Why
do you need a business plan?
Like everything in life, tasks become more focused and
easier to execute when they have solid plans behind them. Your business is no
different. From idea to implementation, your business is always evolving and
changing. A business plan is a structured document – a roadmap - that helps the
business owner plan for growth.
Your business plan will essentially be a list of
answers to the questions you should be asking, including; Who are your clients?
Who is your competition? How will you compete? How much will you sell? At what
prices? What do you project your revenues and profit margins to be in the next year?
In the next two years? How do you plan to expand?
Answering these questions in a formal document will
not only give your business a structured way to seek funding, it will provide a
template to work with to create growth mechanisms, reduce risks and point your business
in the right direction.
What
should you include in a business plan?
Your business plan should be about understanding the
basics; your market, what you are selling and why it is unique. As well, it
should include a marketing strategy, mapping out the financials and setting measurable
goals. It should also evolve as your business grows and become a living
document that gets updated with every stage of growth.
Business Profile
In this section you will describe yourself, your team,
your business and your business idea’s history. The goal is to show that you
are the right people, who have the right experience to pull off your business
venture. How did the idea come to form, and what background knowledge do you
have that will contribute to its success?
Finances
The rule of thumb when writing the financial section
of a business plan is to be realistic. Potential funders will rely on this
information to decide whether or not the investment is feasible. This section
should identify your current, as well as projected sales targets.
Operations
Outline your business by its product and/or services. Use
this section to demonstrate your understanding of your business and how it
functions. Outline how your business will function – how many employees will
you need? What kind of human resources structure will you need?
Marketing
This is a very important part of your business plan.
Here, you will need to outline your understanding of the market you’re in and
how your business fits into the grand scheme of things. Moreover, you will
identify how your business will be marketed to future clients, helping to
identify and grow your brand. From this section, you will be able to apply this
knowledge to most efficiently tap in to the market you’ve chosen.
Your business plan will serve as the backbone of your
business structure and will help guide you and your investors as you move
forward.
Still unsure if you’re ready to tackle this on your
own? A business coach at YES can help answer any questions you may have. Visit
us at www.yesmontreal.ca
for more details on how to schedule your free consult.
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