Essentials of a Business Plan That a Newly Incorporated Company Need To Know In 2020!
The creation of a company goes hand in hand with the establishment of an efficient and precise business plan. This document represents the company and should make future investors want to contribute to it.
To present a most promising business plan, here are the essential elements that a newly incorporated company must take note of.
1. Executive SummaryA business plan begins with an executive summary typically of about three or four paragraphs with basic information about the business, type of products or services it sells, the status of the business to which it belongs, and future plans. For a newly incorporated company, it must include the experience of the entrepreneurs and the reasons why the company will be successful.
2. Description of the company
This section describes the business objective and explores its elements in greater detail. It includes the concept, the demand for the products and services for sale, customers, and competitive advantages.
The description can span multiple paragraphs, but the shorter, the better. The purpose is for the reader to form a complete idea about the business.
3. Description of products and services
What product do you offer?
What is the need that you cover?
You must know absolutely all the characteristics of your products and their functions. In this way, you will be able to highlight all its characteristics recognizing its benefits and its contribution of value to whoever buys them.
Furthermore, all its features must be available and accessible to all those who are interested in and are potential buyers.
4. Market Analysis
This is a meticulous analysis of the situation in the business sector in which the company is inserted.
It allows the entrepreneur to know all aspects of the market in order to define a target and position the company so that it can achieve more sales.
When researching this part of the document, it is important to seek information on:
- Whether there is sufficient demand for that product or service.
- Type of target audience ideal for the company.
- Expansion or saturation of the market.
When describing the industry, discuss the current situation and the company’s future possibilities.
It is also important to present information about various markets within that specific industry, including new products and developments that can benefit or threaten your business.
5. Competitive Analysis
Competitive Analysis, or Competitor Analysis, aims to determine the strengths and weaknesses of competitors within the market in which you operate.
Also, you list possible strategies and barriers that can be developed to reduce competition.
One way to determine who are the direct and indirect competitors for your company is to make a list of criteria that must be equal or very close for other businesses to be considered your competitors, such as the similarity in:
- Product or service
- Form of disclosure etc.
The idea is that the more similar other companies are in relation to yours, the more direct the competition is.
6. Marketing strategy
What is your marketing strategy?
How do you intend your business to reach its consumers and target audience?
The marketing strategy is an essential tool available to the company to prospect customers and ensure business expansion, especially for ventures that are starting their activities.
What type of media will you use?
What are the behavior patterns of your target audience?
These are important questions, which only a thorough marketing plan can answer. For your business plan to be comprehensive and effective, it is necessary to foresee some aspects of your company’s marketing strategy.
7. Goals and Objectives
After researching various aspects of your market, your company, and the context in which it operates, it is time to list the possible goals and objectives for your business within a specific period.
Objectives such as sales target, desired sales quantity, and communication objectives are defined here.
Based on them, you should set up your strategy and align the next steps.
8. Financial factors
After defining all the steps that the teams must follow in order to meet the goals established within the specified period, it is important to list the resources that must be made available for each listed department.
Charts are very useful in this part of the business plan so that managers and potential investors can have a view of the whole.
Each amount specified for a goal must include a brief description that justifies the amount of money targeted.
Now that you understand the key elements of a business plan, you need to do your homework and gather all the information required to create that document.
A business plan represents the reflection of your company with your future investors. Tweak it as best you can to conquer them.