Having a well-defined business idea is necessary if you want to have a breakthrough in your entrepreneurial journey. Many can generate business ideas, but not many can have a well-defined one. Just ask around, and you’ll learn that even seasoned entrepreneurs are often having a problem in generating a proper business idea ready for act upon, e.g. in the form of a business plan.
Business plan, the starting point
It’s important to note that a business plan is the starting point for what comes after, e.g. plan execution. Therefore, it’s essential for the business plan to be well-written. If you feel that you need help in penning your idea in the form of a written plan, you can always hire someone to do it, like Business writing service – CustomWritings.com, who can help you craft a well-written business plan.
A business plan should be written in such a way that everyone in your company can get the idea clearly. However, it’s not as easy as it sounds, “thanks” to the various methodologies to choose from.
In my personal experience I have had the opportunity to use different models and there are several that seem good, but for their practicality and proven use, I encourage you to consult the methodology of Colombia Ventures Competition. From my point of view, the methodology used for this competition is very direct and addressed in a logical outline the main points that both an entrepreneur as a potential investor would want to know.
8-step business planning
The methodology intends to address the business idea in 8 steps which I define as follows:
Step #1: Business concept: A general description of what your business is. What are you going to do? What will sell? How are you going to achieve your goals?
Step #2: Value Proposition: This should describe what your company will offer, and why yours is different from what’s in the market right now.
Step #3: Business Model: Explain the business model of your company; how you will develop the company; how goods and services are offered; and how it is to be marketed.
Step #4: Competitive advantages: Explain what makes your company unique. Are you offering something that’s not existed? How is your company different from the competition? How is your product/service prices?
Step #5: Sources of Income: Your idea is turned into business for a reason: To be profitable. Explain how you will generate income and sustain it through various model, i.e. direct sales, licensing, etc. Remember, this is the step where the economic sustainability is proven to potential investors; something that will win or lose their interest.
Step #6: Customers and Market: Who do you want to sell your product to? Is there actually a market for your product/service? Define a target market, understand how potential customers behave and know their buying patterns. This step also important to justify what you’ve defined in Step #5. Remember, to define a market, it must be approachable, significant and financially attractive.
Step #7: Financing: Here you should state the economic resources that your company needs to succeed, develop and sell the product, among others. Although it is not necessary at this time a great cost analysis, if you must have a general idea of the costs incurred his company so far as they are profitable.
Step #8: Team experience: Business ideas are great, but a business team that’s able to execute them is priceless. Explain what the team has that will be able to support the startup growth.
Here’s one fact that you should understand: It’s not possible to create a perfect business plan on the first try. That said, you need to be flexible, and treat your business plan like a diary – update it regularly, including any changes of plan, and define your goals dynamically.
Good luck in your business planning endeavor!