How to Create an Effective Business Plan

When starting a new company, an effective business plan is integral to success. The right business plan not only provides a great roadmap to follow as you launch your new venture, but it also allows you to entice and impress potential investors and partners.

 

A truly effective business plan should address these items:

  • The market
  • Product development and production
  • The management team
  • Marketing strategies
  • Sales venues
  • Financial details

 

Need a little help creating your plan? Follow these simple steps.

 

  1. Sum it up. You need to create a killer business summary that can really wow investors and get them excited about your company. A good summary should include a description of your business, your products, and your industry. When done reading it, an investor should have a good idea of what your vision for the new company is.
  2. Do market research. Market research is incredibly important to creating an effective business plan. Analyze your industry and its marketplace to determine demand for your product, get an idea of who your customers are, and identify any possible competitors you may face. You should also use the SWOT analysis method to determine any strengths, weaknesses, opportunities, and threats that your company may have.
  3. Outline development and production. You’ll need to outline the specific details of how your products will be developed and manufactured. How much labor will be required? Where will production take place? How will distribution work? Basically, you need map out the exact process your business will go through to produce its services and products.
  4. Define sales methods. Once you’ve covered how development and production will happen, you need to define your sales methods. Where will your services be offered? Do you have potential sales venues already lined up? Will sales online be a possibility?  Paint a clear picture of where and how customers will be able to purchase your products.
  5. Break down the financials. This is really what an investor is looking at when considering putting money into your new business. How much profit will this company make? How much will products be sold for? In the long run, what type of numbers can be expected? Outline all the nitty gritty financial details, so investors can get a clear picture of what funds are needed now, and what type of return can be expected in the future. If possible, use graphs and charts to really illustrate your data.
  6. Profile your team. A potential investor won’t put money into your company unless they’re confident in the people running the show. Put together detailed biographies of your management team that detail each person’s qualifications, education, resume, and anything else that may make them a trustworthy potential business partner.
  7. Detail marketing strategies. Creating a great product is one thing, but getting it to sell is another. A truly effective business plan should also include projected marketing strategies that will entice customers to buy products and take part in the new business. What sort of advertising will be used? Will there be any promotions that may encourage buying? Identify those and spur confidence in your investors that, not only can you launch a ground-breaking product, but you can sell it, too.
  8. Offer measurable projections. Finally, once you’ve outlined all details of your business, you need to make some projections as to your company’s performance. Outline what your expected sales numbers will be in one year, five years, and 10 years, and project the possible annual growth of the company. By including these in your business plan, you’re giving yourself goals to work toward, as well as showing investors that you are forward-thinking and looking ahead to the future.

 

Need helping creating an effective business plan for your company? Contact the Connell Curtis Group today.

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