How Your Business Plan Strategy Can Make or Break your Startup
Business plan strategy is definitely the first thing that would come to your mind when you start your business. It is impossible to run your business without a start-up business plan in place.
Since no two businesses are the same, there can’t be a benchmark in terms of a good business plan strategy. It can only be categorized as what works for your business and what doesn’t. However, the fact stays that your business plan strategy has the power to either make or break your business depending on how much of thought and efforts you have put into it.
You can divide the components of business plan into two parts- those pertaining to the deliverables and those pertaining to its marketing and sales. Companies that write business plans are really ahead of the game when compared to those who don’t have one. However, there are some vital decisions which are a part of this Business plan strategy that determines the fate of your business. These key strategic decisions are almost inevitable and every entrepreneur has to make a choice at the start of their business.
If you are starting your business and don’t end up making blunders in your small business plan, here are few pointers that might help you understand your business plan strategy better.
Decisions in your Business Plan Strategy that can Make or Break your Business
Here are some strategic decisions in your start-up business plan that can neither be omitted nor be ignored and that which would ultimately decide the future of your business.
1. Business Goal
Every business exists because of a particular goal. It is one of the most primitive things about any startup. What can go wrong in that? Everything! A successful startup is one which has the ability to turn heads with its goal. Imagine you are manufacturing a new Smartphone.
How would you tell everyone that your product can be a good investment to your customers and that your business is lucrative for your investors? With so much of competition, you need to be able to strategically place your business in a position that would appeal your investors, attract the right kind of talent pool, and be able to catch the attention of your target audience.
While a compelling goal can give your business the right kind of boost it needs to take off, the slightest mistake will result in complete failure even before the business had a chance to start.
This is again a critical and most crucial aspect of any business. While writing a business plan you need to analyze and pen down your financial requirements and the various funding options you have at various stages. However, while most of you would have clarity on your funding options, only few would have really thought through the various repercussions and impacts of choosing a particular funding.
Apart from the normal day to day expenses, you need to also think about investing in software solutions, digital marketing and engagement activities for the target audience in your startup business plan.
You must also be clear of how much control you want to exert on your company, profits you want to make and the number of people you can allow in your management team.
3. Target Audience
If you have a business, you would definitely have a market in mind. Often, it so happens that you can sell your product to anyone per say. However, it helps if you have a target audience and market in mind to be able to effectively launch and sell your product. It also helps to diversify your business into the crowd.
If you have a target customer base or market for your product or service you would also be able to enhance your brand perception and visibility effectively. However, if you haven’t thought about that yet in your small business plan, you might have to end up spending enormous money on marketing, sales and brand building.
4. Future Growth Prospects
Imagine that you have successfully launched your product and have also got a great response from your target audience. Great news! But what after that?
You can’t just keep making the same thing and expect great sales right? You have to evolve and be responsive to your growing customer’s needs.
From just an FMCG you might have to diversify into something new, from just a media company you might have to give some other solution for your audience. Your business plan strategy must accommodate such growth prospects as well. You need to have a backup plan in case you need to expand or diversify your business in future. If this doesn’t feature in your business plan or if you have an error in judgment here, you might be in for a shock in the future.
5. Gaining Market Share
Consider this; your mother has a piece of chocolates and five elder siblings who already are fighting over it. How would you, being the youngest and the weakest win a piece of it without having to fight? Tricky right?
This is exactly your placement in the market as a new business. You are basically fighting for a customer who is already getting wooed by your competitors. So how do make your offering irresistible? No, it is not as easy as cutting down on the price and yes; you can figure it out if you do your research right!
6. Getting the Dream Team
For all those mouthing a big WHAT! Let us explain. For every new business, getting the right talent pool will definitely be a challenge especially with the tight budget. You need to get out there and spread the word that your business is definitely worth more than a six digit salary which the other companies might offer them. While making a business plan, you need to ensure that you have clarity on how much talent pool you require and how you are going to get them.
A business plan for a start-up business is no child’s play and has enormous scope for blunders if not done with a systematic approach. While writing a business plan strategy, you must be able to plan for the present while taking into account the future growth and diversifications.
Your business plan is not just a plan of action, it is the story you right for your dream business. Now with this clarity, just gear up, write a fabulous story and become an instant hit!
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