The business planning process is often what can set a small business on the path to success or failure. A good business plan will consist of how the firm will provide a product or service that is unique to customers, what the product or service will be, why the product or service is better than the competition and how the product or service will meet customers' needs. Getting the answers to these questions from potential customers is just as important as hearing the responses from business leaders. After taking all of that into consideration, the business planning process can begin. Below are a list of inclusions small businesses owners should be sure to have in their business plan.
Who will the product or service benefit?
Every small business starts out with a particular customer in mind, and why they should use the product or service. Identifying a target market will help a small business owner during the business planning process because it will allow him or her to plan the focus of the business around who will use its products and services the most. Taking insights from potential customers will be particularly helpful when determining who will be the target customer.
What will cash flow look like?
While no small business owner will have perfected financial forecasting at the outset of their firm, laying the groundwork for how the cash forecast may look can make a business more attractive to investors. If small business owners are able to make realistic assumptions for their cash forecast, it will not only open them up to potential investors, but it also will give small business owners a better idea of how much available capital they will have to work with. Using forecasting software can help small business owners project what their cash flow may look like six to eight weeks down the road.
What is the main function of the business?
Many professionals in the business world often talk about that "elevator speech," when they have one to two minutes to sum up what their business will look like. This is also an element of the business planning process; small business owners should be able to quickly identify their company's main focus, why the company is important, how it will make money and what is needed to get the firm off the ground. Perfecting this summary can show investors a small business owner is ready to take his or her firm to the next level.
What are the other components of the product or service?
After mastering the elevator speech, small business owners should also be sure their business plan is detailed when it comes to all components of the firm. The plan should include information on how the company will meet customer needs, as well as every aspect of how the business can generate a customer base. Showing a mastery of every aspect of the business will give investors more confidence when dispersing their funds to a small business.
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