On Inc.com, David Ronick advises readers on how they can take the pain out of writing a business plan.
To get started, Ronick advocates breaking your vision into "bite-sized pieces" that focus on what matters most.
He draws special attention to the following six areas:
1) Goals. Start-ups undergo evolutionary development and it's easy to lose site of your original motivations. It's important to ensure that everyone involved is clear about goals and hoping to achieve the same things.
2) Environment. The author emphasises that you need to be sure the market is large enough to support your goals and that the trends are heading in the right direction.
3) Customers. Ronick points out that start-ups have limited resources, so you should focus on one customer segment. By sticking to your initial target market, you'll find it easier to find customers and keep them happy.
4) Unmet needs. If it is going to be successful, your business has to fulfil customer needs that aren't currently being met.
Ronick recommends finding a cheap, fast way to reach customers to see how they react. Get some clients to pre-pay before a full launch, try a test blog before you set up a website or sell products at an in-store boutique before signing a lease.
5) Strategy. The author insists that creating a simple, clear strategy statement will allow you to "crystallise" your thoughts, which will help your team and outside investors gain a full understanding of precisely what you're aiming to achieve.
6) Business model. Ronick says that building a business relies on a way to make mone, and that way has to fit in with what you're doing. For instance, if your primary revenue source is selling ads on your website, your content must be good enough to drive visits, and brands must must be prepared to pay to reach those visitors. The author insists that the more complex aspects of a business model, such as unit economics, can be covered later.
Source
Take The Pain Out Of Writing A Business Plan
David Ronick
Inc.com
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