Your business is a growing, living entity. It breathes. Your choices have a direct impact on whether the business is growing stronger and more established in the community, or whether it is fading away to become a part of the 80% of businesses that fail in those first 10 years. You need to be making proactive decisions that increase revenue and help people to know and understand who you are and what your purpose is. To successfully create a thriving business, there are five main details that you should highly consider adding to your business plan.
1. Simplicity is Vital
When you’re creating your business, or you’re first starting out, you might be tempted to overcomplicate your business plan. Business owners make mistakes when they try to advertise to a wide group of people before they are established as a credible company. Before you widen your services, customers need to know that you’re capable of satisfying their needs. This is why it’s always safer to start off small and simple rather than branching out right away. A perfect example of this is Amazon. When Amazon first became a company, the only sold books online. After they established that they could deliver on their promises and customers learned to trust the brand name, they branched out and now offer almost every product on the market.
2. The Market is More Important Than the Product
When you’re new to the business world, you need to understand that the market is more important than the product. What does this mean? It means that you can’t rely on just your product to drive sales. Your product alone isn’t what will bring customers to your door. But, the market will. When you’re creating a market plan, establish yourself in a niche that customers recognize. You need to market to what they already know.
3. Always be Prepared for the Worst
Though it sounds somewhat cynical, you need to always be prepared for the worst. You need to have backup plans for every scenario so that you know how to make a comeback. This is where incident response comes in. What is incident response? This doesn’t mean that you sit around waiting for something bad to happen. It does mean that you’re prepared for things when they get bad. You should have backup funds available for emergencies only that you can use to avoid going further into a pit of debt when you’re unable to pay bills. You should have a plan on how you will handle letting employees go when the company is struggling. You need to be prepared so that if something goes wrong, you will be able to pick your company back up and carry on without a lot of damage. If you aren’t prepared, things will be a lot worse for the company because the management will be panicking trying to figure out how to deal with the situation.
4. Always Overestimate Costs
This is a vital thing that you absolutely need to include in your business plan. Imagine that everything will cost more than it’s going to actually cost. This will ensure that you have “wiggle room” rather than cutting your budget uncomfortably close. It’s better to have extra money leftover instead of having to go further into debt or having to cut the quality of a product. It’s part of preparing for the worst. Prepare to spend more than you will and you will always be prepared for the worst case scenario.
5. Generate Income as Soon as Possible
It might seem self-explanatory–and it is–but you should always try to generate actual income as soon as possible. Income is the blood that keeps a business alive and the sooner you can get that blood flower, the better it is for the company. You can do this through pre-orders, deposits, and a variety of different ways.
Incorporating these ideas into your business plan will help your business to flourish and become successful faster. Your business will become more established in the area, and you will earn the trust of your customers.
by: Dennis Hung5 Necessary Details to Include in Your Business Plan