Whether you are opening a franchise or opening a business of your own design, you will need to consider a number of things, including s business loan, design, costs, location, market niche and many others. You can deal with virtually all of these issues with a well-designed business plan. Too often people who write business plans shoot from the hip, thereby creating a disorganized mess that leaves creditors shaking their heads. However, writing an effective plan is not difficult if you follow a few simple guidelines.
Who will buy my product or service?
It may be your dream to own a yo-yo store, but you must be sure there are enough yo-yo enthusiasts out there to support your business. You should have an idea of, among other things, your customer’s average age, gender and economic status.
If you understand your business’s market niche, you are much more likely to create a successful venture. You can analyze your market using readily available tools. Demographic statistics can usually be found on both state and federal web sites.
Who is my competition?
Owning a coffee shop can be a worthwhile venture, but only if your town needs another coffee shop. Too many businesses fail because the market is already saturated. When constructing your business plan, conduct research to ensure there is a need for your product or service.
And even if there is a need, it is a good idea to know who your competitors are, including their strengths and weaknesses. This understanding becomes useful because it helps you decide how to differentiate your business from the others.
What do I need to get started?
Virtually all successful business plans contain an outline detailing startup requirements. For example, you will need to decide how many people you intend to employ and what type of infrastructure will be necessary. This includes things like phone lines, furniture, remodeling costs, and even office supplies. Some of these things are a bit less tangible, like marketing strategies and costs, but they are no less important.
The more detailed your plan, the more likely investors and lenders will take your proposal seriously. You may not have particular numbers for all materials. In that case, do a little research and find out what other comparable businesses required.
These are only a few of the important questions. As you seek business financing, your business plan will be the key to your success, so it is important that you put in your best effort.