Solid Business Plan Critical for Success

Author: Keith Huggett

For many companies, growth comes with forming a business partnership. Combining forces with another individual or company that complements your strengths and weaknesses is an excellent way to expand quickly and with less capital. However, no matter what business path you decide to take, having a strong business plan in place is critical. Consider it a road map to success. A solid business plan will be helpful in not just enticing investors, but also for keeping your business running smoothly.

Your business plan should include the following components in a clear, concise document:

• Describe the marketplace gap that your company fills. Whether you offer an innovative product that no other company has, or simply provide an unparalleled customer service experience within your industry, the first step is defining the gap your company aims to fill.

• Explain how your company fills this gap. What product features or unique service offerings does your company provide that others do not?

• Define your market. It is important to fully understand the size of your industry and how your company fits into it. You should also describe your target customer in this section.

• Outline your business model. You are presumably in business to make money; your business model defines how you will do this effectively.

• Understand your competition. Who else sells a product or service similar to yours? What advantages do you have over them and are they sustainable?

• Describe your sales strategy. In real life, "If you build it, they will come" is not an effective marketing strategy. You need to know how you will generate new customers and promote sales growth from year to year.

• Have an exit strategy. Do you plan to form a business partnership, keep it in the family or sell to a competitor in five years?

If you need help with developing a new business, forming a business partnership or tax planning for your existing company, contact the professionals at The Tax Office, Inc. We can help you with the day-to-day tasks of bookkeeping and the bigger picture strategy issues that every business faces. Contact us today to learn more.