Making your business plan golden
Writing The Business Plan
As a budding entrepreneur you’re about to sit down and begin the arduous task of drafting a business plan. The typical reaction is a speedy attempt to whack an awesome strategy together. Before you start this step, you need to conduct a feasibility analysis. This preemptive insight provides a thumbs-up or thumbs-down regarding the viability of your new venture.
You’ll save 80 percent of your time if you conduct a formal feasibility study prior to entering business plan draft mode. The analysis is eerily similar to Pareto’s Principles, the law of the vital few. The core of the principle is a commonly applied business notion that 20 percent of any effort gets 80 percent of the job done. The focus is on the core concepts and strategic steps.
To look at this in more depth, let’s pretend you are a healthcare practice:
Statistically, 20 percent of a practice’s billing codes drive 80 percent of its revenue. Therefore, when considering opening, it’s important to access a supply of patients that pair with the top revenue generating billing codes. The greater density of these patients surrounding your practice, the less costly it is to market and access them. This means a thorough location analysis is needed to ensure you open your practice in a community with very favorable demographics. You wouldn’t know what this is without doing the feasibility analysis. Thus, this important factor would be absent from your business plan.
Four feasibility aspects to focus your attention:
- Product/service desirability
- Target market penetration
- Organizational prowess
- Financial feasibility
When you are done, you’ll know if a legitimate, sustainable, value-proposition actually exists. It’s important to understand the business plan is a working document because it’s the framework guiding all future business development. As it unfolds, it needs updating and evaluation. Don’t forget, 20 percent of your core effort is what leverages 80 percent of your business success!
To discuss the four feasibility focus areas in detail, make a no-cost appointment with a SBDC consultant. You can also call 813.905.5800 for more information.
Building the Ultimate Business Plan Seminar: Offered monthly at your local SBDC in Tampa! Our expert advice simplifies conducting necessary research to make decisions and develop financial projections. Don’t be intimidated, take the first step. The seminar includes a Free Copy of Business Plan Software & Business Plan Outline Guide!