Start-up requires a lot of planning along with basic funding. People usually focus on funding and often forget to make the business popular. The best way to implement a start-up is to make a roadmap to achieve a target. The basic target is to sell the product and earn money. However, it is not that easy without a proper roadmap. So, the owner will have to make an outline business plan. Usually, there are two types of business plans – Traditional and lean business plan.
Traditional Business Plan
The tradition business plan is a detailed plan which covers all the key factors of the business. It is not an outline but a detailed descriptions on the need as well as the pointers on how to achieve those key factors. It can be of 10 to 20 pages and it consists of executive summary, company description, market analysis, organization and management, service or product line, marketing and sales along with funding request. The report might take days and if you want a shorter overview then lean business plan is perfect.
Lean Business Plan
Lean business plan looks like an outline and it is covered only in one page. It takes an hour to make the report and it covers all the major key points required to boost-up the working of the business.
- Key Partnerships – The basic external businesses required to run your business such as suppliers, distributors, contractors and partners.
- Key Activities – How can your business gain more consumers? Selling strategies and making a mark in the economy.
- Key Resources – Customers value different things and it is important to count staff, property and facilities.
- Value Proposition – Find the one USP that would make your business look unique and attractive.
- Customer Relationships – Create a path where the customer can interact with the business directly either by physical or digital mode.
- Customer Segments – Business depends on the demand and demand is a byproduct of only one group of people. So, make a clear target about the type of the audience.
- Channels – It is important to interact with the target audience to promote the business. Create channels that include various methods to interact and understand the demand of the customers.
- Cost structure – The capital would be enough to start the business but to sustain the business, you will need a proper cost structure. It covers every single investment and profit earned.
- Revenue Streams – There needs to be some method where the company can earn money directly which would not include selling the product. Such strategies can be planned that include membership fees or other promotional offers.
Thus, lean business plan will provide a basic outline for the business. Once, the start-up gets the desired funding, they will have to work on making their business work with these methods. The outline can help in staying on a particular timeline for the business that guarantees proper incomes without any delays. The outline will work as a roadmap towards reaching the destiny of more profits and a successful business.