Every new business or established company that wants to expand really should have a business plan. A plan can help you personally stay on track, but more than that it can help you plan for ways to make a good profit and achieve what you want for your business.
While a business plan doesn’t equal instant success, a business without a plan is less likely to succeed than one that does have a plan. You need to develop a plan to be sure you achieve your goals and drive a sustainable business. Don’t simply go with the flow and expect positive results. You need to create goals, clear action steps and research your industry and competition to have a chance as the competition is fierce today.
The following are the 7 major components required to creating a realistic business plan.
FREE Checklist: Common Business Mistakes You MUST Avoid
7 Major Components For Your Business Plan
1. Long and Short Term Goals
Not only does writing down long and short term goals help you keep track of your progress but it’s essential to regularly assess your business plan if you want to grow.
The best way to write out your business plan is to separate it into 6 month, 1 year, 5 year and 10 year blocks of time. Start with your 10 year goals and work your way backwards by identifying how you can reach your larger goals by completing smaller goals.
Some of the things that should be addressed include net profit goals, advertising campaigns, customer attained or clients reach, number of employees you may wish to have and other investments you may want to make in the future. Most small or new businesses will need to present a business plan to investors, so make sure everything you can think of is covered and described in great detail.
2. Discover Your Niche
What does your business focus on? What are the things you’re passionate about or what to share with other viewers? A niche is a specific category or industry. It’s designed to help better market your business and create more relevant content, products and services for your target audience.
3. Study the Competition
Study and observe your competition. This is done through a market analysis where you research and evaluate your competition and your target audience to ensure you know what to do too successfully. For example, what are your competitors doing to stand out and be different? Why are they successful? What strategies are they implementing, and why does it help make them successful? Is there a way you can do better, or is there a whole within this niche to tap into and improve?
4. Determine Your Value Proposition
After you study your competition, it is time to narrow down your content further. Your niche is the industry, but now you need to discover what value you can bring to it. Why should people buy from your business and not another? Who are you? What do you do? What is your business all about? Who is your target market or ideal customer, and why? What problems do you want to solve?
5. Highlight Your Resources
Then you need to highlight the resources and costs it takes to run the business. What resources, tools, and other things do you need to fund your business?
6. Create Your Monetization Strategy
How do you plan to monetize your business, and when? First, make sure they relate to your niche and something your audience will understand and be willing to buy.
7. Marketing Strategy and Financial Projections
Layout how you plan to grow your business and how each monetization strategy will fund your goals.
Free Checklist: Common Business Mistakes To Avoid
Remember, you’re running a business, not pursuing a hobby. To experience success, you must have a business plan. As time goes on things can change if something doesn’t go plan. We all make mistakes. We wouldn’t be human if we didn’t. So always take the time to come back to your plan, evaluate it, and update it as your goals or ideas change.
In the world of business, you’re going to make some minor boo-boos and some cataclysmic mistakes. It’s all part of the learning process. Although mistakes are going to happen, you can avoid the common business mistakes and other pitfalls that are lurking around the corner. Download my free checklist, Common Business Mistakes, and avoid the false moves and slipups that even veteran business owners and entrepreneurs make.