Having a business plan is a roadmap to success

If you don’t know where you’re going, any path is fine. But, if you’re planning for success, taking the right path is critical. A 2015 business plan is an essential roadmap for business success.

Business plans differ based on individual details, but there are some basic general concepts that apply to most businesses. Several important planning steps are required. This article will highlight these key steps.

Describe your company

Your business description provides information about what you do, what sets your business apart from others, and the markets your business serves. When making your written business plan for 2015, include:

• Describe the services and/or products that your company provides
• Describe the customers and markets your company is targeting
• Describe the problems your business solves for your customers
• Describe how your products and services meet these customer needs
• Describe the competitive advantages your business has, such as its location, knowledgeable staff, efficient operations, and ability to solve problems.

Describe your target industries and customers

Describe what industries your potential customers operate in. List the major customer groups within your industry. What are the critical needs of your potential customers? Are those needs being met? Are you able to meet the needs of your customers?

Reduce your target market to a manageable size.

Many companies make the mistake of trying to appeal to too many target markets. Remember, you can’t be everything to everyone. Select your targets carefully.

Describe your sales and revenue goals for 2015

Realistically, based on past performance, what gross income (sales/commissions/fees) can you expect?

Describe the Clients that will Contribute the Income

Realistically, based on past performance, which customers do you expect to provide the revenue? Explain the logic behind your calculation and conclusions.

Describe your communication strategy

How are you going to reach your customers? Consider using a combination of the following tactics: promotions, advertising, public relations, personal selling, and printed materials such as brochures, catalogs, flyers, etc. Decide which one works best for your business. You can’t afford to use them all.

Describe your fees, commissions and pricing structure

Plan ahead where, when and to whom you will charge what prices. Avoid falling into the trap of offering unnecessary discounts and concessions.

Describe your financial projections

Are you going to seek external financing? Does it have adequate internal financing? Develop your financial projections after you’ve analyzed your marketing goals for 2015 and set clear targets; that’s when you can allocate resources efficiently.

Summary

Make sure your 2015 business plan matches your availability of funds. Be sure to acknowledge the business assumptions you’ve made in your projections. On a monthly basis, check the actual results of your business against your projections and assumptions. Identify the causes of missed targets. Make correct assumptions and projections on a monthly basis. It’s much better if you catch errors early, before they do any damage. Planning for a successful 2015 is an ongoing year-long project, not a do-it-once-and-forget-it project.