Once you have your idea, and you have done your research to learn if your target market would want it, it is time to begin planning the future of your business and how you see it working.
There are two things to remember about a business plan:
- It is how you set sail. It is how you map out the goals and objectives that you want to accomplish with your business.
- It is how you keep on track. It is your way to be clear on what you are trying to achieve by going back to this document at any stage. It is also a good way to learn how much has changed in your business and why that happened.
It is very difficult to get anything done without a plan, and your business plan is the beginning of every other strategic document you will create in order to steer your business into the future.
So what is in a business plan?
Essentially a business plan is very simple. All you are doing is setting out in detail what you are selling and how you plan to sell it.
There are different sections of the business plan for each both of these questions.
What Are You Selling
- Executive Summary
- Business Description/Overview
- Products and Services
- Industry Overview
How You Plan To Sell It
- Market Strategies
- Competitive Analysis
- Operations and Management Plan
- Financial Factors
We cover all of these in the next section, but it looks a lot more complicated than it actually is (depending on the industry that you are in).
What we suggest is that you look at your business plan as the backbone of your business. Without it you would have no direction and no way of ensuring success for yourself as an entrepreneur.
Did this help you better understand what a business plan is? If not, ask any question you might have in the comment below.