Having a good business idea is necessary if you want to succeed in an entrepreneurial journey. Many can generate business ideas but not so many can have a well-defined idea.
The business plan, the starting point.
It is important to emphasize that the business plan is the starting point for what will come next, that is, the execution of the plan. Therefore, it is essential that the business plan is well written.
It should be written in such a way that everyone can come to the idea clearly, although it is not as easy as it sounds “thanks” to the various methodologies that can be used.
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There are different models to follow, although, in our humble opinion, the most appropriate today is the following:
Business Planning in 8 Steps.
This method tries to clarify the business idea through the 8 steps that we defined below:
Step # 1: Business Concept: A general description of what your business is. What are you going to do? What will you sell? How are you going to achieve your goals?
Step # 2: Value Proposition: This should describe what your company is going to offer and why it is different from what already exists in the market.
Step # 3: Business Model: Explains the business model of your company and how you will develop it, what services and products you will offer and how they will be placed on the market.
Step # 4: Competitive Advantages: Explain what makes your company unique. Are you offering something that does not exist? Is your company different from the competition? How are the prices of your products or services?
Step # 5: Sources of Income: Your idea is turned into business for one reason: to be profitable. Explain how you will generate income and sustain it through various channels, such as direct sales, licensing, etc.
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Remember, this is the point where economic sustainability is tested against potential investors, something that will gain or lose interest.
Step # 6: Customers and Markets: Who do you want to sell your product to? Is there really a market for your product or service? Define a target market and understand how your prospects behave; Knows their buying patterns.
This step is also important to justify what you defined in the previous step. Remember, to define a market, it must be achievable, sufficient and financially attractive.
Step # 7: Finance: Here you must reflect the economic resources that your company needs to be successful, to develop and to sell. Although it is not necessary at this time to do a great analysis of costs if you can reflect a general idea of the costs that the company will incur when it is operating in its different stages.
Step # 8: Team Experience: Business ideas are great, but a team that is able to execute them is priceless. It explains what the team has to be able to generate growth in the company.
Fact # 1: It is not possible to create a perfect business plan on the first try.
Once we have this clear, you need to be flexible and treat your business plan as a journal – update it regularly, including any changes and defining your goals dynamically.