It is important to take the ideas in your head and get them down on paper. Most successful businesses offer a new product or service or fill an existing niche in the market. Whatever your reasons may be for starting a small business, make sure to clearly and concisely put them in writing.
It can be helpful to go through many drafts or
iterations of your business plan.
Include as many details as you can in your business
plan. Overthinking the details is never as damaging as ignoring the details.
In your business plan, you need to identify who you
think will buy your product or service. Why would these individuals need or
want your product or service? The answer to these questions should help to
determine all other aspects of your business’ operations.
It can also be useful to include questions in drafts
of your business plan. Identifying what you don't know is as helpful as listing
things you are sure about. You do not want to present a business plan with
unanswered questions to potential investors, but laying out relevant questions
in your initial drafts will help you identify questions that require answering
in your final business plan.
Here, it useful to ask questions of your service or
product. For example, you may want to ask questions like, does my
product/service appeal to younger or older people? Is my product/service
affordable for lower-income consumers or is it a high-end purchase? Does my
product/service appeal to people in specific environments? You won't be selling
many snow tires in Hawaii or beach towels in Alaska, so be realistic about the
appeal of your product. How will your product or service generate money? How
much money will it generate? How much does it cost to produce your product or
service? How do you intend to pay operational costs and employees? These, and
others, are critical question you need to answer in planning your small
business’ financial future.
All successful
small businesses need to grow their customer base and production capabilities
over the first few years of operating. Make sure you have identified how your
business can and will respond to growth potential.
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