8 Reliable Tips on Business Planning for First-time Entrepreneurs
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Traffic is getting worse; the internet is creating opportunities. Think of the possibility of not commuting as often and running a shop from your laptop at home or any place convenient.
Indeed, selling online is one of those modern
low-cost business ideas that can generate profit. The devil is in the details
as written out in your business plan. Get dibs into these tips on business
planning to help you turn your idea into a lucrative venture.
Why Do You Need a Business Plan
Business plans never go out of fashion no
matter how digital or fast-paced the world has become. Your hard work in doing
business or managing your commercial affairs is grounded and made realistic
when you have a detailed map that gets through from Point A to B.
This business plan:
Gives structure and direction to
your visionCommunicates this vision
effectively to investors, clients, and customers Guides you throughout the
business, allowing you to reflect or revise as you go
Are you new to business planning? Let’s begin.
1. Take time to create your
business plan.
This document lays the groundwork of your
venture and is as detailed as possible. It should answer all the relevant
questions, mainly how you will make money from the business. And if you are to
present your plan to your audience, it should answer what’s in it for them.
Expect the exercise of writing your business plan to take time because you will do the market research and analysis for your numbers and statements. Work on the substance and the format.
2. Set specific goals within a
reasonable time.
You are a new company so no one can
realistically assume that you can make money from a few months of operating.
Work with this leeway and set goals for your
business within a reasonable or a more extended timeframe. As much as possible,
break down big goals into clear and doable action items.
3. Be realistic with your
numbers.
Forecasting financials or financial projections are one of the common failings of new business owners. You can learn from other entrepreneurs’ mistake by:
Back your claims with real and
correct data.“Over budget” your expenses to
account for unforeseen costs.Make your projections based on
industry standards.
When dealing with figures, opt to make safe
assumptions. This move will work to your benefit if you perform better than
your projections. Seek the help of accountants on how to crunch and present
your numbers.
4. Polish your executive summary.
It’s the first thing that your intended
audience sees. Write your executive summary such that it is a high-level
overview that encapsulates the critical points of your business plan.
This executive summary is your hook for people
to continue reading your “proposal”. It saves time, too.
5. Come up with a tailor-made
business plan.
In line with point no. 4, prepare tailored-fit
versions of your business plan to your target audience. They are investors,
lenders, or other sources of potential funding.
Because the business plan is essentially your
pitch for them to invest or lend you money, you might as well present it in a
form that appeals to each one of them, their interests and thrusts.
6. Be creative in presenting your
ideas.
Adding visuals can enhance the readability of
your business plan. Insert charts, images, and other graphics to break the
walls of text. Look up templates or take inspiration from sample business plan
formats.
This creativity boosts the appeal of your business
plan that ought to be reliable and credible in the first place.
7. Review and revise.
Your first draft might have missed out on a
few necessary details. Have other people, most likely professionals or those
with experience in business planning, look at your plan for revision or
editing.
Their insights and points might help improve
your business plan, its soundness and feasibility. Also, ask your family and
friends; they might have questions or suggestions that you can add to your
business plan.
8. Explain the process.
It’s not unusual to have a business plan
without an actual product that may be in development. After all, you can
explain the process of how to make, deliver, or sell this product in your plan.
Identify what to sell online and provide detailed descriptions. More importantly, set out how these products fit into the market, what edge they possess over the competition, and what their potential for growth is, among other vital details.
Points to Remember
In business, always have a plan in written
form for yourself and others. Keep the document trimmed and concise, steering
clear of vagueness, fluff, and over-optimism.
It is hard work －putting into the details for your first business plan －but the process can get better when you update your business plan the next time.
The post 8 Reliable Tips on Business Planning for First-time Entrepreneurs appeared first on Entrepreneurship Life.
