Are you considering starting a business or have you already taken the leap? If so, you’re likely familiar with the concept of a business plan. While there is some debate about the necessity of business plans for modern startups, outlining your thoughts and plans for your business’s growth can be incredibly beneficial.
In our upcoming fireside chat, How to Create the Modern Business Plan for Your Startup, on Wednesday, June 15th, we will delve into what information to include in your business plan, the key questions it should answer, and how to tailor your plan for different audiences. Don’t forget to RSVP!
Insights from Industry Experts
We reached out to five small business experts to gain perspective on the critical questions that every business plan should address. Here’s what they shared:
Essential Questions for Your Business Plan
Jill Bigelow, PELV-ICE LLC:
Key elements to include: Problem statement, target market size, team composition, marketing strategy, customer acquisition cost, competition analysis, financial projections, unique value proposition, and funding requirements.
Eric Michael Sales, Eric Michael Sales Public Relations:
Your plan should address the who, what, when, where, and why, catering to three distinct audiences: the general public, investors, and your team. Ultimately, your business plan should facilitate day-to-day operations.
Kurt Ostergaard, Stirling Insurance Services:
Identify your target customers, understand their pain points, outline your distribution channels, analyze your competition, and establish relationships with suppliers.
Kyle Golding, The Golding Group:
- Address the who, what, when, why, where, how, and for how much.
- Define your brand identity and target audience, articulate your value proposition, highlight purchase triggers, outline pricing strategies, and emphasize competitive advantage.
Daniel Feiman, Build It Backwards:
Define your business’s identity, purpose, goals, strategic roadmap, communication plan, resource allocation, performance metrics, and reward system.
Key Components of a Business Plan
Summarizing the insights from experts, your business plan should address these fundamental questions:
- Why does your business exist?
- Who are your target customers, and what are their needs?
- How is your business distinctive, and how will it resonate with the market?
- What are your growth projections and scalability plans?
- What resources do you require, and what are you offering in return?
Significance of Addressing these Questions
By answering these critical questions, you articulate your business’s value proposition, positioning yourself as a compelling opportunity for investors, partners, and employees. Clarity in your business plan facilitates understanding and engagement, answering the crucial question: What’s in it for me?
Customizing for Diverse Audiences
While the core questions remain consistent, tailoring your business plan to specific audiences is crucial. Different stakeholders require distinct information to align with their interests and needs. Check out this article for more details on adapting your plan for individual audiences.
For Investors
Investors seek concise and compelling business plans that stand out amidst numerous proposals. Captivate investors with your vision and passion, demonstrating the potential for mutual success.
For Lenders
Provide banks and lenders with detailed financial information and realistic projections to assess the feasibility and risk associated with your business.
For Partners
Communicate your vision authentically to attract partners who share your enthusiasm and align with your mission.
For Employees
Appeal to potential employees by showcasing a compelling mission, along with a solid strategic and financial foundation to instill confidence in long-term career prospects.
Additional Considerations
While your business plan should cover the essentials, be prepared to address additional questions that may arise. From financial anomalies to your personal expertise and elevator pitch, thorough preparation enhances your credibility and readiness for diverse inquiries.
Commence Your Business Planning Journey
With a clear framework and understanding of the critical components, it’s time to dive into crafting your business plan. Conduct thorough competitor research, articulate your vision, and prepare to present a plan that embodies your entrepreneurial journey.
For comprehensive guidance on initiating your business plan, explore Brainstorming Your Business Plan—a segment of Grasshopper Academy’s Developing a Business Plan course.