A business plan like any other article can be good or bad. And if you want to know the difference between a good business plan and something that can be mediocre or even bad, read on. But first of all, let’s start by giving everyone an idea of what a business plan is.
As implied, a business plan is a document that specifies and analyzes the following:
• Nature and identity of the company
• Your goals and purpose for your existence in the world of consumers and entrepreneurs.
• The products you sell and offer
• Your marketing strategies
• The goals you plan to achieve
• Your niche – the market you plan to conquer
• Your plans for the future of the business
• And, of course, your financial situation before starting
With all that information, you can see that a business plan is much like a blueprint that will help you or anyone start and run a business, regardless of its nature.
Now that you realize its importance, the next thing to start working on is learning how to make one. But before you have the urge to turn on your computer and start typing, here are the qualities of a good business plan to keep in mind.
1. A business plan must be detailed. When listing your products and services, for example, you shouldn’t just list them. You should also write down the descriptions and scope of your products and services, touch base production and identify means on how you can market your “brain – child” in your target niche.
2. You must include a market study that identifies your competitors, their market share and the range of products they produce. By learning how they trade, you can learn tricks of the trade in the business you want to get into, and you can also have a foundation in what you can do to excel.
3. You must have a list of everything you need. Note that the word everything here encompasses the equipment, technology, raw materials, financial and other resources that you may need when starting and running your business enterprise. Having all of this listed will give you an idea of how much capital you need before you start and how much money you need to make in a day for your business to survive.
4. It should also be written in a formal format and style. You must remember that a business plan is something that you may have to present to your business partners, financial firms and banks. So if you can, please refrain from using jargon anywhere in your plan.
5. Finally, a business plan must be error free. This is important because your business plan defines who you are as a business person. If it turned out to be sloppy, then that doesn’t speak very highly of you.
Again, those are five characteristics of a good business plan. Now that you know about them, you can start your research and start drafting your essay.