A business plan like any other written can be good or bad. And if you want to know the difference between a good business plan and something that can be mediocre or even bad, read on. But first of all, let’s start by giving everyone an idea of what a business plan is.
As it is implied, a business plan is a document that specifies and analyzes the following:
• Nature and identity of the company
• Your goals and the purpose of your existence in the world of consumers and entrepreneurs.
• The products you sell and offer
• Your marketing strategies
• The goals you plan to achieve
• Your niche: the market you plan to conquer.
• Your plans for the future of the company
• And, of course, your financial situation before you start
By having all that information, you can see that a business plan looks a lot like a blueprint that will help you or anyone to start and run a business, regardless of its nature.
Now that you realize its importance, the next thing you should start working on is learning how to make one. But before you have the urge to get your computer up and running and start typing, these are the qualities of a good business plan to consider.
1. A business plan must be detailed. When listing your products and services, for example, you shouldn’t stop simply by listing them. You should also write the descriptions and scope of your products and services, touch the production base, and identify the means on how you can market your “brain child” in your target niche.
2. It should include market research that identifies your competitors, their market share, and the range of products they produce. By learning how they run their operations, you can learn tricks of the trade in the business you want to enter, and you can also have a foundation on what you can do to excel.
3. You should have a list of everything you need. Note that the word everything here includes the equipment, technology, raw materials, financial and other resources that you may need when starting and running your business venture. Having all of these listed will give you an idea of how much capital you need before you start and how much money you need to make in one day for your business to survive.
4. It should also be written in a formal style and format. You must remember that a business plan is something that you must present to your business partners, finance companies, and banks. So if you can, refrain from using jargon anywhere in your plan.
5. Finally, a business plan must be free of errors. This is important because your business plan defines who you are as an entrepreneur. If it was sloppy, then that doesn’t speak highly of you.
Again, those are five characteristics of a good business plan. Now that you know them, you can start your research and start writing your article.