Business Start-up Success: How This One Simple Step Will Step Up Your Sales – The Business Plan

If given the option of choosing between a sound foundation and a frail one, preference towards the former alternative is inevitable. A business plan acts as the foundation of the business. It is of paramount importance to develop a sense of direction before embarking a journey. A business plan serves this purpose of direction. It is a document stating the business's future objectives and strategies for achieving them. The significance of devising a business plan is often a subject of argument. While it may be considered irrelevant to some, it mostly plays a vital role in the success of the business. It is always wiser to anticipate and appropriately plan beforehand.

For a startup to succeed, the task of the entrepreneur does not end with the development of the concept or idea. It is also important to achieve clarity by putting this concept into writing. A business plan allows entrepreneurs to focus on:

• The initial position of the business
• The end result, which is to be eventually and timely achieved
• The process of achieving the aforementioned result

An entire plan should be articulated, implemented and applied. This further elaborates the business idea and supports in the formation of strategies. The importance of the business plan cannot be emphasized enough. It is a strategic tool which aids determine the steps that are necessary for success. Both short-term and long-term goals are established alongside the ways of achieving them. Henceforth, developing important milestones and the tools to measure success. This document also plays the role of communicating the vision of the entrepreneur to other key stakeholders and investors.

Components of the Business Plan

Meticulous and detailed efforts are required for the formation of the business plan. It should be made in harmony with the audience of the document. All the stakeholders are taken into consideration and the content should be positioned to enclose all the elements that are vital to them. It should be flawless, methodical and comprehensible. The components may include(but not limited to):

Executive Summary

The executive summary is a synopsis of the all-inclusive business plan. It is the primary entity on the document, and should be made appealing enough for all the stakeholders/readers. Although an executive summary is a squashed version of the plan, it must also contain all the imperative elements related to the business. All the particulars that endorse the exclusivity of the business should be stated.

Company Description

A comprehensive explanation of the company should be made. This supports to the credibility of the company. An exhaustive account of the goals, mission, vision and objectives of the business should be included. All the elements demonstrating the unique nature of the company should be underlined. The segment is self-explanatory and any reader of the document should be able to understand the complete profile of the company without assistance.

Product /Service Offering

Though an overview may have been provided in the company description, the reader still desires a meticulous account of the product/service to be offered by the company. This is the core part of the business and should be explained comprehensively. Mentioning suppliers (if any), costs, future sales projections, patents, copyrights concerns, volume and prices also add to the credibility of the offering.

Management&Organization Structure

This section of the business plan enlists all the individuals that will play diverse roles in the company. This underwritesto the credibility of the company. The future stakeholders can gain complete knowledge about the individuals of the organization. An introduction, a summary of their skill sets and primary job responsibilities should be included. This may include the entire ownership structure. If Board of Directors are involved, they may need to be identified.

Market Analysis and Trends

This section should include dissected details of the industry and the specific target market analysis. A brief history of the market to be provided, including the past performance and the future trends. All the data and statistics should be complied under this section. A clear explanation as to how the company fits in that corresponding market should be offered.

Opportunities and Risks

This section should stipulate a realistic picture of all the risks that the company might be confronting in the future. Strategies to grip them and transfigure them into opportunities need to be included with adequate risk management flowchart. This encourages the readers that the owners are systematic, risk-averse and pre-emptive. This eventually builds gain more trust in the firm.

Market Strategies

A complete description of the marketing strategy has to be included. The readers should have far-reaching knowledge about the techniques in which the product will be marketed to the consumers. This is inclusive of all the marketing decisions like product, pricing, positioning and the promotional tactics to be adopted.

Target Audience &Demand

This section may be a part of the market analysis; however, it is an enhanced idea to have it distinctly explained. The consumers are the most imperative element of all organizations. Their demographic, behavioral and location details should be provided. The stakeholders should be assured that the target audience is substantial and profitable for future progress.

Competition Analysis

This analysis assists the readers comprehend the position of the company with respect to the competition. All the features that contribute to the exceptionality of the company's product/service with respect to the competition should be discussed in this section. All the strategies that might be adopted in the future to outperform the competition are highlighted under this section.

Future Financial Projections

All the financial goals and anticipations are revealed under this section. These are the projections based on extensive market research and analysis. Anticipated revenue, projected sales, annual projected earnings for at least 3 to 5 years of operations, profit & loss statements, break-even analysis, cash flow projections, balance sheets might be included with pictorial representation. These figures should be supported by dependable data. This part is significant for investors and other loan applications.

Compliance and Regulations

All companies operate within a definite jurisdiction. To legally operate, all firms need to comply with corresponding requirements. This section includes all the needs for the company's transactions, labor practices and safety procedures of the industry. These may include internal and external compliance measures.

Importance of Business Plan to Investors

One of the most significant purposes of this document is to act as a foundation of generation of funds. It can be provided to financial institutions and other investors. The Business Plan should represent the entire financial plan of the company. It should exhibit the degree of likelihood of success. As making an investment is a profound matter, all the details included in the document need to justify the investment ask. An investor should be well informed about the capital requirement, a breakdown of the resources, allocation details, drawdown period etc. They should be convinced about the performance capability of the team. Clear milestones and points of achievements should be specified. Care should be taken that realistic tools are used to measure success. The content of the plan should be able to speak for itself.

Overall significance

This document acts as a gateway of information for all the future stakeholders of the company. It becomes a communication tool for all the individuals to be involved with the business in the future.

• This document can be shared with industry experts to ascertain potential and likely improvements.
• It is the foundation for generation of funds through investors and financial institutions.
• The company may draw proficient work forces through the Business Plan.
• In case of Partnerships and Joint Ventures, this document can be delivered to future partners.
• It may be used to secure credit from suppliers by providing particulars about projected sales.
• It can be used to attract potential customers (if relevant to the company)

Although a Business Plan does not provide assurance of success, however, it does drastically reduce the odds of failure. This document stipulates direction to the firm and aids to stay focused. By taking a widespread interpretation of all the elements related to the business, it may support entrepreneurs to reduce cost and increase efficiency dealing with financial matters, management issues, human resource planning, technology requirement, and ultimately, creating value for the customer/consumer.