In this article I’ll show you (1) what a business plan is, (2) why, when and for whom to write the business plan, and (3) the elements of a good business plan.
A business plan is a 30-40 pages long description of how you want to build your company.
start with rough marketing assumptions and later distinguish between marketing channels, customer segments, products and regions).
Now, you might need some funding because you are not profitable yet or because you want to finance a larger expansion (more products, more countries).
Why make the effort and writing 30-40 pages when you could focus on product development or sales?
There are several reasons why with some business models you should only write an abbreviated version of a business plan (we will cover this in another post).
You need to show which channels have the lowest customer acquisition cost, amount of customers and product perferences of customers.
Generally, you can advertize your product via these advertising channels: Furthermore, your business plan should state whether you already have some signed marketing or sales partnerships. When you have developed a specific product and you can piggy back on a larger distributor to sell your product to thousands of people.
Make sure you describe why your product or service solves the problem in a more effective or efficient way, so you will have a value proposition over competitors.
Your business plan should also specify the customer benefits of your product (making something faster, cheaper, more reliable, more effective, more beautiful).