Roles should be established for the entity as if it were mature and successful. Some will be direct competitors, some indirect, and some will be substitute products to a parent trying to keep a child calm on an airplane, a coloring book is a substitute for a Game Boy.
What pain points does it solve? How much will those people cost me, month by month, year by year? Then you need to make sure that your materials — your pitch deck, executive summary, and business plan — answer ten critical questions.
Most investors say that the startup team is more important than the idea itself, because a good team can fix a mediocre idea, but a mediocre team is likely to fail even if they are pursuing a great idea. What are the economics? What need are you addressing? How much can I realistically sell, month by month over the next 12 months, and then annually for a couple of years.
First, you need to explain what problem you solve. Then answer three strategy questions: What kind of overhead are you looking at? The more acute the problem, the more attractive the market.
What expenses do I need to incur before I start? Numbers are nice, but numbers without credible stories are not really answers. Who are you talking to? Use it to outline a business forecast that you can reasonably expect to meet, and then wow your investors when your private wild speculations come to pass.
What do you have that is proprietary and defensible? One of the best rules for customer service is to under-promise and over-deliver, and your business plan should follow that rule.
I want to see reasonable expectations. Investors like to see new or expanding businesses in industries that are either stable or growing because it presents them with a better chance that their investment will pay off.
Who will buy it, and how will you sell it to them? You should be strong where others are weak and you should have a number of business processes that set you apart from the crowd.
In all of these, focus on the major milestones. Find out what major players are already doing, and analyze their strong points and their weaknesses. Why do they want it? It will be a document you turn to repeatedly, whether to woo potential partners and investors or to make significant business decisions.
What is your solution, and what makes it special? What personnel do I need to make my sales forecast realistic? How has it done so far? You need to identify your target customers and demonstrate an understanding of their buying habits and how you plan to buy from you instead of from somebody else.
These are part of your starting costs. Who are your competitors, and what makes you better? Humans need to focus, summarize, and plan the most important elements, not everything.
Making money means making a profit, and to do that you need to understand the cost of running a business, along with the price of your product. What running expenses alias fixed costs to I need to support those people and the sales growth?Ask questions on any topic, get real answers from real people.
Have a question? Ask it. Know an answer?
If you plan to be buried in a cemetary, have you ever wondered how long you will stay buried before you are dug up or moved? When is your Answerbag anniversary? If you dont know make one up! lol. Posted by Linda Joy a while back. Aug 06, · Top 10 Questions Every Business Plan Should Answer Newtek - Your Business Solutions Company Contributor i Opinions expressed by Forbes.
Make sure your business plan answers the right questions. Here are six crucial business plan questions that you should answer in the document. Five Critical Questions Your Business Plan Should Answer Answering these questions periodically can help keep long-term goals in mind while you adjust your immediate steps and actions.
Next Article. This is my answer on Quora to ‘what are good questions to answer in a business plan?’ Congrats on your question. Basing your planning on what questions to answer, as you suggest, is a really good way to do it. Your business plan should describe in detail the particular challenges you face and how you plan to overcome them.
The challenges can be part of the business environment you compete in — a crowded field of competitors or regulatory uncertainties, for example.Download