So, you’ve decided to start your own business. You have dreams and hopes for success and for improving your life.
You probably also have some knowledge in the field you want to work in. But have you structured a business plan to guide the operation of your new business? At the very least, have you wondered, “How do I create a business plan for my business?”
Let’s take a look at what a business plan actually is. As the name suggests, it’s a plan you need to develop based on real data, not just expectations. It’s your compass to help you reach your destination.
For a business plan to be useful, it should at a minimum include the following:
1. Analysis of the Market You Want to Operate In
Today, no one operates in isolation. In the past, you could set up a business in your village and only worry about your local community. Now, in the era of globalization, events such as the war in Israel can affect transportation costs and completely alter the trajectory of your new business. Therefore, it is crucial to examine the political, economic, and technological environment. For example, who can ignore (if they are aware) that the use of credit and debit cards accounts for approximately 65% of transactions, reaching as high as 80% in certain sectors?
2. Industry Trends
You need to study industry trends to see whether there’s short-term or long-term growth or decline. Are there monopolistic situations or serious legal restrictions that might impact your business’s performance?
3. Competition
A thorough analysis of the competition is essential for any business plan. This includes noting their strengths and weaknesses, their commercial policies, pricing, and advertising strategies.
4. Your Goal
You should clearly define, in numerical terms, what you aim to earn from this business. Knowing your goal from the start allows the business plan to indicate whether your objective is achievable or overly ambitious.
5. Investment Cost
Record all initial expenses (store setup, equipment, machinery, licensing, company website) and outflow costs, such as VAT, rental payments needed before opening, rental guarantees, initial marketing efforts, and working capital. Most businesses start without a plan or cost documentation and end up in debt from the beginning.
6. Hypothetical Revenue-Expense Scenarios
Many new entrepreneurs assume they’ll have very high revenue and minimal expenses, but reality is often the opposite. To prepare, your business plan should include multiple revenue-expense scenarios, including a low-revenue scenario to assess if the business can still sustain itself. You should also identify the break-even point, where you neither profit nor lose money.
7. Strategy
Few new entrepreneurs put thought into this, which often results in businesses lacking a clear identity and a focused communication style, ultimately confusing and disappointing customers who then leave. While there are many areas and sections a business plan should cover, the above are the essentials. You don’t need to be a financial expert, but you do need to gather as much information as possible to reduce the risk of failure and avoid unpleasant surprises.
If drafting a Business Plan, seems impossible to you, consider consulting specialists. With a reasonable fee, they can help you avoid pitfalls, save resources, and prevent wasted time. Many failed entrepreneurs say they would have paid handsomely to go back and start more organized, reducing the risk of failure.
THE WAY, with 25 years of experience, expertise, and a team of specialists, has created business plans for both major corporations and small businesses with impressive results.
Call us at +30 210 9602952 or email us at info@theway.gr to create your own business plan, helping you secure your capital, achieve your goals, and change your life.
