5 Tips for Developing a Viable Business Plan
Posted on January 20th, 2018 by Oddo & Babat, P.C.
A business plan is a document that lays out a business’s future plans and strategies and details how it will achieve its set goals. There are many different tips that can help you develop a sound plan to work off of, but these are the five most important.
Being Reasonable
A realistic outline should always be reasonable and detailed. The budgets, sales goals, and dates for milestone should come from strategies that are very achievable. A solid map should lay out the good and bad within your industry. It should have a list of backup plans as well. Something to think about is making a list where you write down feasible goals that help address these challenges and capitalize on the available circumstances.
Defining the Direction of the Business
When you are trying to pinpoint where your business is going, a few rules must be followed. Create a marketing statement that outlines what the business would do to fulfill the needs and wants of its customers. The marketing statement will push the business in the right path and make sure that it stays on its projected path. It should include what products a business wishes to sell, what its budget is for the next two years, and how much growth is expected to occur within those years.
Factors that Influence Success
Three things known to influence the success of a business are its customers, supply and demand, and competitors. The customers are truly the backbone to any business, and their demand is what generates income. Likewise a business’s competitors also are a big help in driving the success of a business. It is human nature to want to win a competition, and if a business’s competitors are attracting more business, then it is time to introduce a new product or sale
Projected Financial Growth
The financial execution is a testament to a business’s accomplishments. The business plan should have somewhat of a projected plan for how the company will perform based on its particular market conditions and exposure to its competition. Business plans need to address the profitability of its merchandise and the demographic of customers that the business expects to bring in. An ideal approach when projecting what the company will yield each year is to overestimate the company expenses and undervalue the expected revenues. This way you will always exceed your goal income.
Developing a Unique Strategy
A unique and sound plan should outline how the company will obtain and sustain a competitive advantage in the market. An analysis of the market’s competitors is always a good place to start. Exploring their strengths and weaknesses will give you the upper hand in figuring out your next strategic step. Strategies should anticipate potential problems and outline solutions to those problems.
Don’t forget to give consideration to the legal obligations of forming a business as well. One of the best business formation lawyers Folsom CA trusts can help you with any questions.
Thanks to our friends and contributors from Yee Law Group for their insight into business law.
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