How to Create a Solid Business Plan...

A business plan is vital when it comes to starting up a successful company. Some people try to skip this step and jump right into starting the business - but if you fail to prepare, you are preparing to fail. A business plan clarifies your goals, and ensures that you don’t miss anything out. It is also highly likely that you will need to show your business plans to your lender (if you need one) and also to get a license.

What to Include in Your Business Plan

Your business plan should be concise and clear. It should include all the facts and goals, and any market research findings that have previously been collected. Every business plan should include:

• Who, What, Where and How. List who is going to be working with you, and where it's located (if it has a physical location). Describe what the business will do on a day to day basis e.g sell jewellery as well as any equipment that will be used. Finally, discuss your main marketing strategy.
• Your Market. Who is your target market? What is the current state of this industry and who are your main competitors? Are there any gaps in the market? What is your unique selling point? These questions are vital for yourself as well as any possible investors.
• Financials. How much capital do you need to get started? What are your expenses? What are your expected sales? What is your profit margin? Create a statement that is as realistic as possible.

If you need help, look over an existing business plan template.

Be Realistic

There is no point in creating a business plan which you know is not realistic, it will only hinder you in the future as you begin to start your business venture. Many fall down the route of making their plan too fanciful, and then it fails. You have the challenge of writing a detailed description of something that does not yet exist. This can make it tempting to be overly optimistic. You should avoid this temptation, as it will cause you to lose credibility with investors.

Although you don't want to be negative when starting a new business, it is better to plan for the lowest level of success, and then anything above is a massive positive. This is not to say not to be optimistic about your new business idea, but just to ensure you will definitely have enough funding etc. Many new businesses underestimate things like expenses and the amount of time it takes to accomplish basic tasks (such as setting up a retail store or building a website). They may also overestimate demand for their product or service.

Do Your Research

Researching your market is key to creating a viable business plan. You need to find out what your competitors are doing; in order to learn from their successes, and also pick up on their weaknesses which you can exploit. It will also help you to make realistic projections on sales and cash flow. You can also carry out research into your target market, you could do this using questionnaires and focus groups. Your customers are the ones who will make your business a success, so it is essential to find out what they want from you - and then plan to meet their needs.