Congratulations, you have a business idea that you are ready to take to the next step. Starting a business is an exciting process, but you need to have a plan. Whether you are trying to get financing, or you are ready to get your business started, you need to build a business plan.
We thought this would be a great opportunity to discuss what needs to be in your business plan. With that said, you need to add any details that you think are important. The business plan needs to be all encompassing, and needs to show readers all the details. So, let’s dive right into the details.
The executive summary is built to give a synopsis of the business plan. After reading the executive summary, the reader should be able to know what your plan is.
One key tip that we like to give to clients is to write the executive summary last. Once you have written the entire business plan, you will be able to easily summarize the key points. Ensure that your executive summary is no longer than a page long. By doing so, you can ensure readability.
The business overview is where readers find out what your business is. In this section, you need to provide a business description. Here should be a detailed description of what your business will offer and how it will operate. It is integral that this is readable and understandable as it is the key component of your business plan.
Your business plan is a place where you can tangibly display your business mission, vision, and values. By explicitly stating these things, readers can get a better sense of your business, and the way in which it will operate.
The business overview section of your business plan also requires external analysis. Here you need to discuss the industry and the trends and changes it is experiencing. With that said, if you are operating in a technological way, you are also required to discuss the trends in tech. These trends are important to discuss because it shows a depth of understanding.
The market in which you choose to operate needs to be fully understood. This is the section where you show your understanding and knowledge. Here, it is essential to discuss the trends of the market (Target and geographical markets). By clearly defining your target and geographic markets, you can ensure a proper analysis.
Here you can describe more of the products and services, and how they directly benefit the target markets that you have defined. Additionally, it is key that you discuss your competitors in this section of the business plan. You can do so by describing your competitors strengths and weaknesses, but also going into detail about your competitive advantage and differentiator.
This section is used to show an understanding of the landscape you need to operate in.
Sales and Marketing Overview
Here at Vog, we try to let all our clients know the importance of marketing. While marketing is often a second though for many startups, it needs to be a first thought. Marketing is what creates buzz and generates customers. In this section, you must outline how you plan to market your business.
Your sales strategy is also very important. This is what shows your profitability and proposed success. Here you can outline the customers, explore their journey, and of course, pricing and distribution. It is this section in which you can display your profitability numerically.
This section of your business plan is shorter than the rest. This is because everything in the operating overview can be said concisely and concretely. Here you must inform the reader of the business location, the people operating your business, and the requirements of capital.
Please note that if you are a tech startup, you have to explain your technological requirements. You must explain the scope of your business here.
The action plan is a way to solidify your goals. Here you need to display your objectives. If you want to achieve positive cash flows within the first 8 months, you explain that here. While these goals may change as the business grows and progresses, you need to start somewhere.
No one loves an exorbitant amount of risk which is why you need to develop a mitigation strategy. This is very important if you want to be prepared for risk, that you find ways to mitigate the risk. By being transparent, you can be ready for anything, and have a well rounded plan.
The business plan is the first step to paving a path to success. If you are looking to start your business, start with a business plan.
Here at Vog App Developers, we want to see you succeed. If you have a business idea, reach out to us for a consultation.