Do I Need a Business Plan?
If you have a small business or you are
contemplating starting one, you may wonder if you need a business
plan.
The fact is that all businesses can
benefit from a business plan. If you need funding for your business,
potential backers will want to see your business plan. Even if you
are starting a work at home business that does not need financial
backing, a business plan can help guide you as your company grows.
How Does a Business Plan Guide a
Company?
To write a business plan, you need to
research the niche you would like to fill. What makes your idea
unique? How are you different from other companies in your field?
If you do this research before you actually begin your business, you
can be sure you have a viable idea.
Another important consideration is how
your business will actually make money. To know this, you will need
to know your market base. What services will you provide? How old
is your ideal customer, and what services do they need? Answering
these questions can help you target both your marketing efforts and
your business goals.
As you learn more about your
prospective clients, you can then answer how you will reach them to
sell them your product as well as how likely you are to expand your
market share. Another important consideration is how you plan to
grow in the future and how you will handle that growth.
How Many Years Does a Business Plan
Cover?
A business plan typically covers 3 to 5
years. This document is living, meaning you do have the ability to
change it as your company's situation changes.
What Should Be Included in a
Business Plan?
A business plan should include several
important pieces including the Executive Summary, the Company
Description, Market Analysis, Organization and Management, Service or
Product Line and Marketing and Sales, to name a few. The U.S.
Small Business Administration has an excellent tutorial to guide
you through all of the parts of a business plan.
A business plan is essential to gaining
funding, but even if you don't need funding, it can help you think
through your business and develop a strategy for marketing as well as
making money. By researching your market base as well as the
competition, you can be more certain your business will likely be
successful. You will start your business a few steps ahead of a
competitor who may begin their business with no research or formal
plan for growth.
If you already operate a small
business, did you have a business plan first?
No comments: