5 Points to Define in Your New Business Plan

Aug 30, 2022 5 Min Read
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A new plan can elevate your business game!

If you’re thinking of launching a brand-new venture so you can explore the potential of being your own boss, one of the first things you’ll need is the right plan. As you’ll learn in any business school, or from any professional mentor, a business plan is essentially the compass you use to navigate your new lifestyle, ensuring you can find your way towards success. More than just a document, the right strategy can help you to figure out how you’re going to make a profit, which audiences you’re going to target, and even what you can do to stand out from the competition. While there are numerous factors you need to define in a successful business plan, there are key elements you should pay particularly strong attention to.

Read more: How The Right Strategy Can Help You Succeed In Business

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Company Description

Perhaps the most obvious must-have in any business plan, your company description and executive summary is how you’ll define your organisation to customers, employees, and stakeholders. You’ll need to take some time to think carefully about what you really want to do with your venture. What kind of problems are you trying to solve, and how do you know these issues are relevant to your audience? What are you going to do to impact your industry? The full description should look at everything from your intended marketplace, to how you’re going to take your product to market. This could mean looking at things like working with partners and distributers, or even selling your product on different marketplace sites. 

Financial Strategy

One of the most important things you’ll use your plan for is to attract potential investors and demonstrate the profitability of your company to loan providers. This means you’ll need to take some time to define exactly how much money you need to borrow in small business loans, as well as how you’re going to make sure you’re earning a profit each month. A good financial strategy will cover everything from the initial costs of launching your company, to the regular repeat expenses, like hiring employees or paying for materials. It should also show you how much you need to earn to break even each month, even before you’re earning extra cash. The more detailed your plan, the better equipped you’ll be to apply for small loans.

Supplementary reading: A Complete Guide On Outsourced Finance Services

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Market Analysis

Every company has a specific target audience full of those most likely to be interested in the products or services they have for sale. Your market analysis allows you to examine all of the available groups who might be interested in your solution, and define which ones you want to pay attention to. This research component of your plan will also involve looking at the trends in your wider market or industry, and the competition you face. You’ll need to consider which other companies are already serving customers similar to yours, as well as how you can separate yourself from the existing options on the market. A good analysis will also highlight how much of an open space there is for your business in a specific industry. If your sector is already crowded, you may want to consider a different approach.

This may interest you: Are Sales And Marketing The Same?

Competitive Analysis

It might feel counterintuitive to research your competition when you are starting to build your own brand and define your space within the market, but it is essential. Understanding what your competitors are doing and if it does or does not work will help you define your processes and execute the strategies you develop for yourself. Working in tandem with your market analysis, a competitive analysis can give you an edge with the customers in your target market. This is something that every new business needs, but especially those that are operating within an already saturated market. If you are opening a beauty salon for example, unless you are the stand-alone option in a small town, you need to know what your competition is doing, so that you can do it better. 

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Human Resources and People Planning

It is not uncommon for new business owners to work alone, or with only one of two people, but that is not sustainable if eventual growth and expansion are your goals. There are tasks your company should outsource that can help put off the need for full time employees for a while. But even if you cannot reasonably see yourself making an outside hire for years, it is important to define now the ideal candidate you will seek out. Think about things like what skills you need these employees to bring to the table, in what ways you will want them to embody the corporate mission, and even what office style you will adopt, meaning remote on in-person. Forecasting these needs can feel strange and even difficult however getting a preliminary set of expectations worked into your new business plan now is significantly easier than starting from scratch when the need arises, and the pressure is on. 

What to read next: Human Resources Online: What Matters Most To Employees?

 

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