A. Make market research
What would be the point of sale of audio cassettes in the era where the mp3 and iTunes are part of everyday people? That would earn you sell ski equipment in a country where it never snows. To succeed in business, one must respect the balance between supply and demand. It is useless to offer products which will never have takers. If nothing comes out of your stocks, nothing enters your boxes and your project will run to its failure. The business plan will allow you to study the market to identify their needs and prevent you from thinking instead of your customers.
B. Develop a coherent action plan
The action plan is the cornerstone of your business plan, it will appear in a table allowing you to itemize all possible actions. Your action plan will be a tool that let you attach month by month your marketing objectives, sales, HR, and finance. To attract potential partners, it will be in your interest that your action plan is consistent. The consistency of your actions give credibility to your project in the eyes of bankers.
C. Check the consistency-man project team
Never forget one thing: investors seek above all to invest in an entrepreneur or entrepreneurial team. Therefore, you will demonstrate your business plan, the consistency between the project team and the founder. Why is this the right team to carry out the project? What past experiences show that you reach your goals? You know your market?
3. The business plan: control risks
Ultimately, writing a business plan you are looking to reassure investors and bankers. You must be able to have a critical look at your project and present potential risks based on your business (A) and to provide for correction planes (B)
A. Assess risks
In entrepreneurship, zero risk does not exist. The advantage of writing the business plan is that you will be able to identify any more or less predictable risks that could affect the outcome of your project. These risks may be: Difficulty in recruiting qualified staff quickly longer payment Delays Paying the Price An increase in the cost of raw materials Etc
B. Provide corrective plans
In trying to avoid a risk, you may create more. You have different organizational risk inventory and you decide to hire someone else. Except that without knowing you have just created another financial risk. This is where the business plan will help you avoid the worst. The business plan will help you develop thinking criteria allowing you to correct your course of action without you away from your goal. The aim is to identify risks and propose actions if the identified risk occurs.
