In Part 1 of Credo’s Business Plan Series, we outlined the mission statement and executive summary as initial, qualitative descriptions of your business. Here, in Part 2, we will explore the demand and ability to execute.
Before jumping in, take a moment to reflect on the following facts:
Accordingly, Credo’s recommendation is to create an informed business model and set of financial projections before any major investment is infused into the company or new venture1.
Your primary effort should be in keenly understanding what market you are entering. Performing market research mitigates the number-one reason for businesses failing. Depending on the industry and scope of the business, the effort will be unique. Reading trade journals, attending conventions, soliciting feedback from the community, or performing statistical analysis on local demographics are all potential avenues one can venture down to properly gauge demand. Likewise, an established mentor, third-party advisor, or business network can provide sounding boards and insights to help the trajectory of one’s journey.
The next key step is to assess your ability to execute. Through a combination of strategy and operations, your focus should now turn to how to deliver the good or service profitably. While the evaluation is dependent upon many factors, such as your business’s size and industry, there are certain core questions that need to be on your list, including:
Reflection Questions