With a new year on the horizon, it’s only natural to think about new beginnings. And what better New Year’s resolution than to turn that great idea you’ve been toying with for months, or even years, into a business?
Building a business is hard work, sure, but few things can beat the satisfaction of seeing your idea grow and become successful.
But first, you need a solid business plan.
Here’s how to go about it.
Why You Need a Business Plan
Unless you’re fronting your business’s startup costs out of your own pocket, you’ll need to get some funding. Unfortunately, no one’s going to give you their money if they don’t know how you plan to make your business financially viable.
However, a business plan isn’t just a fundraising tool. It helps you understand how your business is put together and identify any weak spots. Writing it down also forces you to remain accountable, which increases your chances of success.
What Should You Include in Your Business Plan?
A business plan is your vision for your business’s future. It can take many forms, from that paragraph you scrawled on the back of an envelope to those thick documents in corporate boardrooms.
However, it’s always a good idea to include the following elements:
The basic concept
This is where you flesh out your idea. Questions you’d want to answer here include what product or service you’ll provide, how you’re going to provide it, and who your target customers are.
Once you’ve established what your business will do and what you want to achieve, it’s time to set some targets. What specific actions will you take to move closer to your business goals?
Your competitive advantage
You need to persuade your prospective customers that you’re the only one who can satisfy their needs. Unless you’re clear about this yourself, that’s going to be tough.
Think carefully about what everything will cost and how much revenue you think you’ll earn. Be conservative, so you’ll avoid nasty surprises. Besides startup and other running costs, you should also budget for unforeseen expenses.
Do you need help drawing up a business plan for 2016? Contact Bosserman Law at (662) 890-9558 to set up an appointment.