Hello Everyone,
Today I will be talking to you about what a business plan is, The importance of a business plan and what different businesses plans will look like.
SO...
What is a business plan?
A business plan is a document that sets out a business's future objectives and their strategies for achieving these objectives (to show that these objectives are achievable).
What a business plan has to take into consideration
Competitors - What is unique about your product that will make your company more favourable over other bigger and more established companies. E.g. More Environmentally Friendly, Cheaper.
How you're going to become successful - If a business has to secure investments they will need to convince potential investors why they should put money into it. Telling them how you are going to be successful in a business plan could convince them to invest in the company.
Aims - The most important one. Without aims a business plan wouldn't be a business plan.
The Importance of a business plan
One reason why business plans are useful for a company is because it can be used as something to motivate the owner whilst working, if he can see that he is on track or ahead with his targets this will boost the owners morale. If the company is not doing well this also is a motivation as a sign that more work needs to be put in to achieve the targets.
If a business plan has clear plans, aims and objectives for the company then they are more likely to achieve those goals. Everyone in the business must know the goals to emphasise the importance of working well in the company.
One of the other main reasons a business plan is made is to make sure the business survives and making sure it knows how to keep their company out of debt.
It allows us to identify our target market E.g. Children, Teenagers or Adults. It also allows us to identify the profile of the customer E.G. Mountain Climber, Cook or Teacher.
Business Related Aims
- Survival
- Get more Exposure
- Build a good reputation
- Sell a certain amount of products
- Profit Maximisation
- Pay off any bank loans
- Build a big social media following
- Success
- Have Employed Staff
- Increase Market share
- Market Dominance
SMART Objectives
S - Specific
M - Measured
A - Attainable
R - Realistic
T - Timed
The different objectives of different businesses (New or Established)
New
To increase awareness by customers of the business
To grow the reputation of the business
Survive
Established
To increase market share
To achieve market dominance
To be UK market leader
To increase customer satisfaction levels
To be innovative, introducing new products to the markets
Reduce the costs of the company
Thank You for reading the blog I hope this lesson is useful,
Matthew