You maybe working as an employer in a company, still studying, or just playing your role as a housewife and a mother, but at a certain point in your life you may think that this is the time to begin your own business. Actually, starting a new business is a tough decision and it comes with a lot of headaches, so you must be prepared for those headaches and try to get ahead of them to decrease their impact on your business.
The best way to prepare yourself for such challenges which you may face at your startup is writing a business plan. The technicalities and standard information that you must include in your business plan are easy to find, but there are some steps to follow before you write a word.
Check the following five steps then start to draft your business plan.
1- Determine the purpose of your business
You want to make money, it is clear. But there are many questions to ask first like what you must focus on, why it exists, why employees would want to get out of bed in the morning, and how people representing the business will behave… You must answer all the questions which determine your purpose.
Take your time to identify your take business’s core values and purpose, habits, beliefs, values and capability, so that you and your team will be working from a clear starting point. You will also have a vivid framework for discussion about working styles and strengths.
2- Build your vision through a mission statement
Having a clear vision of what you want to accomplish as a business is the key for a successful one, but you must put together a mission statement to build this vision.
Your mission statement is made of the answer of these questions:
Why you’re in business?
What you are going to do?
How you’re going to do it?
Who you want as customers?
How you are going to treat them?
From the mission statement, you will be able to define what makes you unique, and how you intend to differentiate and position your business.
3- Clarify your business model
Your business plan must include a good financial model which includes details about hiring, pricing, sales, cost of acquisition, expenses and growth. This financial model should be always revisited and updated especially when you begin the real action.
4- Identify your target market
Actually this is the key of your success, because identifying a target market can be a little tricky. Accordimg to Grant Leboff, CEO of Sticky Marketing Club, the answer of “Why am I uniquely placed to solve the problem?” identifies your target.
If your offer isn’t the most attractive to your client, then you must change your offering or define your target market differently.
5- Test your business idea
As a starter, you should go out and talk to industry experts, potential customers in their target market. You must also talk to some real potential future clients and ask them for an honest feedback.
Writing a great business plan will not really make your business successful, but it will absolutely draw a road map for you to succeed in the future. Therefore, you must include every important detail in your business plan.