It is said that failing to plan , is planning to fail ! And its quite true . A lot of businesses don’t make it , because they overlooked some key aspects .
Well , so after the above motivation lets just see , if we can turn the tide . The first and foremost step to starting anything business , or converting a killer idea into a deliverable is a Business Plan. Yes , you read it right !!! You can be a genius who have used a million napkins , at your friendly neighborhood bar detailing your idea , it is still a fruitful pursuit to do a formal one. So what does a good business plan consist of ? Those fancy terms and complicated looking graphs ? Not really . Not necessarily . Then lets try to break down the essentials :-
A vision / mission statement :
Simply put it will define , what service do u want to provide . Why do u think it is required and were will u want to see the business in a few years from now . So lets look at a few examples :
If you are a hair salon , your statement should describe and focus on the customer friendly staff , latest in trends and best prices in town.
On the other hand if you are a restaurant specializing in home delivery , your vision should be to provide great tasting , authentic food in the quickest time possible .
Business description :
Description of your company or service , and How your product / Service is different .
Here you should be able to describe the reason why you are getting into business and what specific customer vertical / industry segment would you be able to service better than your competitors . It is not necessary to have a completely unique product . Sometimes , its enough to identify a gap and improvise on an existing service offering .
Market Analysis :
A detail of market segment you are trying to enter . Key competitors , their business models , marketing strategies and most of all where will you fit in this marketplace .
This exercise will help in identifying how you can do better than your competitor and how you will identify and close your few first business deals . Maybe its a geography that no one caters to , or a after sales service or maybe just an unadvertised offering .
Your own SWOT analysis :
It will help in creating a realistic picture , and will give a easy way forward for business .
it always helps to look inwards and gather your thoughts . To win and succeed , you need to know where you stand first and foremost . especially in today’s fast paced times it is imperative to be able to anticipate and plan ahead , so that in business as in life you are not caught unaware.
A Cash flow statement :
Its all about Money Honey !! and this will be a very very important component , as it will be a breakdown projected expenses for say , marketing , operations , IT and if you have a physical product logistics and warehousing cost .
Revenue Projections :
Its still about Money ! if you are not in the business for the love of it , then you better have great projections , basis on the market share that you can realistically capture and grow in the segment .
A summary to wrap it all up !!!
Now that you have a business plan lets take a coffee break and after we come back ask ourselves what do we call our business ??? Got a name yet ?