This is part 2 of a 2 part series with the first part available by clicking here.
3. Analyse your competition
It is very important that before you launch your service or product you analysis your competition. Knowing your competitiors strengths and weaknesses is very valuable information in terms of making your business
idea a success. In addition to this you need to know what your strengths and weaknesses are. This allows you to play to your strengths and develop your weak areas. Further to this you need to know what opportunities exist within the market you are entering. This infomation will allow you to develop potential strategies for developing your business in the future. Equally important is being aware of potential threats. This information is important for two reasons. Firstly if there are too many threats which is going to make your business idea too difficult to pursue then you may decide to explore a different idea. However alternatively if you feel the threats are something you can overcome being aware of them and developing strategies within your business plan will allow you to be proactive. This should reduce the likelihood of you experiencing unforeseen circumstances. However it is important that no matter how comprehensive your business plan is you are likely to experience unforseen problems at some stage. This will mean you will need to be resillient and be a good problem solver at all stages of your business journey. If you would like further information on developing a SWOT analysis to include within your business plan click here.
idea a success. In addition to this you need to know what your strengths and weaknesses are. This allows you to play to your strengths and develop your weak areas. Further to this you need to know what opportunities exist within the market you are entering. This infomation will allow you to develop potential strategies for developing your business in the future. Equally important is being aware of potential threats. This information is important for two reasons. Firstly if there are too many threats which is going to make your business idea too difficult to pursue then you may decide to explore a different idea. However alternatively if you feel the threats are something you can overcome being aware of them and developing strategies within your business plan will allow you to be proactive. This should reduce the likelihood of you experiencing unforeseen circumstances. However it is important that no matter how comprehensive your business plan is you are likely to experience unforseen problems at some stage. This will mean you will need to be resillient and be a good problem solver at all stages of your business journey. If you would like further information on developing a SWOT analysis to include within your business plan click here.
4. Know your unique selling point (USP)
When entering an established market one of your biggest tools to help you succeed is likely to be your USP. Your USP is of such importance I needs to be clearly described within your business plan. In order to take customers from your established competitors you need to stand out. This is where your USP comes in. Do not be fooled in to thinking that consumers will come to you to buy your service or product simply because you are the cheapest. Consumers want quality not just cheap prices. As a business you will also need a healthy cashflow to survive. It is especially important that if you are a small business competing against much bigger more established businesses offering cheap prices is unlikely to help you as your competitors may be able to under price you. Your USP is much more likely to establish your business and increase sales and revenue if it is something original that consumers need and want. It is important that you highlight your USP within your business plan and that you have researched it to ensure it will support your business and develop your brand. A USP that does not solve a problem, is not needed or wanted will not add any value to your business or promote it. Smarta have produced a brief guide on developing a USP in their post "Unique Selling Points" which is available by clicking here.
5. Practical
Dependent on what purpose(s) you have developed your business plan for may determine the format that your plan takes. If you are looking to gain interest from investors then your business plan is going to need a formal and professional appearance if you want to be taken seriously. However if you do not need investment then your plan can be a lot less formal if this makes it more useable for you. There is no reason why you can not have two different formats if your are looking for investment but want a useable and practical plan too. I would argue that your business plan is a very important tool and will only strengthen your likelihood of success if you are able to use it. For this reason I would suggest you lay it out in what ever order you find easiest to follow and format it in a way you find practical.
For further tips on developing a business plan I would recommend reading "An Introduction to Business Plans" published on Entrepreneur.com.
Further to this there is a useful article published on BBC News "How to write a business plan" click here to read their article.
If you would like some software to help you develop a business plan you may find the below something you want to explore further as it helps you to develop a business plan in a reasonably quick manner. For those of you who are more confident or would prefer to learn about business plans to develop one you may find the books below this software more suitable.
If you would like some software to help you develop a business plan you may find the below something you want to explore further as it helps you to develop a business plan in a reasonably quick manner. For those of you who are more confident or would prefer to learn about business plans to develop one you may find the books below this software more suitable.
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