Our economy depends on small businesses because they employ a huge number of people and they purchase finished goods from industrial firms. Unfortunately, small businesses are struggling to survive under the prevailing economic climate, which is harsh and unpredictable. It is even harder for business start-ups to survive but their fortunes can change easily if they develop a structured business plan. This business plan should be holistic, realistic and visionary. In other words, it needs to take into account various factors that affect the viability of a business. Here is a simple guide to professional business plans that takes considers all of these pertinent factors.
- The Executive Summary
Plans for businesses cannot succeed without an executive summary that summarizes your entire business for the sake of your investors among other stakeholders. For example, you need a vision and mission in your executive summary so that everyone understands your long-term goals. A clear description of the services and goods you intend to offer also helps people to understand your business. Finally, you should include highlights of possible returns from your business over a certain period so that actual figures inform the debate on the viability of your business as opposed to subjective thought from a number of individuals.
- Marketing Strategy
Many businesses fail because they lack an effective marketing strategy even when they have a wonderful product. Every entrepreneur should realize that entering a specific market would always lead to resistance from people who already operate in that market. Carry out a comprehensive analysis on the strengths and weaknesses of your competitors as you prepare to thwart this kind of resistance. You can then develop a marketing strategy that takes advantage of the weaknesses your competitors have while highlighting your own strengths at the same time. For example, focus your marketing strategy on the reliability of your services if your competitors offer unreliable services to their customers.
- Prepare Financial Projections
Entrepreneurs take risks and some of them might incur huge losses simply because they did not prepare financial projections for their start-ups. This causes them to spend more money than they really have because they overestimate their potential income. Doing so leaves them in a state of perpetual debt if the income from their businesses is not forthcoming. Always prepare a balance sheet, an income statement as well as a cash flow statement before you kick off your business. Operate within the limits of a budget and adjust your current spending if you run short of cash. Include these possible adjustments in your business plan as contingencies if your cash runs out.
- Prepare a Management Structure
Every organization even a small business requires a proper management structure that distributes responsibilities to everyone hired by the organization. Include everyone that will help you run this business in your management structure. For example, family members who help you run the business are part of your staff and as such, you should include them in the overall labour count in your business plan. Plans for businesses should also have a hierarchical management structure so that everyone within the organization knows who to go to when they have a problem. Go on. Create plans for businesses using these ideas and you will surely succeed.
- The Executive Summary
Plans for businesses cannot succeed without an executive summary that summarizes your entire business for the sake of your investors among other stakeholders. For example, you need a vision and mission in your executive summary so that everyone understands your long-term goals. A clear description of the services and goods you intend to offer also helps people to understand your business. Finally, you should include highlights of possible returns from your business over a certain period so that actual figures inform the debate on the viability of your business as opposed to subjective thought from a number of individuals.
- Marketing Strategy
Many businesses fail because they lack an effective marketing strategy even when they have a wonderful product. Every entrepreneur should realize that entering a specific market would always lead to resistance from people who already operate in that market. Carry out a comprehensive analysis on the strengths and weaknesses of your competitors as you prepare to thwart this kind of resistance. You can then develop a marketing strategy that takes advantage of the weaknesses your competitors have while highlighting your own strengths at the same time. For example, focus your marketing strategy on the reliability of your services if your competitors offer unreliable services to their customers.
- Prepare Financial Projections
Entrepreneurs take risks and some of them might incur huge losses simply because they did not prepare financial projections for their start-ups. This causes them to spend more money than they really have because they overestimate their potential income. Doing so leaves them in a state of perpetual debt if the income from their businesses is not forthcoming. Always prepare a balance sheet, an income statement as well as a cash flow statement before you kick off your business. Operate within the limits of a budget and adjust your current spending if you run short of cash. Include these possible adjustments in your business plan as contingencies if your cash runs out.
- Prepare a Management Structure
Every organization even a small business requires a proper management structure that distributes responsibilities to everyone hired by the organization. Include everyone that will help you run this business in your management structure. For example, family members who help you run the business are part of your staff and as such, you should include them in the overall labour count in your business plan. Plans for businesses should also have a hierarchical management structure so that everyone within the organization knows who to go to when they have a problem. Go on. Create plans for businesses using these ideas and you will surely succeed.