Importance of a Business Plan

Importance of a Business Plan

Doing a business plan or business plan becomes important when starting a business. Because, the possibility of failure is very large, if there is no good planning. Especially if the business started has many competitors.

Business planning is not influenced by the size of the business. No matter how small the effort, there still must be consideration and planning in getting started. This plan is not just in the mind or just spoken, but must be made in written form. This will be a guide in running a business.

But in reality, many people fail in making business plans. I suggest if possible, it never hurts to use the services of consultants. But it must be adjusted to the business that will be initiated, because it requires additional expenses to pay for the services of the consultant. If it is not possible to use the services of consultants, you can learn more deeply about the business or business that will be cultivated.

There are various aspects of a business feasibility study. Among the level of benefits to be obtained, the possibility of business continuity, as well as the target market share. These things are used to make decisions whether a project or business can be done, postponed, or not run. Someone said that they had to understand the location of their business. The location does not only talk about the place, but also its market share. The possibility of business continuation must be considered. Don’t let the business only run for three months. This is what must be considered.

Business feasibility studies are very important research to do before a person or group of people starts a business. It also intends to avoid the risk of loss, facilitate business planning, business implementation, and control and supervision.

In business planning, there are several things you can do. Among them:

* Business Description

You must understand the ins and outs of the business that will be undertaken. This business description can be from the form of business that you manage or the products or services that you offer. In addition, this description also describes a description of the price of the product or service, operational costs, business targets to work systems that apply to the business that you manage.

* Competitor Analysis

After you finish compiling a description of your business, do a simple analysis of the business competition that you manage. This is to find out the weaknesses and strengths of your business competitors. Also determine whether you want to be a Market Leader, Market Challenger, Market Follower, or Market Nicher. If you want to be a leader, there must be something new and different from the existing ones. Usually this market leader is a business or business that has developed rapidly and has a name. Meanwhile, those who are market challengers are usually under entrepreneurs who are already market leaders. For example the market leader trying in the SEO field he also sells the same product. If you want to become a follower then try to put a position parallel to the others. For example, LinkHelpers Phoenix SEO Company, they also participate in competing in the SEO business. While for the market nicher is looking for the smallest segment, then he must be able to find a gap whether he can still get profits from the business that will be pioneered.

* The Right Marketing Strategy

The right marketing strategy must be able to adjust to the product or service you want to offer. Make it as attractive as possible. If you use social media, then make sure that the target consumer really does not exist, a shadow buyer. Shadow buyers mean the assumption that there must be someone who buys but doesn’t know how many people are, and where buyers come from. It is better to predict the market share of the product or service. For example, when you want to sell fried bananas, predict which people will be targeted, whether the population is around, how many bananas are sold every night.

*Preparing Financial Statements

Make financial reports both issued and income. For example, in the sale of banana fritters, also assume how much production will cover the capital, until it is worth profit.

* Maintaining the Quality of Products and Services

Continue to improve the quality of products and services. Do not be easily satisfied with the initial results, because this will be a challenge to maintain and improve it so that the business is still going on. Get used to receive advice from consumers. >

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