The addition of a product or service is recommended to you if your panel finds it economically viable. It requires time, effort, and money. Well, we will not talk about the necessity or suitability of your product addition, in this blog. In its place, we want to discuss the technicalities of a business plan when it is made for the concerned purpose. Before knowing the details, you need to determine the type of project you are going to write for your product or service. Business plans are written to fulfil a common objective, which is well-known to all of us. It mainly highlights purpose, structure, market scope, and cash flow projections of an industry.
There are three kinds of business plans; i.e., mini plan, working plan, and presentation plan. The mini project is a shorter in size, up to 10 pages. It is a great weapon for exploring a new concept or presenting a brief explanation of a full-proof plan. The working plan can be regarded as the full version of the mini-plan. It doesn’t make emphasis on appearance. It is a widely preferred version. Used by the individuals, the presentation-plan emphasis on marketable presentation, proper business language, and terminology. The owners utilize it as a reference. Understanding the basic structure and elements of the plan is the next thing you are supposed to do in this regard. The core elements include seven things which are listed below.
1. Executive Summary
2. Company Description
3. Products or Services
4. Market Analysis
5. Marketing Strategy
6. Management Summary
7. Financial Analysis
8. Customer needs & preferences
9. Buying capacity & behaviour
10. Market demographics
Appropriate formatting and arrangement of all your documents are the next set of things you are urged to do. Do not forget to write your company description in the beginning section. It should include a business description (type, location, customer, etc.), marketplace identification, and product/service. It is not possible to make a small business plan without doing a detailed analysis of the market. You should know about your target market. These are the essential ingredients of your market analysis.
1. Who are your customers?
2. How bulky is the supply availability?
3. What is the location of your targeted market?
4. What is the demographic of your targeted market?
5. What are the projected future movements of your targeted market?
6. What are the available substitutes of your product/service?
7. What is the current demand volume of your business?
8. What is the average financial capability of your customer base?
9. What is the buying behavior of your targeted market?
10. How large is the targeted market?
Describing your product or service is the most important part of your job. You need to be more focused in describing your product or service. Also, discuss the uniqueness of your offered item. Means, how your proposed product or service benefits its end consumers. This section also demands manufacturing prototype and life cycle in detail. Raise your funding request at the end. Speak about the amount of money you are willing to get for the enhancement of your small business. You can provide an itemised summary of how the cash is likely to be used. It is suggested to give a timeline for your funding request. It will make your appeal heavier and easy-to-understand. In case, you are facing difficulties, hire a lawyer or an accountant. Obviously, an experienced professional is more preferable when it comes to financial matters. It is good if your mention your projected cash flow for 5 or 6 years. Putting a ten years’ timeline is, however, the best way to get instant cash.