For a newbie, the market is full of opportunities and countless possibilities, and having a revolutionary idea might just be a hit among the consumers. As a budding entrepreneur, launching your business in the market is a pretty scary but exciting feeling. But these ideas are of no use if not backed by a structured plan that inspires confidence of investors and gets you funded.
Understand need for a business plan in the context of your goals
Don’t expect a nice basket of juicy opportunities ready for you to step into and make millions of bucks as you look to transform your idea into business; the market, even for new ideas, is dark and intensely competed. This is why you need a systematic business plan, a blueprint of sorts that helps you envisage and quantify challenges, opportunities, and your broad levelled strategies to beat and tap them. This plan is the first building block for converting your dream business into a reality. Listed below are some of the main points that would help you formulate a business plan:
Get the basic ingredients right:
First of all start by brainstorming, understanding, and short-listing the basic factors that will affect your business directly. Business plans are grounded and very practical, built on facts, not lofty imaginations. Your ideas must be realistic and practically achievable. Plan on asset acquisition, production management, supply chain, and logistics; these are the bare bones of your operational strategies. Map out an expansion plan, to the level of details where you define selection criteria for store locations. Acknowledge the companies you’ll be competing against. Dedicate space to address questions about leadership and organizational structure.
Why should anyone invest in your company?
The main purpose of starting any company is to earn profit, convince your investors of the credibility and potential of your business plan. Jot down all the points why your organisation is a profitable investment. Mention the strengths of your company such as the lucrative market conditions, strong infrastructure, management and pricing policies in a clear and logical way.
The OGSCapital business consultants firm discusses different aspects of a business plan below:
A short and simple executive summary:
No one wants to read an introduction that goes on and on, adopt a crisp and practical approach that instantly catches the attention of the reader. Succeeding the title page, this document is an overview of your business plans. An executive summary is a one page document informing the investors about the goals, capital accumulation and other ground realities such as milestones targeted by the company.
Describe the company in a nutshell:
The company overview tells the reader all about the location, history, hierarchy and legislation of the company. A detailed presentation of your business structure and operation, it informs the potential investors about the current financial position and future aspirations of the company. Even the advertising and brand promotion techniques are discussed here complete with the demand graph and list of competitors. Ensure that all the information you provide is authentic as this document can influence the investor’s decision to invest money on your business.
Present your strategies for increasing market share:
An acute observation of the market conditions is necessary to gauge the current position and future of your company. This includes lengthy and detailed market surveys and reports about the demand and supply cycles, the present value of the currency, your competition, sales, growth potential and other important factors that give you an idea as to how you can maximize your profits. Market analysis also helps a lot in choosing the current location and determines the organisational structure of the company.
Estimate the market share:
Price fixing and brand promotion is something that varies from company to company. A practical distribution network backed by aggressive advertisement is a sure shot way to catch the attention of the consumer. A detailed understanding of the prevalent market trends and customer preferences helps you estimate the future changes. Be on the alert and look out for what your competitors are doing to decide the pricing policies for your product. Now that you know your market, you’re ready to take the plunge!
As an entrepreneur it is obvious that you’d want to be the best and earn as much as possible. The trick is to be unique, offering the consumer something that is both innovative and serves some practical purpose. High production standards, smart pricing and advertising methods, goodwill and a keen observation of your competitor ensure that you’re company is positioned among the top ranks. Present your well thought out market strategy to your investors that tells them why investing in your business is a good idea.
Pricing, promotion and distribution:
How you price and present your product speaks a great deal about your marketing and entrepreneurship skills. Adopting cost cutting techniques and using modern machines for production allows you to fix a low price without disturbing the profit shares. Also, how you present your product greatly impacts your profit margin. Investors will only put in their money if they’re convinced of your company’s potential.
A graphical representation:
For better and easier understanding create a graph of all the merits and demerits of your company, along with the market condition and competition, something that enables an investor to understand everything about the company at a glance.