By Ken Hayward
The process of writing down a business plan requires dealing with the who, what, when, where, why, and how. We will be focusing in on logical, practical and methodical.
As a budding entrepreneur, a business plan serves as your road map for your business. With this, you will know where you are heading to and how to get there.
It also serves as a benchmark in measuring your progress. It contains an action plan and a set of strategies for your business to reach its maximum potential.
Logical - Creating A Marketing Plan
There must be a particular portion of the business plan dedicated solely to market analysis. In it, you must describe the profile of your target customer, the characteristics of the market, the competition, and your strategies in order to gain advantage over them.
In other words, this is a particular point wherein you need to have a marketing plan that will focus on the distribution system, products or services offered, price charged, and promotional efforts.
You need to describe your specific product or service in general terms and provide instructions how it will be utilized. This is also your opportunity to explain what your products or services are, their benefits and features, and other important facts your target market needs to know.
On the other hand, pricing must be based on the cost of doing business, expected competitive actions, your marketing goals, and the perceived worth of your products or services.
Moreover, the distribution portion of the marketing plan must describe how the products or services will be distributed. It must give details on how the product or service will be distributed or sold, may it be through retailers or direct sales.
Practical - Financial Plan And Legal Issues
As a rule of thumb, your business strategy must outline the most cost-effective and practical way to achieve each objective. With this, you need to have a financial plan which includes how much money will it cost as well as getting the needed funds.
Your financial plan is considered an essential part of developing an estimate of the profit potential and evaluating a new investment opportunity. This particular section must discuss the present financial status and the current forecast of your future financial statements. Your forecasts of revenues, expenses, and product demand must be as good as your assumptions, so they need to be realistic and valid.
On the other hand, you should also protect your business from imitators by giving importance to trademarks and service marks. With this, the marketing symbols of your company's products and services will be protected.
Methodical - The Implementation Of Marketing Plan
When creating a business plan, you must identify your strategy. In this connection, you must have an outline of the steps required to achieve the objectives and goals you have identified. This outline includes the day-to-day operations of your own business.
This also signifies market plan implementation. This is a particular point wherein you need to create an optimal combination of marketing strategies to get the attention of your potential customers.
Keep in mind that your business plan should also have an executive summary which gives highlights to specific features, such as your business mission and goals, products or services, marketing plan, management team, funding requirements, key elements of your daily operations, profit and cash forecasts, as well as return to the investor.
A Final Thought
As a budding entrepreneur, remember that a business plan can help you communicate your idea to your employees, potential employees and customers, and suppliers.
It will serve as your communication tool, that is why it must be carefully developed, comprehensive, and detailed. It will serve as a reminder of your objectives and plans, so always review your business plan.
It is best to review your progress on an annual basis for you to measure the actual performance of your business. Keep in mind that the market and nature of your business will change over time, so it is best to update and revise your business plan once a year.
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