Five simple steps which would help you craft a comprehensive Business plan. If you have a plan in place with clarity then it keeps you prepared for the challenges.
Read the last point if you want to know about Business Plan Document which is must to have before you start a Business.
Spy your competitors
Spying your competitors does not mean that you try to get the confidential details of other businesses. However, it means that you try to understand the success formula and replicate it in your own way. Competitors do not essentially mean that they are your enemies. Even cut-throat competitors can be good friends. Before starting your venture if you understand the success journey of the people who are already there at the top gives you a better understanding of the service you are going to provide and might give you a better understanding of your approach as well.
You must try to understand the challenges in your field and then try to analyse the approach which your competitors had taken to solve that issue. You must make a note of the mistakes committed by others in your field and try avoiding them.
It is completely fine to replicate the ideas
Do you know? Uber was already there when Ola launched, Paypal was already there when Paytm started. Amazon was there much before Flipkart started. It does not mean that one copied the other. If someone is trying to change the world for better then why not start something similar but operate in your own way. Ideas can be the same but implementation, operation, management will be completely different. And who knows you can do better than those who were already there. It depends on how well you understand the market.
Know your audience
If you open a Fish selling shop in a colony with mostly vegetarian people then 99% chances are that you are bound to fail. Hence it is very important to know your audience and what exactly they need. This is not as simple.
Here is a very simple case study. Many Pubs opened in a time span of 6 months in the same area. One pub clearly became more popular than others. The pub which was attracting more customers did not have the best infrastructure, they did not have the best staff however still for some reason they were doing better.
When we analysed we could figure out two major reasons. The people living in the localities around those pubs were mostly of the age group 22 years to 40 years. Most of them who came out frequently were those who were bachelors. So people coming out must have been of age group 22 years to 32 years approximately. The crowd going to these pubs were mostly local. If people come from far away areas of the same town then they prefer going to a bit formal environment. However, if you just walked out of your house in shorts you would prefer a casual set up.
Two factors which went there way were:-
- The prices on their menu were very competitive.
- The Pub was situated in the terrace of a commercial building. This gave it a very casual and freestyle ambience.
The combination of lesser price with a casual ambience made this pub attract more crowd.
Decide the Services you are going to provide
It is very important to understand the services you want to provide. You can divide the service into two parts:- Primary and Secondary. You must always focus on your primary services. If your customers would like the primary service then the secondary service will pick up on its own.
Prepare your Business Plan Document
Often we discuss, plan and finalise the various aspects of the business. However, if we do not note them down then chances are that we might forget some critical points. Therefore it is very important to document each and every critical point discussed.
What does a Business Plan Document look like?
Entirely depends on you. But it should cover all the important points.
You can have below points in the document:-
- The objective of the Business
- Services to be provided
- Audience Selection
- The initial plan of Operations
- Capacity Plan
- Backup Plan
- List of Competitors
You can always alter the document as per your needs.