Business writing your business plan 4 steps you should take beforehand Writing a business plan is a key part of setting up any type of business. The act of writing the plan is itself important because it helps to clarify your business vision, see details you’ve never considered before and optimize your approach to ensure the success of your business. Still there are a few things you should do first before setting out to write it all down. Here are 4 key steps you should take before crafting your business plan. 1. determine your purpose What do you want to achieve with your business plan? You’re probably looking for funding opportunities, so your business plan will become a tool in meetings with potential investors and stakeholders for showing how your organization plans to make profit. It’s important to think about profit right from the start and a business plan will help you to clarify your revenue strategy. Before drafting the plan itself, think about your business in more abstract terms. Why does it exist? What are its guiding values? What does it stand for? How will it be represented by its employees? Identifying the core purpose and value of your business, you’ll give yourself a compass for decision making at all organizational levels. One way to get all this information is by having a long, honest conversation with your team. 2. clarify your business model Before you compile and analyze all the facts and figures that will determine the financial projects you plan to include in your business plan, you should take a moment to test your business model against different potential scenarios. “What if ” questions are key at this point. Ask yourself what rates of return you’ll get if you sold your product at a specific price point and the client acquisition cost would amount to this much. Consider as many details as possible – among others, you should think of aspects such as cost of acquisition, hiring, pricing, sales, expenses 46 WomanToWomanMagazine.com
30206FR
To see the actual publication please follow the link above