Business Plan for SRO Company and Trade LicenseWhen starting a company ...Many people can't wait to get started. But ... Any business activity should be planned and calculated. Writing this can take time. A lot of it.
MarketingCalculating the revenue and costs alone is not enough.
Even if your product / service is absolutely fantastic, the public needs to know you exist.
For that reason you need to think about marketing and how to reach your clients.
Marketing, except for Personnel, is probably the largest expense in a (starting) company.
For example: the response to sending leaflets is 0.2% - 2 reactions out of 1000 prospects.
Costs for a 1000 have been made, and that was only just for once.
Internet is a great way to advertise, but a prerequisite is a good website and even more important: customers need to be able to find your website. This requires getting your website listed on popular sites, SEO (Search Engine Optimization) and various other techniques to make your pages stand out from the rest.
Once you can't advertise (in one way or the other), you lose the ability to attract much needed customers, and in the meantime the other costs don't stop and you run out of money before your business has really lifted off.
Businessplan not only for InvestorsAn other common misconception is that a business plan is only needed if you want to attract investors.
That's not true. In fact, you are the biggest investor, considering the money, time, nerves and cafeine you'll put in. It is a very good idea to really take the time to estimate how realistic your plans are and what scale they will be, given your financial possibilities.
If you are planning to attract investors, you need to sell your idea to them, so you need to write it down in the way they want to read it, not how you think it should be. If there is a large mismatch between how you see it and how they see it, 'they' might not be the right partners.
Note that very few investors will give you money if you yourself are not able to finance at least a part yourself, and getting a loan from a bank is for a starting business very difficult, unless the bank is convinced of your plans.
Evergreen Startup ErrorsA couple of very common errors are:
- under-estimating the startup- and running costs,
- under-estimating getting the right people on board,
- under-estimating salary costs,
- having too little financial reserve for difficult times.
The BusinessplanA business plan has at least the following elements:
- the business - What type, Where
- the team - Who, Why, for hoW much
- the product - What, Why, What price, What competition
- the market - Who, Where, When
- the marketing plan - hoW, Where, When, hoW long
- the financial plan - hoW much in, hoW much out, hoW much left
- the investor - hoW long to get hoW much out
A short, clear, down-to-earth plan is better than a wild speculation with enormous profits, and don't be surprised you will have to cut seriously the costs and expectations to get anywhere near some kind of a result. SWOT analysis and other simple tools are very helpful to determine your chances on the market.
Altogether this may take a month or more, because you need to think, write, re-phrase and calculate several times to get your business plan in optimum shape.
But: every penny invested in the business plan will earn itself back. It forces you to prepare and avoid expensive mistakes by not having an overview or not doing things in logical steps.