On today's episode of The Small Business Show, we discuss how to create a solid business plan with America's #1 small business expert, CEO of The Quintessence Group, and bestselling author Melinda Emerson.
Important points
1. We highly recommend planning 12 months before launching your business. During this time, you need to research, talk to the right people, save money, and most importantly understand who your paying customers are.
2. The first thing you need to include in your business plan is the reason behind why you want to start this business. This is where your purpose, values, and mission should come from.
3. Next, you need to think about how you will finance your business. It is important to remember that banks typically do not lend money to startups. Therefore, most startups use personal savings to raise capital.
Four. The third aspect to consider is how the business operates. You need to determine your current skills and the skills you need to run your business successfully. Emerson also suggested that some people may need to work at another business similar to the one they want to start before launching their own business to get a clear idea of their plans. doing.
Five. Finally, it's important to understand your marketing plan and target audience. You need to understand where your potential customers go, what they prefer, and build your marketing strategy accordingly. Emerson advises, “If you can't differentiate your business from your competitors, potential customers are more likely to turn to bigger, well-known brands.”
6. Entrepreneurs should also prioritize how realistic their sales forecasts are. A 20-25% increase is still an aggressive goal and can help you budget on an annual, quarterly, and monthly basis. However, Emerson advises entrepreneurs not to include “super secret sauce” such as actual intellectual property or patent applications in their business plans.
“You have to think hard about how you specifically serve this customer.” – Melinda Emerson.
