Your market consists of your potential customers. As we mentioned above the better you know your customer base, the easier it will be to reach them. To test the need for your product or service, we recommend that you conduct a market survey. Start with close friends and family. Ask for their opinions and suggestions. Later you can do the same in, for example, social media. Briefly explain why you want the information and ask questions that require longer answers than yes and no.
The market at large consists of all the people and companies in the world. To select a small part that describes your customers, you can make a so-called selection. The selection includes people who may be most in need of what your company offers and can be done according to start-ups can select properly at the beginning to later expand the various search areas.
Do not forget that the market consists not only of potential customers, but also competitors. Therefore, spend some time reviewing their product, price level and strategy. Don’t forget to also read the customers’ own comments and reviews if available. Competition does not always have to be a negative thing. In many cases, it can actually help you look at your product from a new point of view. In this way, you can more easily find opportunities for improvement that will make your business that little bit sharper than the competitor’s.
Your product/service is critical to whether or not your business will succeed. If you have a range in demand, there are no limits to your success. Therefore, it is important that you put extra energy into presenting your product and its benefits. You must also know how the manufacture and distribution of your product will take place. Here you should include the ecological aspect of the production, i.e. How the company works to reduce environmental impact. Another important point is the development of the range in the future. For example, there may be plans to develop a complementary product or to expand existing products.
Writing a business plan is easy, you can either do it directly on paper or in a document on your computer. Include all points above and add what you think is missing. Try to keep each paragraph just the right length – a business plan that is too short can seem frivolous, while one that is too long can make the reader lose interest.
As the business plan is a living document that follows the development of the business, it is important that you update the content regularly. Don’t be afraid to add or remove parts of the business plan if you see a need for change.
The business plan gives you a clear picture of your goals, while studies show that it can actually increase the profitability of the business in the long term. It can also be decisive for companies seeking business loans from the bank or venture capital.