A business development strategy is critical to long-term success and ensuring that everyone in your company works towards a common goal. So, this article will analyze the basic points in creating a business development plan.
The essence of the business development plan
The transition to market relations brings intra-company planning to a new level. Planning is vital for any enterprise operating in a highly competitive environment. First of all, intra-company planning is necessary for the management of enterprises to make the most effective management decisions.
In addition, external financing cannot be attractive without a well-defined business plan. In general, creating a separate business plan for launching any new project is rational. It will help assess its prospects, identify possible risks, and approve the optimal strategy. Moreover, a well-organized plan can avoid unnecessary expenses and losses for your business.
What should be considered?
There are many schemes and options for drawing up a business development plan. Therefore, we invite you to pay attention to the strategic map, which consists of 4 levels:
- Financial goals – a certain amount of earnings the company plans to reach, for example, after 3 years. The target indicator can be the level of capitalization, net profit, or another important financial parameter.
- Business and clients – projects and areas on which the company plans to work during the reporting period.
- Internal processes – these must be implemented for the efficient operation of the enterprise.
- The development and training of employees is the acquisition of new skills and knowledge, which are important for implementing the strategic plan for the development of the enterprise.
At the planning stage, it is necessary to move in a top-down direction: set financial goals, then determine the business directions (required processes, employee training planning, etc.). Finally, it is necessary to implement the strategy the other way around: from personnel to financial parameters, from the bottom up.
How to make a business development plan: universal rules
The structure of the business plan does not depend on the chosen direction of the business. Both the gas station, the restaurant, and the fashion boutique begin with the main sections, which must be carefully laid out on paper:
- The introduction
It displays basic information such as the type and direction of work, payback period, and indicators of successful activity. Regardless of the source of funding, your project must be clear. You are interested in how soon you will return your investments, and the investor is twice as interested.
- Description of business direction
Describe in detail what and how you plan to do. Success factors will also be a detailed description of competitors and your competitive advantages. Be sure to describe the product or service and define your target audience and its key requests. You need to determine your pricing model and benchmark your prices against your competitors. After that, you will know exactly what, for whom and how you should market.
- Marketing strategy
Promoting your business in the market will affect the quality and speed of processes, financial performance, return on investment, and overall success of the enterprise. At this stage, determine types of advertising media, ways of promotion in the market, and a system of motivating personnel.
- Organization work plan
Have you determined the optimal form of ownership and method of taxation for you? It’s time to do it. If necessary, chat on accounting forums and consult with a lawyer.
- Financial plan
The financial plan should consider all the little. If you correctly calculate all costs, you will determine the minimum sales volume to cover them.