9 answers
Abel
Student
Birmingham, Alabama
1
Question
Asked
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How to create a business plan?
How to create a business plan?
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9 answers
Angel S
UI/UX Design Aspirant
369
Answers
India
Updated
Angel’s Answer
Creating a business plan involves several key steps:
Executive Summary: Summarize your business idea, mission, and vision.
Company Description: Detail what your business does, the industry it operates in, and its goals.
Market Research: Analyze the market, target audience, competitors, and trends.
Organization and Management: Outline your business structure, key team members, and roles.
Products or Services: Explain what you’re selling or offering and the value it provides.
Marketing and Sales Strategy: Plan how you will attract and retain customers.
Financial Plan: Include projections for revenue, expenses, and profitability.
Appendix: Add any additional supporting documents like charts or resumes.
Executive Summary: Summarize your business idea, mission, and vision.
Company Description: Detail what your business does, the industry it operates in, and its goals.
Market Research: Analyze the market, target audience, competitors, and trends.
Organization and Management: Outline your business structure, key team members, and roles.
Products or Services: Explain what you’re selling or offering and the value it provides.
Marketing and Sales Strategy: Plan how you will attract and retain customers.
Financial Plan: Include projections for revenue, expenses, and profitability.
Appendix: Add any additional supporting documents like charts or resumes.
Bob Burton
Consultant
76
Answers
Austin, Texas
Updated
Bob’s Answer
I would first start with a Funding Plan. This is a precursor to a Business Plan. The idea here is to explain what it is you now know and whether it is enough to garner financial assistance in developing a Business Plan. The segments of the plan are similar. The difference is in terms of the depth of knowledge and the research you now have to impart to prospective investors.
You will begin with a clear understanding of the problem you are attempting to solve (Is your solution ten times better than others may offer?-You need a significant advantage), Next, you would need an indication as to who will benefit significantly from your solution? (these are your customers). Then, you move on to how many customers do you estimate will want your solution? (this is your market size). Then, it is on to your solution (your product or service). Next, why is your solution significantly better than any others? (This offers insight into your competition). On to, what do you offer that no one else can ?(this is your unique value). Once you offer your solution, what do you anticipate your competitors will do? (This is market response). Then, how do you intend to enter the market? (Who is your first customer). What then is your long term vision? (How big do you think your business can be).Then, on to, How do you expect to make profits? (What is your business model-Can you achieve a 70% gross margin). Next, what is the "food chain" for your industry? (Where do you fit within the other industry businesses-licensing-distributor-manufacturer-et cetera). Next, if investors give you money what is the future? (What will the company look like in five years). Finally, what are your global plans ?(is your solution viable in other countries?
I list a 70% Gross Margin because you will need significant profitability in order to build the business. I also mention ten times advantage for your solution versus others on the market. You will need significant advantage to garner customer interest in your solution. Also, the business model is key. Where do you make the profits? ( The product? The service? Capture of the customer ID/preferences? Licensing? Distribution? Support?-Systems integration?)
You will begin with a clear understanding of the problem you are attempting to solve (Is your solution ten times better than others may offer?-You need a significant advantage), Next, you would need an indication as to who will benefit significantly from your solution? (these are your customers). Then, you move on to how many customers do you estimate will want your solution? (this is your market size). Then, it is on to your solution (your product or service). Next, why is your solution significantly better than any others? (This offers insight into your competition). On to, what do you offer that no one else can ?(this is your unique value). Once you offer your solution, what do you anticipate your competitors will do? (This is market response). Then, how do you intend to enter the market? (Who is your first customer). What then is your long term vision? (How big do you think your business can be).Then, on to, How do you expect to make profits? (What is your business model-Can you achieve a 70% gross margin). Next, what is the "food chain" for your industry? (Where do you fit within the other industry businesses-licensing-distributor-manufacturer-et cetera). Next, if investors give you money what is the future? (What will the company look like in five years). Finally, what are your global plans ?(is your solution viable in other countries?
I list a 70% Gross Margin because you will need significant profitability in order to build the business. I also mention ten times advantage for your solution versus others on the market. You will need significant advantage to garner customer interest in your solution. Also, the business model is key. Where do you make the profits? ( The product? The service? Capture of the customer ID/preferences? Licensing? Distribution? Support?-Systems integration?)
Eddy H
Consultant
27
Answers
Seattle, Washington
Updated
Eddy’s Answer
It is great that you are looking into business plans and it can be pretty straight forward. Start with an introduction, where you summarize your business idea, its purpose, and your goals. Next, explain your business in more detail by describing what you will sell or offer, the name of your business, and what makes it unique. Identify your target market by thinking about who your customers are, such as their age, interests, or location, and explain why they would want your product or service. Research your competitors to understand who else is offering something similar, what they do well, and how you can stand out. Finally, outline your marketing and sales strategy—how you will attract customers and encourage them to buy from you.
