A business plan is a formal statement of business goals, reasons they are attainable, and plans for reaching them. It may also contain background information about the organization or team attempting to reach those goals. It is always a great idea to have a plan in place before you get into the actual business. Having a definite plan helps reduce the risk of losing track of the execution process as you progress with your venture. In Yogi Berra’s words,” If you don’t know where you are going, you will end up some place else.” Thus, in order to execute a perfect business it becomes pivotal to have a perfect business plan.
We have tried to enlist 10 most important ingredients that need to be kept in mind while you prepare a business plan:
- People must invest in it: Any idea will become a business idea once you are sure that there will be customers who will be willing to pay for it. If you are sure that your idea will fetch you customers and they will be willing to pay for what you have to offer then you can start working towards it.
- Is there a Problem that you are solving through your venture: Be it as small a problem as a leaking tap, or a dirty carpet that you want someone to fix for you or your friends or relatives or family, there are high chances that there are many more people out there who face the same problem everywhere and want a fix. If you feel that your business will solve a problem like that, then there are high chances that it is worth venturing.
- Business worthiness of the plan: It is always a good idea to assess if the idea that you have will generate the return on your investment. If you are sure that the investments that you make in setting up the business will bear positive returns then it’s time to jump into the venture without wasting any further time.
- Scalability of the idea: You should check if the idea can be systemized, automated or expanded as the customers start showing interest in the product. The entrepreneurs should start planning the scalability accordingly.
- Uniqueness of the Idea: Every business starts with a great idea and its even better if the idea is unique and has not been ventured into previously. A unique idea strikes a chord with the customers easily. A unique idea would also include any idea that can enhance an already existing product.
- Cyber-Traction is the key: In today’s world everything sells base on the cyber-traction that it generates. In the age of e-commerce, it is good to judge the future of your business by checking if there is a positive response from the online customers to your business.
- Vendors’ interest in your business: The best indicator of a business’s potential success is the amount of interest it generates from outside vendors. If you see that your potential vendors are showing interest in your business, then you are definitely on the right track.
- Your idea won’t be duplicated easily: It is difficult to have a business where barriers to entry for others are negligible, but it is always wise to find an idea that is hard to duplicate. Doing this will save you of a lot of competition as you will be the pioneer in that case.
- Recognition: As per Maslow’s hierarchy of needs are gradually defined by the recognition or a feeling of self-esteem that they bring. After breaking even, every business aims to attain a level where it is recognised. Hence, it is always good to have a business plan that can lead to recognition.
- Will it Last: Avoid falling for trends and fads, because those can disappear overnight. If you’re confident your idea will still be the answer to your customers’ problems and it’ll continue to bring in more revenue for your business in all the years ahead, you have a great idea to work with.
If your answers to the above questions are positive, then for sure you have a great business plan to present and work on. So, pull up your socks and draft that perfect plan that will take you to the place where you belong and that we profoundly know as “Success”.