HOW TO ASSESS YOUR COMPANY’S PERFORMANCE USING THE BUSINESS PLAN
A business plan is important for every business as it contains marketing techniques, strategies, financial forecasting, and sales techniques.
A business plan is not only necessary to get loans for your startup but to improve the business at large. A business plan is important for every business as it contains the marketing techniques, strategies, financial forecasting, and sales techniques that will help to increase business profits.
Writing a business plan is a serious task that requires concentration and time. Due to how serious it can be, some people are called business plan consultants. Their fees are high because of the nature of their job. Different factors can influence a great business plan. However, a good plan will help to;
- Be sure about the business idea
- Realize the possible problems the business may face
- Know the objectives of the business
- Have a track record of the progress of the business.
What should my business plan contain?
Hence, there are important entities that make up a business plan. They include;
The executive summary contains a brief description and highlights of what the business is about. This part of the business must have the exact details but be short enough so as not to discourage a possible investor. Hence, it needs to be short, detailed, and concise.
It also has major highlights that describe the services and products of the business. Also, some features talk about the return of investment, profits, sales, and flow of cash. It must also contain the requirement an investor needs to know if they want to contribute to the business. Also, It begins with the current state of the business and its past achievements.
It is important to note that this section must be properly done because it determines if anyone would be interested to keep reading the business plan or not.
Description of the business
This part contains important business details. It is different from the executive summary as it contains a detailed analysis of the business. Also, It should begin with the different eras of the business – events of the past, activities of the present, and the plans for the future.
It should contain the major interactions of the business and the new people that are under consideration. If the business product is still under development, it should be described so that the investor can have an in-depth understanding of what your business is about.
The description shows the structure of the business, its hierarchy, and its places. Also, for clarity purposes, one should include the legal approaches of the business.
This section of the business plan begins with sufficient research. The research covers the marketplace and the necessary strategies to survive the market. This knowledge gives the business owner the idea needed about the market and how he can take full advantage of it.
It helps to know areas of strength and weaknesses to create a system that identifies threats and opportunities. Its studies help to create strategies that can predict the price of products and services.
Pricing and Distribution
Pricing and distribution must be clear from the business plan. The pricing may not be fixed as there may be different conditions that can influence the price of a business. However, the description is needed to explain the different suggested prices and their details.
If there is a need to lower the price, this is what we can do as a business to not run at a loss. On the other hand, if the price of the market is high, what can we do to ensure consistent sales? All these are important details of this part of a business plan.
Distribution on the other hand details major customers that patronize the business at the moment. One can also include the plan to reach possible customers if the business is yet to be launched.
The analysis is to study competition and be sure what its competition prowess could be like. Competitive analysis helps to know how to tackle competition and survive in the marketplace. It helps to highlight helpful measures that would help achieve great success in the business.
You can determine your company’s performance and assess how well you have been doing as a business owner. Speak with your consultant to know areas that may need improvement. You can know more about it here.