Mario Asiain
Student, Entrepreneur, COO, Project Management, Consulting
2
Answers
Atlanta, Georgia
Updated
Mario’s Answer
As someone who is currently starting a business, I would say that the first step is to identify a problem space. Research this space and think about the various pain points that might exist there. Once you have given it enough thought, try to understand the users within this market and why the pain points they are facing have not been addressed. A good way to gather this information is through surveys and live interviews. Once you have digested your findings, I would then begin to find a niche solution and brainstorm how you will solve the pain points you are targeting. Once you have a decent idea nailed down, I would proceed by connecting with target customers and having them identify as many problems as possible with your ideated solution. Do not try to see only the good in your idea, keep an open mind and realize that whatever you have come up with is not perfect. This is where I am currently at in the process! I know it is not a response that reaches the finish line, but it at least gives you something to work with before you reach the business plan stage!
david kirk
Retired Computing Manager
480
Answers
Syracuse, New York
Updated
david’s Answer
You have received some terrific feedback, so I'll just focus on some of the mechanics.
There is a HUGE startup cost, such as
- advertising
- business license
- purchasing inventory
- legal advice
- tax advice
- business insurance
- liability insurance
- store rental
- employee salaries
- having sufficient personal funds to sustain you for at least a year while business grows
Further, you will have business competition. Most new businesses fail within five years with resulting debt to pay creditors. Also, you will be working to some degree every day of the week, and the business may not show a sufficient profit to cover your personal life expenses (apartment, car, clothes, food, etc) for several years.
I did not write the above to scare you, but to show that you will face some or all of these issues in a successful business. It can be a rewarding career, but managing the risk is on the shoulders of all business owners. I wish you well in your pursuits.
There is a HUGE startup cost, such as
- advertising
- business license
- purchasing inventory
- legal advice
- tax advice
- business insurance
- liability insurance
- store rental
- employee salaries
- having sufficient personal funds to sustain you for at least a year while business grows
Further, you will have business competition. Most new businesses fail within five years with resulting debt to pay creditors. Also, you will be working to some degree every day of the week, and the business may not show a sufficient profit to cover your personal life expenses (apartment, car, clothes, food, etc) for several years.
I did not write the above to scare you, but to show that you will face some or all of these issues in a successful business. It can be a rewarding career, but managing the risk is on the shoulders of all business owners. I wish you well in your pursuits.
John Husband
Computer Science, Real Estate, Life
47
Answers
Boca Raton
Updated
John’s Answer
Hi Abel,
What a great question! It infers that you want to start a business which can be one of the hardest and most rewarding careers. There are plenty of templates on the internet that you could fill out to get a bit of a business plan put together. But you really want to think about why you need/want a business plan? Are you creating one to raise capital (money) to invest in your business? Or are you using it to explain the business to employees? Or perhaps you are trying to just organize your own thoughts to better help you take the next step. Each of these have different formats and slightly different information.
Let's start with something basic. Then we can expand on each of these.
What are you selling? For it to be a business you have to sell something right? Ice cream at the ice cream store or medical services at the doctor's office etc. What do you think you have or know that other people would be willing to spend their money on?
How much does it cost you to make (product) or deliver (service)? Whatever it is that you are selling will likely cost you something. Either you'll need to buy materials or fully manufactured products, or you'll need to hire employees (even if you are hiring yourself!) You need to figure out what it's going to cost you to be able to deliver the product or service to the marketplace.
How much will the market pay you for your product or service? Assuming you have something people want to pay for, what are they willing to pay? What do they pay today? Would they pay more for what you are offering? Would they only pay less?
What is the difference between what you can charge for the thing you are selling and the overall cost of what you are selling? Answering this question will tell you at a very high level if there is any hope that the business has a chance to be viable. A good rule of thumb is if something costs you $1 you should be able to sell it for $3. If you can't make that kind of margin then continue to work on lowering your costs and increasing what your customers will pay for it.
There are many other factors that might play into making a business and business plan. Like legal for example. Is what you want to do legal or how can you sell it legally etc.
To build your custom business plan either start with a template available for free or just start writing in MSFT Word or Google Docs. the most important thing to learn at this stage is don't keep notes in your head. Write them all down. As you build the plan over time and as it changes form for different uses you will want to have everything readily available so you can just copy and paste and edit.
Hope this gives you a start. I can wait to see what you dream up!
-John
What a great question! It infers that you want to start a business which can be one of the hardest and most rewarding careers. There are plenty of templates on the internet that you could fill out to get a bit of a business plan put together. But you really want to think about why you need/want a business plan? Are you creating one to raise capital (money) to invest in your business? Or are you using it to explain the business to employees? Or perhaps you are trying to just organize your own thoughts to better help you take the next step. Each of these have different formats and slightly different information.
