A business plan outlines a reasoned opportunity. Basically, it solves a problem with a concrete, well-documented solution.
A simple idea being developed is not a business plan. A business plan is a written, highly structured document that highlights a real problem or need that is worth solving with your business solution or idea.
Studies show that on average only 10% of start-ups manage to remain in the market for the next year.
With the right business plan, you can achieve the following:
A business without a plan is not really a business.
Before making any investment, it is advisable to have a specific list of objectives and criteria in mind. The better structured these are, and the more accurate the research and market analysis are carried out, the greater are the chances of success.
Outline the key problem or the unmet need of your target group. Explain briefly why your customers need your services or products.
Example: Remote digital marketing agency
Both national and international companies need marketing services to sell more with smaller budgets, but every year the digital promotion channels are getting more expensive.
Over the past 5 years we have identified an annual increase in the cost of promotion on most online platforms of 40% for similar results.
Also, over 50% of companies use ineffective traditional marketing tools.
Based on digital metrics, we have identified a marketing strategy that reduces the cost for the same results by 50% on average. This way, new customers will double their sales with the same promotion budget.
Our customers chose to increase their allocated promotion budget because they reported a significant increase in sales as a result of marketing actions.
Highlight the figures you have found through market research on your area of activity.
Who are you targeting? How many people are interested in your products or services locally or even internationally, if your aim is to scale your company?
Make sure you only highlight those who have financial potential and need for your products.
Briefly present the statistical data found through market research that is relevant to your field of activity.
Example:
Locally, the size of the market is represented by the number of companies operating in Romania, 1.2 million, and globally the target group extends to over 30 million, adding companies from England and the United States.
Every company, regardless of its size, represents a potential new customer, thanks to our rates and packages.
Every year there is an average 7% - 10% increase in new company start-ups in Romania, England and the United States. This growth represents the development of the target group, so we aim for long-term sustainable results.
1. Introduce the options customers currently have for similar services and products. If your product or service does not exist, highlight competitors that present rudimentary fundamental concepts in your field.
Example:
Direct competitors are represented by digital marketing agencies.
Indirect competitors are freelancers and internal employees in the marketing departments of the companies in our target group.
2. Describe why your solution is better than your competitors' solution. There can be many arguments here, such as innovative concept, product quality, product price, new approach, affordability, efficiency, etc.
1. Marketing objectives
Thoroughly describe the marketing objectives.
Our recommendation is to start with the SWOT analysis, then answer the questions below
How do you attract customers? What is your promotional budget to reach your potential customers? What promotion channels do you want to use? What is your approach?
Example:
2. Pricing strategy
Set the price of your products and services so in a way that they are affordable for your customers.
Ideally, you should have a lower price for similar products and services offered by your direct competitors, or the same price if your products and services are of higher quality.
Example:
We offer three standard packages for complete digital marketing
Our service prices are on average 70% lower than digital marketing services offered in the USA, England or Australia.
In Romania, rates are 5% to 10% below market prices for similar services.
3. Technology, Equipment & Tools
Write a list of all the equipment needed to run your business such as: desks, laptops, lights, cables, machinery, machines, phones, servers, etc.
Be careful not to forget the most expensive ones, otherwise they will directly affect your profit margin.
Example:
List of equipment needed to run your business:
1. Office space - 50 m2
2. Desks and office chairs - x5
3. Laptops - x5
4. Monitors - x10
5. Phones - x5
6. Adobe licenses - x10
7. Microsoft licenses - x5
8. Cloud server - x1
9. Printer - x1
Develop a timeline of actions from scratch all the way to market launch and positioning of the company in the first year.
Estimate with precision the date you will set up the company, the date you will contract for work space, the date you will hire staff, purchase equipment, the date you will launch the business and other dates for the activities and actions you will implement.
Describe the key metrics that are most important to the stability of your business. They can include the working capital, monthly income, profit margin, etc.
Briefly describe what factors may put your business at risk. Explain your actions if something does not go according to plan.
For example, maybe during one month your income does not match your expenses. What are you going to do to support operational costs?
A business plan is essential for your company. Although you will probably spend a fair amount of time writing it, it will come in handy in many situations.
If you need help with it, you can always contact us.
At Remote Marketing, we can create a relevant business plan for you that includes everything you need.
