We put together this short business plan primer, which will act as a guiding force to take you towards your business goals.
Business Type
You should first decide on the type of business you want to start. You can then decide whether it will be a sole proprietorship, a limited liability corporation (LLC) or a limited partnership. Your tax consultant or tax attorney can guide you in this matter. Through them, you will also be able to apply for the various licenses and permits needed to start and run your business.
Your sales and growth goals, along with the planning that will enable you to attain those goals, should be clearly specified in your business plan. You can make several changes to the plan as you gain experience, but a master plan is essential to keep track of your growth (or lack thereof).
Financial Matters
This aspect is very crucial before starting your business. Before you take any step, you need to know whether you will put in your own money, take out a loan from the bank, or try to get venture capitalist funding. You will have to calculate interest on any financing you receive, no matter where it is coming from.
You will not only require initial funding, but also regular financing (cash flow) to sustain you until you break even and start generating a profit. You will have to carefully plan out the tenure of your loan period and how you intend to pay it back.
If financing is a hurdle you cannot overcome, then you might end up losing whatever money you have invested in the business – so think carefully before taking action.
Marketing and Selling Strategies
Once you have decided your line of business and your products and services, you will have to decide on a plan to sell them. You will have to decide on your marketing and advertising strategies, as well as any additional costs that you could incur.
You will also have to conduct thorough research on your competitors, who might also be selling similar products.
When it comes to the competition, you’ll have to study their pricing levels and product quality to decide whether you can stand up to them. The idea is to not just survive, but to thrive in the marketplace.
You will also have to decide on the type of employees you will need and any payments you will be shelling out on a regular basis.
Needless to say, all of this information needs to go into your business plan. Make the plan flexible enough to allow for changes in the future as your business grows.
Tax Strategies
Once you start selling, you will have to refer to your accountant or tax attorney on the procedures needed to file your income tax returns. Once you start making profits, they will be able to guide you to invest your money in a way so as to save on taxes. You will also have to get your business insured against theft, fire and any other possible losses.
When it comes to starting a new business, proper planning is essential. Start with the strategies in this primer, and you will stack the odds of success in your favor.