Let's start with something basic. Then we can expand on each of these.
What are you selling? For it to be a business you have to sell something right? Ice cream at the ice cream store or medical services at the doctor's office etc. What do you think you have or know that other people would be willing to spend their money on?
How much does it cost you to make (product) or deliver (service)? Whatever it is that you are selling will likely cost you something. Either you'll need to buy materials or fully manufactured products, or you'll need to hire employees (even if you are hiring yourself!) You need to figure out what it's going to cost you to be able to deliver the product or service to the marketplace.
How much will the market pay you for your product or service? Assuming you have something people want to pay for, what are they willing to pay? What do they pay today? Would they pay more for what you are offering? Would they only pay less?
What is the difference between what you can charge for the thing you are selling and the overall cost of what you are selling? Answering this question will tell you at a very high level if there is any hope that the business has a chance to be viable. A good rule of thumb is if something costs you $1 you should be able to sell it for $3. If you can't make that kind of margin then continue to work on lowering your costs and increasing what your customers will pay for it.
There are many other factors that might play into making a business and business plan. Like legal for example. Is what you want to do legal or how can you sell it legally etc.
To build your custom business plan either start with a template available for free or just start writing in MSFT Word or Google Docs. the most important thing to learn at this stage is don't keep notes in your head. Write them all down. As you build the plan over time and as it changes form for different uses you will want to have everything readily available so you can just copy and paste and edit.
Hope this gives you a start. I can wait to see what you dream up!
-John
Aman Kumar
Software engineer
161
Answers
Hyderabad, Telangana, India
Updated
Aman’s Answer
Hi Abel,
Creating a business plan can seem daunting at first, but it’s all about breaking it down into manageable steps. Start by defining your business idea clearly. What are you offering, and why is it unique? Once you have that nailed down, conduct market research to understand your target audience and potential competitors in Birmingham. You should ask yourself questions like: Who will buy my product or service? What are the market trends?
Next, outline your business structure and how it will operate. This includes detailing your marketing strategy and sales projections. A practical example could be planning open houses if you wish to start a real estate business—showcasing properties to potential homebuyers can generate interest and establish your brand in the local market. Don’t forget to include financial projections—budgeting for the first year can be particularly enlightening. You might want to look into an online business planner like LivePlan to streamline your figures and projections. Finally, keep your plan succinct and professional. It’s not just for you; it’s often a requirement if you decide to pursue funding. Once your draft is ready, gather feedback from trusted industry peers or mentors. Their insights can help refine your plan further.
Good luck!
Best,
Aman
Creating a business plan can seem daunting at first, but it’s all about breaking it down into manageable steps. Start by defining your business idea clearly. What are you offering, and why is it unique? Once you have that nailed down, conduct market research to understand your target audience and potential competitors in Birmingham. You should ask yourself questions like: Who will buy my product or service? What are the market trends?
Next, outline your business structure and how it will operate. This includes detailing your marketing strategy and sales projections. A practical example could be planning open houses if you wish to start a real estate business—showcasing properties to potential homebuyers can generate interest and establish your brand in the local market. Don’t forget to include financial projections—budgeting for the first year can be particularly enlightening. You might want to look into an online business planner like LivePlan to streamline your figures and projections. Finally, keep your plan succinct and professional. It’s not just for you; it’s often a requirement if you decide to pursue funding. Once your draft is ready, gather feedback from trusted industry peers or mentors. Their insights can help refine your plan further.
Good luck!
Best,
Aman
Rich Bianculli
Regional Director - Network Strategy Department
19
Answers
Alpharetta, Georgia
Updated
Rich’s Answer
Look into Chatgpt models. They can get you started with a good template and formulating ideas.
Reach out to your network, family and friends. Look for those who have started business, invest in business' or have experience in building out business models.
Join a club or group of entrepreneurs. They can help you formalize and critique your business model.
Pay close attention to the financials and ensure the customer base is available and interested in your product/service. Differentiate yourself according to that customer base feedback and make sure the business model reflects that mission.
Reach out to your network, family and friends. Look for those who have started business, invest in business' or have experience in building out business models.
Join a club or group of entrepreneurs. They can help you formalize and critique your business model.
Pay close attention to the financials and ensure the customer base is available and interested in your product/service. Differentiate yourself according to that customer base feedback and make sure the business model reflects that mission.
Jerome Dees Jr.
Sales Professional and Networking Expert
613
Answers
San Francisco, California
Updated
Jerome’s Answer
The Small Business Administration and SCORE have great resources for creating business plans. I would recommend finding sample business plans online that relate to the industry you want to be in. You can also get a good foundation by asking ChatGPT to build you a business plan based off of a list of criteria you give it.