How to Turn a Good Idea into a Great Business Plan?
Here at ResumeWritingCenter.com, we meet a lot of people who are struggling with their lives, trying to fir into the careers they do not belong in and pretending they want to be where someone sees them. It is both sad and silly, as some of these people just do not believe in themselves enough to start their own business going what they love and can do. So we have decided to create a business plan checklist, for all those people who come to us and for the others out there explaining how can you transform a good business idea into a realistic business plan.
Stages Necessary to Evaluate a New Business Idea
So you have an idea. You think you may create a successful business with it or just think people may like it. Where should you begin? We will provide you with a business plan checklist by the end of this article, but let’s look at the things you need to explain to the person you will borrow your money from.
#1 The problem
The idea behind every successful enterprise is solving a problem people have. You need to evaluate how many people may be facing this particular issue and whether they will be eager to pay someone to solve it.
Many people think that it is enough to have the desire to earn money in order to have a successful business, but Lord could they be more mistaken? Let’s take an example of iPhone. Steve Jobs saw an opportunity of creating a new product that will solve multiple problems that people had back in the day. It has been more than 10 years ago, but the product is still much-in-demand.
#2 The solution
If you are starting a business, you are going to offer a solution to a problem some people may have. Let’s say you are living in the small community has had very little access to vegan/Indian/non-gluten products. So the solution will be to open a small shop that will purvey the community with this type of products. Or let’s say you live in the city that is next to a tourist attraction, however off the main road. You can open a B’n’B facility to let people stay while visiting the attraction.
What Other Aspects do You Need to Think of and Things that Should be Included in an Entrepreneur Checklist?
#3 The product or service
The process of business opportunity identification includes also an in-depth analysis and detailed description of the service or product. Let’s take the same example with a product shop. What specific products are you going to sell? How versatile can your product mix be?
#4 The market size
Every business venture has to be profitable. So before opening a new business, you need to find out how many people are interested in using the services you are going to offer or purchase the products you are going to sell. How much money can they spend on it?
#5 The competitive advantage
Did you ever think that there may be other people working on the same problem and planning to open a similar business? How can you stand out from the rest and where do you stand on the competitive landscape? Can you offer a discount? Can you support a local non-profit giving let’s say 5% of every purchase people make? Or maybe you are advocating a sustainable approach to either environment or community development?
Think about things that can help you be special and draw attention.
#6 The target customer
We are not talking about all that silly description that marketing people keep creating, like ‘this is Josh, he is 35, dating, driving a Toyota and going on vacation twice a year’. Seriously? Do you know a Josh like that? Me neither. Think about real people that you are going to meet. Let’s take the shop example. Can you interest housewives into preparing healthy meals, proving that average price will remain the same? The idea here is to understand that you can create a product theta meets the need of many people or at least the number of people sufficient to keep your business running.
If you need someone to finance business ideas, you will have to provide as many details as possible. while this is one of the most intimidating parts, it is also one of the most important. You may have already made some calls or did some research, so you have an idea of how much the rent and salaries would cost.
You have to cover an approximate demand for the product and the way you will generate was, as well as potential payoff period.
You will have to think about the begging of your operation and amount of money you will charge. There is no right price here as you will have to find it out for yourself with trial and error method.
The main idea here is to think all the expenses through before asking someone to invest.
Business Plan Timeline
Speaking of the payoff period, you will have to at least roughly draft the timeline, covering preparation period, opening and the period needed to return the investments. If you think that you will immediately start making money and will earn millions, you may need to rethink the concept.
How to Evaluate Business Opportunity and Idea?
Once you have all of the above-mentioned aspects covered it is a time for critical evaluation of the nosiness idea. If the market big enough to keep you running? Are your target clients capable of paying for the product and interested enough to actually pay for it? Will you be able to reach enough people in order to pay the bills and have some profit?
And but the way, do you think you can deal with taxes on your own or you will have to hire someone?
Keeping this in mind, think about your idea once more. And if you think you can do it, that GO! And as we have promised before, here is a business idea evaluation checklist (available both as an image or a PDF file for you to print out).