Create a business plan
...nd then, if they're interested, go on to other sections. You'd be smart to write this section last, after you've thought through and written everything else. It will be a lot easier then. Industry environment Step back and think about what first sparked your enthusiasm to start this business. You must set it up so that someone who has no notion of your field or industry will understand why you're jumping in. This section should also include: • A description of any significant trends, industry innovations, or big players in the market. • A summary of the current state of your industry and its future. This is a positioning overview that covers the market's driving forces as well as current and future opportunities. You're creating a map so that you can show where your idea fits in and why your company fills a gap or a need. • Details of your business's target customers as well as your strengths in the marketplace. • A company mission statement, if you have one. Marketing Your marketing strategy is the heart of your business. Without a marketing strategy, finances fall by the wayside. How can you make money if you don't know how to sell your product? Who are your customers? How will you find them? How much will it cost to acquire and service them? Your marketing plan should include: • A summary of your market position and goals. • Your market objectives. Specific targets are more effective than vague announcements: "We will sell 150 widgets by the fourth quarter" is more convincing than "We will own the market in widgets." • Your target markets. • A strategy for each segment or market. • Marketing expenses and resources, and how they will be allocated. • The marketing channels you plan to use, such as e-mail marketing, radio ads, or highway billboards. • Competitive scenarios. What are your moves if, say, a competitor lowers its price as soon as you launch? • Communications strategy. Set up benchmarks to show when the marketing pays off. Connect the dots with the sales staff. • The implementation or marketing calendar. Plans are great, but if you don't also designate responsibility, set deadlines, and hold people accountable, marketing efforts will fail. The marketing section should detail the results of the customer or market research that you've done and explain what you foresee as difficulties in getting into the market (sometimes called "barriers to entry"). You want to answer some key questions for readers and investors, including: • The size of your market. • The percentage of the market (be realistic) that you intend to target. • The cost to reach this target. Do you have any special marketing advantages to offer, such as guarantees or distribution rights? Be sure that you cover those as well. Operations This is your tactical section. You need to provide details about: • Office or facility requirements. • Equipment needed or manufacturing capabilities. • Human resources (staff and contracted or consultant). • Systems for getting your idea up and running. • Inventory control or quality assurance processes. • The kinds of operation funds that this will take, including: o Rents o Leases o Licenses o Registration o Production costs • A floor plan of the space you've chosen, if your business is a manufacturing...