When you want to start a business, you come up with an idea and modify it until you have a model that should work in real life. Now, it’s time to complete a critical step towards becoming a business owner: making your business plan.
Identify Your Purpose
Your business plan explains to potential investors what your company will look like. First, you must convince them that your business meets a need in your target market. To do this, you explain what that need is and why your plan fulfills it more than any other company. For example, if you want to manufacture drilling supplies made of carbon plate steel Tulsa OK, you must explain why your drills are more useful than your competition’s.
Explain Your Process
How exactly does your business meet your market’s needs? You’ve pitched your products in your opening section, and now you need to explain how they’re made. List the necessary supplies, equipment, and manufacturing steps in as much detail as possible. Estimate how many employees you need to handle each step, and identify potential vendors and their prices. The more specifics you can provide, the more your investors are willing to support your idea.
Propose Your Budget
Now it’s time for the tricky part of your business plan: your budget proposal. If you ask for too much money, your investors see your business as unsustainable, but if you ask for too little, they think you haven’t thought your plan through. Work with an accountant to estimate your business’s startup costs as well as your monthly operations. Then, suggest potential sources of startup capital, including your savings, loans, and crowdfunding.
Making your business plan takes lots of research and effort, but it’s a concrete step towards getting the funding you need to open your small business.