Elizabeth Consulting Services
Creating a business plan for your business helps you create a roadmap for your new business. You have decided on an idea that you feel will solve a problem for your target market but the idea now needs to have a roadmap to be successful. A business plan is your trusty companion in navigating the twists and turns of the entrepreneurial landscape. Let’s get started with the steps that you need to create a business plan.
Step 1: Lay the Foundation with a Clear Executive Summary
Think of the executive summary as the sneak peek of your business plan – it’s the appetizer that leaves your readers hungry for more. The executive summary should outline your business concept, mission, and the key highlights of your plan. Keep it concise, and compelling, and capture the essence of what makes your business unique.
Ask yourself the following questions when you are drafting your executive summary.
What does my business mean to people?
What problem is your business solving for people?
What does your brand stand for?
How does your business improve your customer’s lives?
How does your business make people feel, once you have solved their problem?
Step 2: Define Your Business – Know Thyself
Before diving into the nitty gritty details, take a step back and define your business. What products or services will you offer? Who is your target audience? What sets you apart from the competition? Answering these questions and the questions in Step 1 will help you clarify your vision and mission. The answers to these questions will be the foundation for the rest of your plan.
Step 3: Market Research – The Sherlock Holmes Approach
Now that you know the products or services that your business will provide it’s time to do some research. Identify your target market and be specific with this step. You want to define the age, income, gender, and interests of your target market. Analyze your competitors, and discover potential opportunities and threats. During this step, you are going to want to create a SWOT analysis for your business. SWOT stands for strengths, weaknesses, opportunities, and threats. This research will you fine-tune your business plan and understand the needs and preferences of your customers.
Step 4: Organization and Management – Your Dream Team
Introduce the brains behind your business, this might be a team or just you. During this process, you want to outline the skills, expertise, and how their/your roles will contribute to the success of your business. If you are looking for investors they are going to want to know they’re putting their money in capable hands, so make sure to highlight your strengths or your team’s strengths.
Step 5: Product or Service Description – The Heart of the Matter
Get down to the core of your business by providing a detailed description of your products or services. Explain how they meet the needs of your target market and what makes them stand out. Remember you determined some of this already in Steps 1 and 2. Remember to be clear and ensure that your readers can understand your product or service. Explain it the same way you would to a 5-year-old before you write this area of your business plan.
Step 6: Marketing and Sales Strategy – Spread the Word
Now that you have determined what your awesome product or service is, you have to shout it from the rooftops. Develop a comprehensive marketing and sales strategy that outlines how you’ll promote your business, reach your target audience, and ultimately, make those sales. If you need a marketing template you can grab the Marketing Pro Template that is in my shop.
Step 7: Financial Projections – Show Me the Money
Just like in the Jerry Macguire movie, you are going to want to share with your investors and yourself how you are going to make money. Create realistic projections by outlining your revenue streams, expenses, and break-even points. Be honest with yourself as you are determining your financial projections.
Step 8: Funding Requirements – Ask and You Shall Receive
Whether you’re seeking funding from savings, investors, lenders, or even family and friends, clearly outline your funding requirements. Determine how much capital you need, how you’ll use it, and what investors can expect in return. Transparency builds trust, so be upfront in this area of your business plan.
Conclusion:
You did it! You determined what your products or services are, your target market, how you will market your business, and the money that you will need to get started. Remember that the business plan is your roadmap to success and doesn’t mean that once you create it, you should forget about it. Good practice would be to revisit your business plan every quarter to determine if your business plan still fits your business. You might need to make changes to your products or services based on your consumer’s interaction with your business. You might need to update your marketing plan as you find strategies that are working for your business and strategies that didn’t work. Lastly, your financial projections might change based on the revenue and costs that are occurring.
Your business plan is never a set-and-be-done project but a working document that is subject to change as you grow your business plan.
Now that you have created a business plan, you will have an easier time creating a pitch deck for possible investors or applying for a grant. Happy business planning!
P.S. You can find a business plan and marketing plan template that you can download and complete on your own or during a coaching session with me. Just head over to Elizabeth Consulting Services Shop to make a purchase!