Do You Have These Essential Aspects in Your Business Plan?
Every day a number of startups pop up on the radar of economic activity, but many fail to fulfill their potential or even survive. The difference between having a successful business entity and a startup that failed to lift off is linked directly to adequate planning. Startups and smaller business entities that plan well increase their chances of being successful compared to ones that jump the gun without a clear strategy or business plan.
While every business entity, including small businesses and startups, today has business plans in place as part of their roadmap, there are many essential aspects that usually get overlooked.
Here are four such essentials.
Maintain a realistic business plan: The one big mistake a majority of startups commit is to have an overly ambitious business plan. While the exuberance of youth and drive to do something big is a plus, business plans should be made without emotion to maintain realistic goals and targets. Experts suggest fine tuning of the business plan every quarter to realign the business plan in tune with short and long term expectations and goals, as well as prevailing business climate and competitive pressures.
Have area-centric plans: Business plans should be made as per the target audience and geographic demography in mind. What works well in north India may not necessarily work well in the south or outside of India. If your business plan involves multiple regions and demographies, or you are developing a product or service for the global audience, fine tuning the business for each area either sector-wise or demography-wise is a smart move.
Keep the plan work in progress: Many startups and smaller business entities generate their business plan but then do not review it in the short or medium term. An ideal business plan should be maintained as a work in progress document to ensure your business is changing with the changing times, changing trends, and changing economic environment.
A good way to understand if your business plan worked well for the business or startup is to do a retrospective check. For example, once your business crosses the six- to eight-month mark, take some time out and re-evaluate the business plan against actual progress made. This will help you determine whether your business plan was accurate in its projections or not. Accordingly, you can take effective feedback and fine tune your plans for the future.
Focus on presentation of the plan: Angels, investors, and venture capitalists are all part of any startup’s funding plans. Presentation of the business plan should be done accordingly to ensure your plans are laid down in detail for the likely investors to get a pulse of your future projections and planning. A half-baked business plan or one that is incomplete, for example, may be a good reason for rejection of funding for investors. If you are very new or just starting out, ensure you read and evaluate business plans of successful business entities from the past to ensure your business plan covers all essential aspects and elements required.
A business plan is a customized document that is the heart and soul of any business. Ensuring a detailed business plan can help your company achieve its potential even when the surrounding economic factors may not be that favorable.