Did you know that over 20% of businesses fail within their first year of opening? The reason for closure could be from a lack of financing or lousy marketing.
However, another essential factor in those companies failing is their business plan. For any entrepreneur looking to branch out on their own, writing a business plan is vital.
It’s the skeleton that gives your company some structure so you don’t get lost along the way. If you don’t know where to begin, here are eight steps to help you with your startup business plan.
1. Compile A Business Model
When writing a startup business plan, the first thing you should do is create an executive summary of your company. You can keep it brief, maybe a paragraph or two.
But if you want to go more in-depth, it can be a page or longer. In it, make sure you include:
- General details about your company
- A mission statement
- Financial goals
- Projected growth
- Description of your products/services
Having these facets of your startup strategy down on paper will make it easier to execute any ideas you may have. Without any direction, you will have a more challenging time knowing where you should begin.
2. Create a Company Description
In this section, you can dive further into your company’s background, history, and future structure. It provides investors with an overview of what they should expect by teaming up with you.
You could also talk about your potential plans to facilitate your company’s growth. The more information you have, the more apparent it will be for those interested in your business.
3. Doing Market Research
One of the most vital elements of a business plan is market research. It’s an in-depth breakdown of your company’s viability and potential profits in a particular area.
You can break market research down into two components: primary and secondary. Conducting primary research may include doing telephone interviews or online surveys with random members of your target group.
Secondary research can be in the form of reports about your industry from third-party sources like blogs or other organizations. Some questions that can help your market research include:
- What kind of customers are you targeting?
- What are they buying now?
- What will they gain from buying from you?
- How do you get them to purchase your product?
These questions are merely suggestions. But they can help with creating a marketing model for your target customers.
4. Marketing Execution
Marketing is always a challenging task for startup businesses because you need to create an impactful approach to new customers. Some aspects your marketing strategy should include are:
- Your company’s mission statement
- A comparative analysis of competitors
- Various advertising strategies
To find out how the best marketing works, try enlisting the help of a marketing service. With their expertise, you can develop a top-notch marketing strategy for your company.
5. Decide on Long Term Goals
Half the battle for any entrepreneur is getting their company off the ground. The other half relies on creating a model to sustain a certain level of positive production, which is where long-term goals come into play.
No matter what your business model is, always plan out your long-term goals. The time frame should be roughly around 3 – 5 years or more.
The purpose of these goals is to help you predict your company’s growth as the market changes. You may decide to implement new business strategies or develop a new product in conjunction with the times.
To plan your long term goals:
- Think about your current position
- Consider how you want to increase your visibility
- See how you can use social media platforms
By having these goals set out, you’ll have a foundation set for the moment your business goes past certain milestones. So instead of rushing to develop a new plan, you can edit the current one and adapt accordingly.
6. Build a Successful Team
As the saying goes, “There’s no ‘I’ in team,” and that’s especially important as you’re looking to grow your company. Although you may have started it yourself, you will need help to enhance your business’s notoriety.
To do so, you’ll need to build a successful team. How do you that? You can:
- Hire the right staff
- Be clear about what’s expected
- Have strong team culture
These are a few parts that anyone looking to join your company will be curious about. The more specific you are about your team-building goals, the better chance you have at landing the right partners to enhance your business.
7. Figure Out Your Finances
Before beginning any endeavors with your company, you’ll need to figure out your business’s profit potential and financial needs. If you don’t have any sources to draw from, you can:
- Compile a list of estimated startup expenses
- Predict quarterly and yearly revenue streams
- See who’s interested in supplying a credit line
It will be tedious work trying to compile all of the financial aspects of your company. But with a solid understanding of your financial situation, you’ll save your company from going bankrupt within its first few years.
8. Adding an Appendix
At the end of your business plan, consider adding an appendix. It’s not a requirement, but it could help your case if you submit it to an investor.
Make sure to include any business permits or licenses that you may have. Also, be sure to add any pictures of your products, extra market analysis, and key team members in your appendix.
A Startup Business Plan Is Essential For Your Business
As you can see, having a startup business plan can help map out your company’s future. Instead of winging it, you’ll have structure every step of the way to ensure your business’s success as it grows.
To learn more about other facets of running a successful business, check out our other blogs for related content.