Perhaps you think that developing a viability plan for your business is not necessary: not surprisingly, some entrepreneurs succeed without carrying it out and, with a good idea, solid business skills, entrepreneurial drive and a little luck, they build successful businesses.
However, good planning can make the difference between success and failure . When it comes to your business dreams, you must do everything you can to set the stage for success. Next, we show you a complete guide to prepare a feasibility plan in which we will explain the sections that a document of this type should contain.
Summary to develop a feasibility plan
The summary is a brief description of the purpose and objectives of the company. Although it can be difficult to fit on a page or two, a good summary includes:
- A brief description of products and services .
- A summary of objectives .
- A broad description of the sector and market .
- A justification for feasibility (including a quick look at your competition and your presumed competitive advantages).
- A description of the growth potential .
- An overview of the financing requirements .
A great business solves customer problems. If your summary cannot clearly describe, in a page or two, how your business will solve a particular problem and make a profit , then it is quite possible that the opportunity does not exist, or that your plan to take advantage of a genuine opportunity is not well developed.
Think of it as a graphical representation of your business plan . Focus on helping a reader and entertaining him with a great idea of what you plan to do, how you are going to do it, and how it will be successful.
Business necessities
What problem does your business solve for your customers? If you don’t meet the needs of your customers, you will have a hard time developing your business. If you’re not sure, try talking to your potential customers and ask them what they like about your products or services. Why do they choose you over other alternatives?
Your solution
How do you solve the problem of your clients? What products and services do you offer? Describe your product or service and why it is better than the competition. Basically this section is summarized in: if someone asked you what you sell, what would your answer be?
Competence
What products and services are your customers currently choosing over yours? How do you differ? What makes your business and your products better than the alternatives that exist?
Target market
Who is your ideal client? Describe your ideal customer. Who are they? Be as specific as possible: age, gender, shopping habits, etc. If you are targeting different types of people, create market segments for each group.
Sales and Marketing
How will you market your products and services to your customers? What are your sales channels or ways where you will sell your products? If you sell online, your e-commerce is a sales channel. If you also have a physical store, this is another sales channel.
What will you do to market your business? If you plan to buy advertising, list the types of advertising you plan to use . Remember that different markets may need different types of marketing strategies for your product to reach a greater number of potential customers.
Budget and sales to develop a feasibility plan
How much do you think it will sell and how much will it cost to make your product or offer your service ? What other major expenses will you have when your business is up and running? What sales goals do you need to achieve for your business to be profitable?
Don’t worry about the details at first, just think roughly to get a rough idea of how your business will perform financially . You can specify the details later.
objectives
What have you achieved so far and what are your main goals for the next few months or years? This will help you stay on track and achieve your goals. It is also effective to assign goals to the people on your team so that they have real responsibility.
Team
Why are you and your business partners the right people to make your business a success? Even if only you are writing and developing a road plan, briefly describe why you are the best person to run this business. If you need to hire other people for important positions in the future, list those positions as well , even if you don’t know who will fill them specifically at this point.
Partners and resources
Do you need to work with other companies or organizations to make your company a success? Keep in mind that, if you need financing to start your business, the ideal is to find partners or companies that believe in you so that you can have an economic base , essential to make it work. For this reason, developing a feasibility plan is very useful, since potential funders of your project must have clear ideas and what your business consists of to take advantage of the opportunity.
