Business Plans for Beginners
Business plans for entrepreneurs are, of course, very important. Moreover, they are equally needed for businessmen who have already taken place, not because they are some kind of “ritual” or tradition, but because it is an absolute necessity to consider one or another new idea, more detailed presentation of one’s own thoughts and “weighing” »Risks and profits.
In order for the business plan to work and investors give their consent to deposit funds into your project, the document must be drawn up correctly. By itself, a business plan always fulfills one main task – it shows a businessman whether he should take up his plan at all and what more attention needs to be paid to.
Creating a business plan yourself is quite simple, you just need to understand the fact that the document is compiled exclusively for your own individual use and no one will conduct any complex checks.
Do not worry that the structure of the plan will not be perfect. Remember that no one has the right to press you and insist on this or that document design. Any businessman is his own boss, marketer, financier and investor “in one bottle.”
Now more about what a quality business plan should include:
– In the first part, you need to consider the marketing side;
– In the second part, the financial side should be described in detail.
It is these information that a novice entrepreneur needs to properly organize his own business.
Components of a business plan
1. Product or service
In this paragraph, you need to describe the product in detail. You must determine the benefits that you are ready to provide to the consumer, as well as describe in detail the value side of the product in relation to the client. To make this a little easier, you can use detailed answers to questions:
– What kind of product or service are you ready to offer consumers?
– What exactly needs can your product / service satisfy?
– What are the advantages of a product or service (if you look from the point of view of the client)?
– For what reason should the customer choose your product?
– What are the disadvantages of the proposed product / service and how can I overcome them?
In this part of the document, it is necessary, first of all, to answer the question “to whom and in what quantity will it be possible to sell a product / service?”.
It is worth paying attention to the size of the market, for which you can take advantage of marketing research. Novice entrepreneurs, sometimes they can’t do such a rather complicated and capacious work on their own, without an economic education.
To solve this problem, you can use the help of professionals and order your own individual market research (however, you will have to pay for it) or use the “method of assumptions”, taking as a basis the information available in the media, Internet resources and found during personal observations.
To calculate the total (approximate) number of sales, you need to set a number of questions presented in the list below:
Where to get money to start your own business? It is this problem that 95% of beginning entrepreneurs face! In the article “Where to get money for a business” we revealed the most relevant ways to get start-up capital for an entrepreneur. We also recommend that you carefully study the results of our experiment in exchange earnings: “see the results of the experiment”
– Who will and will be able to buy your products? In this case, it is important to calculate the target audience of the selected market segment (age, gender, social status, income level, etc.);
– Where do potential customers live? Here you should determine the sales territory (city, district, region, etc.);
– How often will people use the product / service (long-term use, everyday, etc.)?
– What is the cost of similar products at the nearest competitive organizations?
3. Sales and their forecasting
This item of the business plan is better to count on a long-term period of time, for a year, breaking it monthly. Moreover, it will be necessary to take into account seasonal sales and the level of the total flow (planned) for the year. It is better to break such a planned volume not by one month, but by quarter or half year.
As a result, you should get something like the following list:
– Sales forecasts that can be used in the future (next year and beyond);
– Create a prototype circle of customers. Such a “portrait” of consumers will be needed when conducting marketing research in the future.
After that, it will become possible to draw up a sales plan for the product / service and it will be possible to develop advertising (taking into account certain costs for it).
4. Product sales plan
At this stage, it is worth describing as much as possible the entire process of selling goods / services to customers. It is necessary to include the implementation method:
stationary (point of a shopping center, store, etc.);
intermediary (telephone, Internet, pre-orders, etc.).