are you an entrepreneur who invented a great new invention and are looking for capital to sell and market this invention? Do you provide services to the public? Do you think you can make money with new blogs and blog ideas?
The business action plans for these three potential businesses may look completely different.
The bottom line is, what value do you intend to provide to your consumers? How do you plan to create value in your company?
Who are your customers? How many of them are on the market?
Do you start a physical store?
What type of customers do you expect to draw? If you plan to provide multiple product lines, you will have different types of customers. Write down all your possible customer information. Will you exist online? Customers who are more technical in online shopping.
How many customers are there for your specific product or service? You may need to conduct some market research. If you are in a specific industry, even if your company will not become a public company, you can at least check how many customers enter the market by looking at the S&P industry survey.
If your business is online, Google has many tools to help you determine the number of customers who frequently appear on similar sites.
At first glance, how much money do you need to start a business?
In your business action plan, no one wants you to accurately calculate the amount needed to start your business. However, before you can take any risk, you must have an approximation. First, you want to estimate your start-up costs. Then, you want to set up a business budget worksheet for your daily operations.
When starting a new business, how much money do you need to live?
Most people estimate the cost of living for 12 months. You need to ask yourself if you want to continue working when you start a business, whether you want to save so much money before starting a business, or do you want to try to take out a home equity loan or borrow from family and friends?
What is the goal of your business?
When you start a business, you need to have some ideas about future goals. 6 months after launch, what are your business goals? One year after the release? Have you ever thought about long-term? Five years later? How much do you want to grow? You can start by looking at the SMART goal setting strategy as the first step in establishing business goals.
Before you start to develop some 15-50 pages of business plan, make this business action plan, which will make the plan documents easier to conquer, and it makes more sense for you.