10 Keys to a Succesful Business Plan

TO A SUCCESSFUL 10 BUSINESS PLAN KEYS When starting a business, you must have a clear vision of your purpose and goals. The best way to do this is through a business plan: a written, organized layout for how you want your business to start, perform, and excel. Learn the essentials for creating a great business plan. WHY YOU SHOULD WRITE A BUSINESS PLAN IN THE FIRST PLACE ---------------------------------------------------------------- As a business owner, there are many reasons why you might need one, such as: 27% Searching for investors of small businesses have never had a Applying for business loans business plan! Making improvements in your existing business 1 IDENTIFY THE NEED YOUR BUSINESS FULFILLS 2 CLEARLY DESCRIBE HOW IT FULFILLS THIS NEED Define the need (or problem) that your business satisfies This is the place for your mission statement If you aren't sure what your business' List objectives for the actions your business takes to address holes in the market purpose is, you need to rethink it before launching! Chances are, other businesses are working to fulfill the same niche – but how does your business do it better than they do? 3 RECOGNIZE HOW YOUR BUSINESS IS UNIQUE Outline a business model that details the advantages Distinguish yourself from the crowd to boost your shot of your organization, in order to ascertain how your at investment capital business will survive 36% of surveyed business owners with a business Scrutinize the strengths and weaknesses of your plan obtained investment capital competition, as well Only 18% of those without business plans secured it 4 NAME YOUR KEY STAKEHOLDERS 5 KNOW THE SIZE OF YOUR MARKET Identify your management team, board, and advisers Analyze the market conditions: how big it is, how much is it growing, how fast is it growing and what is its profit potential? Include the details of their value-add 6 KNOW WHO MAKES UP YOUR TARGET MARKET Your marketing strategies should be clearly aimed at your target market CUSTOMER SERVICE If not, you're wasting time, effort, and money 7 DEVISE IDEAL PROMOTIONAL STRATEGIES 8 BREAK DOWN YOUR REVENUE STREAMS How do you reach that target market? This should include: Your strategy should include the ideal mediums that speak most to your clients and where they gather their information %$4 PRICING COSTS MARGINS EXPENSES STRUCTURE Revenue prediction in real terms can actually be detrimental to your plan (as it often doesn't meet expectations) – but knowing what makes up your revenue is valuable 9 BUDGET HOW MUCH MONEY YOU NEED TO GET STARTED – AND KEEP GOING Funding to move your idea to a proof of concept will typically come from friends, family, and personal funds. · SBA loans and bank financing are options for modest growth businesses. · Angel investors and venture capitalists will fund rapid growth opportunities. Whoever is providing your funding will want to see a solid business plan. If you apply for an SBA loan, you'll need 30% of the funding (plus a solid business plan) 30% If approved, SBA will loan you up 70% to 70% of what you need to start 10 CREATEA PLAN FOR BREAKING EVEN Create contingencies for positive and negative scenarios • If you hit a rough patch and you don't have a plan, your business could slump or even fail Yes, revenue can be tough to predict... but create a few different scenarios and establish the sales required to pay -• If you see unexpected success, your goals may be pushed up significantly - and suddenly you need a new plan for your expenses and subsequently turn a profit! If possible, break it down month-by-month for your business' first two years 64% Just 43% of surveyed business owners with a business of those without a plan subsequently grew business plan could their business say the same To obtain the skills you need to develop a great business, consider obtaining an online MBA from WSU. You can continue your education while maintaining your career, so that you can apply what you learn as you learn it. Contact us today to learn more. http://omba.wsu.edu/mba-program/ WASHINGTON STATE UNIVERSITY Sources: http://www.thehartford.com/smallbizahead/hub-article/writing-business-plan http://www.businessnewsdaily.com/3313-business-plan-templates.html http://smallbiztrends.com/2010/06/business-plan-success-twice-as-likely.html http://www.businessinsider.com/how-to-write-a-successful-business-plan-2012-11 http://www.allbusiness.com/business-planning-structures/business-plans/3508-1.html http://www.forbes.com/sites/thesba/2012/08/06/top-10-questions-every-business-planshould-answer/ %24