Before starting a business, whatever it is, you need a well-thought plan. The term is a business plan or business plan.
This business plan is very important as a guide for how you start a business to get optimal results.
In planning this business, you need the most important points in order to produce a good business plan and serve as a framework for your future business.
Business Planning Purpose
- Business planning is needed before starting a business with several goals such as the following.
- Knowing clear and directed business goals and target market
- Minimizing the risks that may arise in the future
- Become a winner or be able to compete in market battles
- Create a targeted marketing strategy to achieve maximum sales
- Convince investors to invest or the bank to help lend venture capital
6 Components of Business Planning for Business Success
The following are 9 components of business planning to help you achieve your long-term goals for your company.
1. Business Description
The business description is the first and most important component of business planning for any business.
In a business description, you will briefly and clearly describe the line of business you are running along with its products and potential.
A business description can also be useful for finding business investors or providing information to all interested parties regarding the potential and development direction of your business.
2. Marketing Strategy
As a component of business planning, a marketing strategy is no less important as the foundation for the success of a business.
In creating a marketing strategy, you first have to analyze the products you sell, in terms of advantages, disadvantages, and potential market acceptance based on the price offered.
3. Competitor Analysis
Competitors or competitors are like a double-edged knife in a business.
On the one hand, competitors are natural market price mechanisms. In addition, the presence of competitors is also important for a business to maintain good quality and service.
On the other hand, competitors can be a threat to the sustainability of a business if the business loses the competition.
4. Business Design and Development Plan
The design plan for a business is closely related to the visual and brand image of a business in the eyes of the market and consumers.
The design of a business is the face you display when dealing with the public, be it your customers or competitors. Therefore, you must present an image that is attractive, easy to remember, and gives a bond of closeness to the general public.
5. Production Process Planning
Production process planning is a component of business planning that deals with how to present a product to be marketable to the general public.
This one plan really depends on the type of business you choose. There are businesses that require business owners to present products from zero raw materials at all.
6. Operational Planning and Management
Operational and management plans in planning are made with the intention that the business can run in a sustainable manner.
The focus in operational planning and management is the operational plan of the logistics company. For example, the duties and responsibilities of the management team, the budget requirements or operational expenses of the company, and the assignment procedures for each division of the company.
The objective is clear so that all plans that will be realized in the future can provide benefits and the company's survival.
Read also: Business Plan 2021: 6 Easy Ways to Make Your Business Plan
With careful business planning, a new business will be better prepared to enter market competition to get the maximum profit