We all can have great business ideas but turning such ideas into viable business is a different ball game.
One may think they are ready to launch a startup which is splendid news for and one should be excited about but before you start seeking legal advice, renting office space, or forming an LLC, you need to put your thoughts on paper.
This will help you stay organized and focused. Take it from me, this plan is what will get you valuable feedback. To start, you need to have a typical business plan. And this is how it should look like;
You can draft these all by yourself, hire someone or use free tools online. Thoroughly writing out your plan accomplishes several things.
First, it gives you a much better understanding of your business. You may think you know what you’re talking about, but putting it on paper will truly make you an expert. Writing a formal plan increases your chances of success by 16%.
A business plan also gives you a better chance of raising capital for your startup if you are looking for funding. No banks or investors will give you a dollar if you don’t have a solid business plan. Plus, companies with business plans also see higher growth rates than those without a plan.
Now that you have a business idea and you don't know how to draft that plan, keep reading, in here, we are highlighting all the aspects of a good business plan and how to implement each one of them:
Make sure your company has a clear objective
Don't be ambiguous when writing your company description. Instead, identify who you are and when you plan ongoing into business. State what kinds of products or services you’ll be offering and in what industry.
Where will your business operate, have a clear-cut if you will have it as a physical store, online business or both? Is the startup regional, national or international and in what sense?
In here ensure you have your mission and vision incorporated in the description. This will help anyone including you to gain a better understanding of your startup.
You can briefly discuss the vision and future of your startup company, but you don’t need to go into too much detail. You’ll cover that in greater depth as you write the rest of your business plan.
Keep in mind, this description is a summary, so there’s no reason for you to write a ton. This section should be pretty concise and no more than three or four paragraphs.
It is vital to note that your thought that your business is fit for everyone is not true. Your business isn’t for everyone.
If you want to succeed in your business, start by first identifying your target market for your startup. To be able to identify your target market, you need to conduct a market research.
This is arguably the most important part of launching a startup company. If there’s no market for your business, the company will fail. It’s as simple as that. To better figure out the target market, look at the following things:
Start with things like:
Make sure that in your plan, you mention everything that you have corrected from different surveys and interviews. That gives you a better look into the future and how best to get into the business.
No business is entirely new. Do you agree to that? When you are doing your research, you will realize along the way, other firms are doing something similar or close to what you are planning to do. They become your competition.
Analyzing your competition doesn't mean you unethically dig deep to find ways to throw them out of business but rather to understand them better and know how best to make your new startup stand out.
Don’t expect to be successful if you’re planning to launch a competitor’s carbon copy. Customers won’t have a reason to switch to your brand if it’s the same as the company they already know and trust.
There are so many things you can do to separate yourself from the crowd;
A business cannot run without a budget. You need to have all your numbers in order when you’re writing a business plan, especially if you’re planning on securing investment funding.
Figure out exactly how much money you need to start the business and stay operational; otherwise, you’ll run out of money.
Consider everything. Start with the basics like:
Remember that things don't always go as planned and as such, it is vital to have accurate numbers and, in some instances, even a higher estimate to cover for the inflation once in a while.
Let’s continue talking about your financials. Obviously, you won’t have any income statements, balance sheets, cash flow reports, or other accounting documents if you’re not fully operational.
However, you can still make projections. You can base these projections on the total population of the target market in your area and what percentage of that market you think you can penetrate.
Just don’t try to bite off more than you can chew. Keep everything within reason.
Define your power structure clearly.
In the plan, make sure you have covered all the organizational structure of your startup. This depends on how you’re planning to scale the company, it’s best to get this sorted out sooner rather than later.
Have the hierarchy in place before you start anything. That way, there’s no debate over who reports to which position. It’s clear who is in charge of specific people and departments.
Don’t get too complex with this. Make sure, this is well drafted and understandable by all to ensure that no one gets confused about who is in charge and so on.
You have everything else all set up, what is left is your marketing plan. It is good it has to come at this level because it relies on everything else, I’ve talked about so far.
The marketing plan will rely mostly on your financial projections and budget. I could sit here and talk about different marketing strategies all day. But there’s no right or wrong way to approach this for your startup company.
My recommendation would be to stay as cost effective as possible. Be versatile and well-balanced too.
All in all, before you try anything else, you can get these basics done first:
Launching a startup company is exciting. It’s easy to get so caught up in the moment that you rush into things. If you want to set yourself up for success, you need to take a step back and plan things out.
Going through the process of writing a formal business plan will increase your chances of securing an investment and also improve your potential growth rate.
We can help you scale and grow, find out how!