Why Developing a Strong Business Plan is So Vital

  • By: rajasri
  • Date: Jan 01, 2017

Developing a sound business plan is one of the best ways to ensure the success of any new business, explains Rajasri CPA in Toronto in a publication http://www.insidetoronto.com/shopping-story/5914888-developing-a-strong-business-plan-for-success/

Many new business owners think a business plan is necessary only if they are trying to secure financing, but all start-ups should begin with a detailed business plan that will act as a roadmap and define company goals and the path to reaching those goals.

Business plans are a valuable tool for new or existing businesses. Plans for starting up a business will outline key elements like projected sales, costs, expenses and the timing of payments, but they also help determine if your idea is marketable and help keep you focused and on track.

Business plans can help you look at your idea objectively and come up with a realistic game plan by going through SWOT analysis. Typically, a business plan will include:

Executive summary and business overview: The executive summary will outline key points in your business plan, while the business overview includes points like the type of business and its history, the legal structure, the location, who in involved and how you plan to do business.

Industry Factors, Trends & Market Size: Factors and trends affecting your industry, and consider their implications for your business. Estimate your market size. Imagine there is no competition, and customers’ only option is to buy your product or service. How many customers would you have? How much money would your business make?

Market and competitive analysis: It is important to do the research to find out exactly what your target market is and how you plan to tap into that market. You also need to know how much competition you’re up against, and determine how your company will have the edge.

Products and services: Your business plan should detail any products you are manufacturing or selling, and the services you will be providing, with a description of each and how you will produce and get them to the market .

 

Marketing and sales: Outline how you plan on bringing your product or services to the consumer, and include pricing information and marketing and advertising plans.

Break the market into customer segments: Customer segments are the different types of customers your industry serves. Each segment is bound together by buying behavior, needs, demographics, tastes, or other characteristics.

Breaking your market into customer segments will show you types of customers you want to target. What appeals to your target customers, given what you defined as important to them? What sets you apart from the competition? key benefits you’d like customers to value. What is your competitive advantage.

Pricing: Explain your pricing. Discuss how you came up with your prices, and illustrate where they fall in relation to your competitors.

The Team: Who is part of your team. Each person’s special qualification and skills, and state what each person is responsible for in your business.

Financial plan and projections: You will want to refer back to this section of your plan as you establish your business and see that you meet or exceed expectations. It will include the start-up and maintenance costs, business expenses and all financing projections.

Don’t forget to evaluate various risks and make a contingency plan for them.

For more information about developing a solid business plan for your new venture, contact Rajasri CPA at (647) 492-3202 .