Are you creating a business strategic plan? If so there are certain rules the business plan should follow, and here are some important issues:
KW: business strategic plan
The audience of the business plan is important. It could be venture capitalists, investors, shareholders, and so on. It’s important to keep the audience in mind when writing your business plan. This is important because you should keep the perspective of the reader.
For example, if the reader is a lender, they’ll want to know why they should consider lending you money for your business. In that case you have the job of showing how you could get the bank, lending company, etc. back its money in the fastest time possible. Other details about product features and such would be less critical to them.
An important aspect of business strategic plan is your company’s competition. It’s important to include some information about some of the products/services of your main rivals. You could also include information such as market trends, some of the main rival companies, and so on.
It’s important to include some general information about the competition. However, you shouldn’t include any negative comments about the competition as it could come across as unprofessional.
Make sure to include some projections for your company in terms of your company’s future sales. This is especially important for investors to see as they’ll want to know how soon they could get their money back.
Still, it’s critical that the projections be reasonable. If they aren’t it could raise some questions about your company’s integrity and also raises question marks in the minds of the investors when reading the business strategic plan.
It’s not enough to make claims in your business plan. Instead, make sure to include facts that back up any claims you make. For example, if you think your company will have sales of X units within the next year, it’s important to show some proof such as information about market share and similar items.
It’s important for the business strategic plan to be realistic in projections. For example, base your projections on current information. For example, what are your sales projections based on the current market? Can you afford to expand by adding new locations or websites based on your current budget?
There’s nothing wrong with including “stretch” goals” that you could reach with some extra effort. However, you should certainly avoid adding projections and such that your company has 0% chance of achieving. That would be unfair to both you as well as the business plan’s audience, and especially if they’re considering making an investment in your company.
It’s critical that the business strategic plan explain how you’ll build a strong management team. In fact it’s one of the keys to work towards in towards of your company’s future. There are certainly other factors such as the economy, market, products, competition, and so on. However, it’s a good management team that will help to achieve success.
These are some of the most critical components to include in your business strategic plan.