WHY IS A BUSINESS PLAN IMPORTANT?
A business plan is an essential part of any business. It shows that you have an in-depth knowledge and reasons for getting into that business and to a large extent, the knowledge of the company’s direction.
Some key parts are:
1. Business Overview
2. Products and Services
3. Industry Overview
4. Marketing Strategy
5. A Financial Plan
6. Your Executive Summary
BUSINESS OVERVIEW
This is a detail of your business history, vision and or mission, objectives and ownership structure. Different business structures come with varied protection, ownership and other legal and tax considerations as well. For example an LLC would differ from an S Corporation. Your accountant would be the best person to direct you in the direction of your company’s required structure. You should know where you’re company is coming from and what direction you wish to lead it into and other formalities your accountant will guide you with.
PRODUCTS & SERVICES
In this section you clearly state your business or product services, including benefits and completive advantage, how and where your product will be produced.
Price is always a big advantage when competing so when branding and sourcing locally or abroad this is a main factor to consider. If you are considering selling or housing products with Amazon you need to look at your competitors and how competitive you will be when factors such as price point, packaging and cost for importation should be considered. As an amazon seller your overall biggest advantage would be the fact that Amazon is the biggest retailer market in the world.
INDUSTRY OVERVIEW
The Industry Overview shows the viability of your business and discussing the size and growth of your industry, which markets you will be targeting and how will they buy the products. You will know how well or easily your company is able to recover from its expenses or survive the rough seas. Most new businesses fail within the first two years and this is mostly due to a lack of exposure. By understanding Amazon’s infrastructure, and showing where the market growth of your product choice will also boost your confidence and solidify your reasons for starting the business.
A FINANCIAL PLAN
This shows your cash flow and how you will sustain your business for the next three years. There will be many legal and professional expenses along with other day to do business expenses that will occur during the lifetime of your business which are important when budgeting your income and expenses.
MARKETING STRATEGY
Marketing is a major element in any business. In this section you will show how you intend to market successfully to your target market, whether through networking, print media or social media and the cost that will be associated with your intended campaign. Selling on Amazon goes very well with having a storefront. You can also become a wholesaler with any product sell to other businesses while making a presence on Amazon.
EXECUTIVE SUMMARY
This is simply a shortened version of all other areas you covered in details. Which is an overview of your business concept, the structure of the company, management and ownership. It will also clearly state your long term and short term plans for the company as well as how you intend to achieve those goals. What knowledge you have of the market, how you intend on reaching such customers and what’s your market advantage to compete successfully.
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