In Starting a startup: Processing Ideas, I explained how a simple exercise can help determine the merit of your ideas; the common sense litmus test is designed to catch major flaws and justify spending more time exploring the possibility of starting your startup.
Now, it's time to get serious. The next stage revolves around developing your idea into a business plan. At first, it can seem like a daunting task, but it's absolutely vital for your startup's success. By completing the business plan early on, you can be sure that you see the big picture, and it will be easier for you to draw the attention of prospective partners, employees and investors to your startup.
Don't worry about formatting yet; compiling all of the information you need first will make formatting as easy as copy and pasting into the appropriate sections. I ordered the steps in the way that made the most sense during research rather than how your final project will be formatted, so keep that in mind.
Step 1: Mission Statement
Your mission statement should explain your business, its goals and its "essence" in one sentence. Take the time to envision the ideal customer experience. An example mission statement for NNE would be:
"No-Noise Entrepreneur seeks to educate entrepreneurs and those who wish to become entrepreneurs in a way that encourages their success and is free of any hidden agenda."
The example follows the suggestion exactly; I name the business, state its goal, explain the target audience and illustrate the company's values. It's a fairly straightforward process.
Step 2: Business Description
Write a description of your business -- explain to the reader how your company will operate. You will want to include your product development/manufacturing, sales strategy, marketing strategy and business management tactics. Don't go into too much detail at this point; a few paragraphs should be sufficient. Your goal is to give a basic overview of the entire business.
Step 3: Organization and Management
This section is meant to explain your hierarchal structure and how your business will be managed. Just because you don't have any employees yet or plan on being the only worker does not mean that you can skip this section -- it's still just as important.
Create a hierarchal chart and include it at the end of this section. Draw every employee that you plan on having and explain their job duties in the text above. If you're going to have several employees, a departmental level explanation and presence on the flow chart is sufficient.
You'll also need to include any founders, their professional experience and explain why they are qualified for their positions; this is important because it will help you and others understand what each of the main partners bring to the table for your startup.
If you have any intellectual property, such as copyrights, patents or trademarks, list them here. You'll also want to explain whether you're pursuing or plan on pursuing any of these in the future.
Lastly, you'll want to give a basic overview of how your day-to-day operations will be managed; discuss how your business will handle customers, sales, accounting, licensing and anything else that you will be doing to keep your business in tip-top shape.
Step 4: Product Development/Manufacturing
Utilize this section to explain your product -- this should be the technical side of things rather than the pricing structure, etc., which will come later. You should describe your product, its development process, future research and design plans and the benefits it offers to customers. The last thing you'll want to explain is how it matches up to the competition and why your product will better serve customers.
Coming soon...
We've got four steps left for our business plan; marketing analysis, marketing and sales strategies, financial forecast and the ever important funding request. These are the most important sections of your business plan. I want to take my time and write up a guide that gives you a clear picture of exactly how to do it right. After that, we'll be going over a sample business plan and learning how to format yours.
Don't forget to leave a comment if these guides have helped you in any way!
Step 3: Organization and Management
This section is meant to explain your hierarchal structure and how your business will be managed. Just because you don't have any employees yet or plan on being the only worker does not mean that you can skip this section -- it's still just as important.
Create a hierarchal chart and include it at the end of this section. Draw every employee that you plan on having and explain their job duties in the text above. If you're going to have several employees, a departmental level explanation and presence on the flow chart is sufficient.
You'll also need to include any founders, their professional experience and explain why they are qualified for their positions; this is important because it will help you and others understand what each of the main partners bring to the table for your startup.
If you have any intellectual property, such as copyrights, patents or trademarks, list them here. You'll also want to explain whether you're pursuing or plan on pursuing any of these in the future.
Lastly, you'll want to give a basic overview of how your day-to-day operations will be managed; discuss how your business will handle customers, sales, accounting, licensing and anything else that you will be doing to keep your business in tip-top shape.
Step 4: Product Development/Manufacturing
Utilize this section to explain your product -- this should be the technical side of things rather than the pricing structure, etc., which will come later. You should describe your product, its development process, future research and design plans and the benefits it offers to customers. The last thing you'll want to explain is how it matches up to the competition and why your product will better serve customers.
Coming soon...
We've got four steps left for our business plan; marketing analysis, marketing and sales strategies, financial forecast and the ever important funding request. These are the most important sections of your business plan. I want to take my time and write up a guide that gives you a clear picture of exactly how to do it right. After that, we'll be going over a sample business plan and learning how to format yours.
Don't forget to leave a comment if these guides have helped you in any way!
No comments:
Post a Comment