For novice entrepreneurs, the business plan is a blueprint for how to organize, build and operate the process. Entrepreneurs also use the plan document to introduce the project to potential investors. The plan shows, step-by-step, what needs to be done to create the company. Describes the resources necessary for a project to succeed. Since the important assumptions of financial forecasting may not be known, such as the cost of developing the proposed company's products, the expected numbers depend to some extent on educated guesses. This makes writing a plan very difficult.
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1. Select the size of the company you wish to build. If your goal is to have a company that generates enough cash flow to provide your family with a comfortable lifestyle, then this suggests a different structural and capital structure than if you wanted to reach $ 100 million in revenue within three years. The larger the company you intend to build, the more venture capital you need from capital or angel investors, rather than relying on the cash flow generated internally.
2. Provide convincing reasons why the market needs your company. Businesses succeed because they recognize an unmet need or problem with customers, and provide a cost-effective solution to this problem. The solution should save customers significant time and money, or improve their quality of life.
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3. Company plan, not just a product. Many startups, especially technology projects, start developing a single product. One product is generally not enough to maintain a company over its life. Make sure that you are considering the next generation of products or services, and the new markets that you will enter after success in the primary market.New Company Formation in Dubai
4. Show how you will sell your products or services. Make sure that you clearly define the tactics that you will use to sell your products. Don't just generally speaking like 'We will sell through distributors'. Unless you specify specific sales tactics, you cannot prepare a realistic budget against the cost of entering the market. Not explaining how the company reaches its customers is a weakness in many of the business start-up plans. Even cool technologies don't sell themselves.
5. Outline your competitive advantages. Even if you enter a strong, fast-growing market, you will still face competition, and you have to position your company so that your customers understand why your products or services are superior. Take your time to research and understand how competitors do your business, and what their strengths and weaknesses are. One of the three major mistakes that investors see in a business plan, poor market analysis and competition, according to a survey by Profit Dynamics Inc. In 'Attracting Capital from Angels'.
6. Provide an explicit evaluation for your management team. Startups rarely have a full management team assembled. They may need funding to recruit senior tour managers to complete the team. Discuss any gaps you currently have in the management group. Describe in detail the expertise and competencies required of each person you will assign, and how you intend to find these distinguished individuals. On her website, Small Business Administration notes that it is important to explain how the 'unique experience' of each team member will help your company succeed.