Following on from my last blog post about starting a new business, this blog now concentrates on one specific point which was raised in that blog – the business plan. The article “3 steps to the ultimate business plan” can be found by following the link http://bit.ly/1E3lAnm. Even though the business plan contains a financial section and revenue and costs are important, there are other parts of the business plan which must be considered in order to prepare the ultimate business plan. These include:
1. Considering the risks
2. Knowing your product
3. Ensuring the plan is clear and concise
Considering the risks
Often products are designed by the inventor because they feel there is a need for a product which helps them. They do not consider that the product may be perfect for them but imperfect for everyone else. Therefore it is worth conducting some market research to see if the market will buy the product. If the buyers are not rushing in to buy the product then there may not be a need for the product in the market or it may need to be tweaked.
Knowing your product
This is about knowing your market and how your product fits into the market. You also need to know about prospective buyers, your competitors and how your product will be priced in the market place.
Ensuring the plan is clear and concise
Always include an executive summary which summarises the plan and the financial data. If potential investors are turned off by the executive summary they will never read the rest of the business plan which should be clear and concise.