As many wise men have said, failing to plan is like planning to fail. Business plans are not only for large corporate ventures, but they are also important for small startups. Here are the essential steps you should take to create a business plan for your next business venture.

What is a Business Plan?

Essentially, a business plan describes what the business is and what the future of the venture will look like in terms of products, sales, and marketing. It sets forth the brand message and the mission of the venture. Most importantly, the plant should clearly outline how the idea is going to succeed. Sometimes an effective business plan can be written on a single page; however, the traditional format can exceed 30 pages.

Research

The first step before penning down your plan is to research some facts about your venture. You need to determine if there is enough demand for the product and if the venture is financially viable for generating a profit. You should thoroughly investigate the product, industry and the competition of the product in order to project how well your idea will pan out. Don’t only read about it, but also talk with people who are potential customers.

Determine Plans Use

Before you begin writing the document, decide who will be seeing the document and for what purpose. That way, you’ll know how lengthy the document needs to be and what are the essential elements that need to be included.

Branding and Company Culture

To develop an accurate picture of your company it is crucial to create specific company branding and company culture. Figure out who your customers will be, what your brand message is and what products and services you will offer.

The Money

How much money is this going to make from one year to the next? Figure out how the sales and profits will develop, and figure out how to convince investors or partners that these projections are valid.

Marketing

There are many ways to promote a business. Some will be more effective for your venture than others. Put together a marketing strategy that considers the budget, demographics, and channels of communication toward the target market.

Anyone who is going to produce and sell products or services should create some form of a business plan. The exception could be a self-employed person or freelancer who is just picking up some cash from a side-hustle. In any case, don’t underestimate the importance of having a solid plan for any venture.