Five characteristics of a good business plan
A business plan like any other article 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, keep reading. But first of all, let’s start by giving everyone an idea of what a business plan is.
As implied, a business plan is a document that specifies and discusses the following:
• Nature and identity of the company
• Your objectives and the purpose of your existence in the world of consumers and businessmen.
• 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 business
• And, of course, your financial situation before you start
By having all that information, you can see that a business plan is very much like a blueprint that will help you or anyone else start and run a business, regardless of its nature.
Now that you realize its importance, the next thing to start working on is learning how to make one. But before you need to fire up your computer and start writing, here are the qualities of a good business plan to keep in mind.
1. A business plan must be detailed. When listing your products and services, for example, you shouldn’t just list them. You should also jot down your product and service descriptions and scope, hit the production base, and identify outlets on how you can market your “brain kid” to your target niche.
2. You must include a market study that identifies your competitors, their market share and the range of products they produce. By learning how they conduct their operations, you can learn tricks of the trade in the business you want to get into, 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 a day for your business to survive.
4. It must also be written in a formal format and style. You should remember that a business plan is something you may have to present to your business partners, financial firms, 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 a business person. 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 about them, you can begin your research and start writing your essay.
