Most people I know look at business planning as a very time consuming and cumbersome process. However, believe it or not, this entire process has determined viability of many a venture. When you start putting your ideas into words, the process of execution of your business begins to shape up and thus shapes up the aspects of execution of the idea that you might have overlooked while cooking it up.
I would recommend this exercise to whoever wants to execute an idea. It is time very well spent.
The science of business planning is simple. Take a few hours off your busy schedules and just focus on what you are trying to build. As you focus, these are the basic classifications of thought that you will require to gather Start with the two steps below for today
a. Executive Summary.
This will be the last section that you will write. It will not be more than 2 pages but once you are done with the rest of the sections; this section will be really easy to traverse. You will be able to explain the fundamentals of your business, what would your products be, who will your customers be, who will own the business and why do you think it has a future.
All you need to be here is enthusiastic, professional, concise and complete.
b. Company Description
This is where you will start your focused writing.
What is the mission of the business you are trying to build? The reason for its existence and what the business focus would be? Will your business cater to a customer satisfaction goal or will it be a benchmark in industry breakthroughs. Making sure such a statement is incorporated in your business plan is extremely important.
You also will need to be clear on who are your products and services intended for? Who are these people? What are their specific age groups and backgrounds or locations that make your products desirable to them.
What is your industry? Is it a growth industry? What changes do you foresee in the industry, short term and long term? How will your company be poised to take advantage of them?
What are the core strengths of your company going to be? What could be perceived as challenges and weaknesses?
What background experience, skills, strengths do you bring to the venture?
This is perhaps a very important function of your set up. What will be the structure of your business? Will you run it alone or will you have partners?
How will your partners contribute to the business? Do you have agreements with them? What kind of a set up are you geared for - a sole proprietorship, Partnership, Corporation, LLC?
All these will need to answered before we move to the next phase of business planning which will be to describe the core of your business- Products and services.
Should you have any questions about this part, feel free to write to me, comment or start a discussion.