No matter the size of your business, every entrepreneur needs to develop and write a business plan. A business plan is an outline that evaluates all aspects of your newly forming business. The economic viability of your business, a mission statement, goals, market, and a description and analysis of your business prospects are all a part of a business plan and a business plan layout.
Quite simply a business plan can be broken into 6 parts; a basic business plan template.
1. Vision & Mission for the Firm: The purpose, projection and performance of your business are created here. Your vision and mission are the basis for what you are doing with your business and products. Business plan software and business plan templates will often have an area for a mission statement.
2. Specific financial goals for the next 12 months: All of the specifics for your finances in the first year of the new business should be mapped out. The business should have a one-year cash flow chart that incorporates your cash requirements. Planning for all financial events is the key to the business surviving. Any business plan layout will incorporate at least one year of financial forecasting.
3. Establishing a target market: The geographic location, ages of your marketplace, the need for your product. Research needs to be made in these areas. A good way to try this is to test and market your product or service before you officially start your business. Try selling some products in test areas first, fairs, exhibitions, trade shows and other locations as this is a great way to feel out your target market and the success of your product(s).
4. Marketing Plan: How will you market your products? Television, storefront, online, catalogues, mailings, telemarketing? Any business plan has a marketing strategy or plan as a part of it. There are so many outlets and your target market will help establish the best way to approach them and sell your product.
5. Risks for the business: With all of the positive energy in forming your new business, you will be left with the need to balance the negatives. What are the risks involved for your business? As the business owner the need to discover and pull the risks to the forefront, are important. Being prepared for as many possible risks and scenarios that your business will encounter will help you to survive its shaky start. The business plan is the best way to discover the challenges to face early, or at least prepare for them.
6. Return on investment: Of course this is the reason you are in business. What will your return on your investment (ROI) be? Knowing beforehand may change your mind as to whether your business idea and product as you intended it will be viable in a real world marketplace. Your business plan will give you a greater understanding of really how much return you are going to make. This will put all of your hard work and focus into a sharper and clearer perspective.
With these 6 basic points you have the essentials of a business plan template. There are many variations and types of business plans. Some companies have used business plan software and found that it has been of great assistance, others prefer tackling their objectives in simple formats, and looking at the overall picture in minimal terms.
Regardless of your choice a business plan is essential and is always useful, even in the senior years of your business. It can be altered to adjust to the current economic climate, and changing products, but it is always a useful and necessary tool for your success.