Business Plans Made Simple.
A solid, well-researched business plan is integral to every business venture. It sets the foundation for a growth strategy that will be sure to produce profitability and success, right? A recent study shows that over 80 percent of businesses need well-developed plans before starting. Raphael Avraham Sternberg analyzed the strategies of 312 companies from around the world and found that only 50% were fully operational at the time of his study. The other half still needed to start their businesses!
Sternberg noticed that the most common mistake was not making a business plan in the first place! To guide them, many people can flounder through life with a clear direction. A business plan focuses on the clear objectives of a business, as well as its main goals and strategies for growth. Once One has this defined, one can move forward with The plans to ensure they are completely realistic and achievable.
How to Write a Simple Business Plan;
1. Write the Executive Summary
This is a summary of the business plan as a whole. It should be about four paragraphs long and should begin with an introduction. Include a statement about the objectives of the business, including how it contributes to society and what it hopes to achieve.
2. Give a Brief Overview of The Business Plan
Give a brief overview of the business plan. Include information on the pricing strategy and marketing goals if they are important aspects covered at this point.
3. Identify the Target Market
Next, identify exactly the target market. Explain all the demographics that one needs to consider when marketing the product. Be as specific as possible and include information about their age, sex, income, family size, etc. This is important information because it will help determine which sales strategies are more likely to be effective.
4. Marketing Strategy
Now that one has identified the target market, He will need to decide how to reach them. Begin by deciding on the advertising strategy. He can use a media combination (radio, print, television, etc.) or choose one medium to market the product or service. He can also decide if he wants to use a sales strategy. If so, He can choose to focus on retail sales or try to obtain business customers. If the latter, focus on how one will contact these customers, whether through cold calls or direct mail campaigns, for example.
5. Sales Strategy
Once one has identified the target market and the way it does to reach them, He will need to consider how much one is going to charge for the product or service. Use pricing strategies that relate your price directly to your costs and revenues. One can also choose a “value pricing” strategy where he adds value through customer service or other benefits not included in the price of his product or service.
5. Market Research
One should include a section about market research and determining the best methods to reach potential customers. This information should cover topics such as why people buy from etc. One must work in this area before actually beginning to sell the product or service; otherwise, it will be difficult to identify sales strategies geared toward effectively meeting the customers’ needs.
In conclusion, Raphael Avraham Sternberg believes that when writing a simple business plan, it is important to consider all aspects of the business plan. Ensure it is as complete and thorough as possible to ensure the company’s success. With the right strategy, one can be confident that they are moving in the right direction.