So you’re starting your own business. You will need a business plan. Think that business plan needs to be complicated? Think again. A simple business plan is the easiest to write, and the easiest to stick to.
A simple business plan then moves on to a complete but concise description of your company: what product or service you are creating, what market vacancies that product addresses and what the strong points of your company are. What’s the legal structure of your company? Does it have an advisory board? Who sits on it and what do they bring to the table?
Next you need to write a description of your market. You will need to do some research here. How can you be sure there is actually a demand for your product or service? Again, keep the information you provide short, targeted and precise.
From there, a simple business plan reviews the current state of the industry you are targeting and what kind of response your fledgling company can anticipate from businesses that are already established in that market.
What criteria will you use to price your product or service? How will you promote your new product or service given the resources available to you? If you’re manufacturing a product, what do you anticipate your distribution network will look like and how long a sales cycle do you propose?
The two most important part of a simple business plan are the action plan and the financial summary. The action plan outlines everything your company plans to do over the next year with quantitative criteria for assessing whether critical milestones have been reached. Your financial summary includes information about what funds you have on hand, what uses you plan to put them towards and what sources you hope to apply to for the additional funding that will be necessary until your new company gets off the ground.
Follow these instructions for a simple business plan and you will have a document that works as a foundation for your first year of operation.