New Business Development Strategies
While it is true that a few businesses can subsist without having a business plan…
While it is true that a few businesses can subsist without having a business plan in place, it’s likely that they are not doing as well as those who have a plan. Without proper direction and guidance, it’s nearly impossible to execute new business development strategies. Business plans provide the appropriate guidance and direction. Loan officers, partners and investors will be apprehensive in supporting your business unless the direction and vision for your company is clearly defined. We have developed an overview to provide guidance in order to assist you in establishing a business plan.
You will need to arrange funds from banks, venture capitalists and private investors. There are numerous new business development tactics for exactly this purpose: finding these investors, convincing them to join your venture and taking advantage of the financial backing you have received. Of course, this is all good information to be aware of, but each strategy assumes you have a sound business plan. There is no alternative method to persuade potential investors from climbing aboard unless they are clearly informed as to where this ship is headed and have the confidence and trust in you to steer the boat. Your business plan needs to convey your vision, provide in detail the talent and duties of your employees as well as yourself, and project your business’s growth and development.
A solid plan must prove to investors that your venture is going to be successful enough to equal the investment they originally made and then prosper enough so they are given an ample return on that investment. They will expect to see intelligent strategies in the new business development, so you must regard these elements as critical:
1. A cover letter of sorts: a straightforward overview of your business that emphasizes your plans and provides a summation of your principal idea.
2. Present the history of your business, as you most likely are not starting your venture from scratch. Even if it just summarizes the time spent in your garage tinkering or the experience and knowledge you acquired when employed for another individual.
3. Describe how the products and services you offer are going to defeat the competition. For extra persuasion, supply a full market analysis which summarizes potential customers, your competitors disposition, size of the market, and your estimation of growth.
4. Communicate the strategies for new business development that you intend to follow: how you plan to market, promote and sell the products, methods in which your plan will be enacted, and the targets you plan on reaching.
5. Lastly, provide information pertaining to financials, especially your projected profits, sales, and general cash flow. Finally, summarize all financially related information, including sales projections, cash flow and profits.
You are going to have a greater chance of being successful with a plan that is clear, fluent and rational and with a vision that is comprehensive. This overview should provide you a rough estimate on how to compose your plan, but note that it is without a doubt more detailed and complicated than just a blog posting can express. For additional assistance there are countless reference books and software, as well as consultants who concentrate on business plan development. It will take much focus and effort, but we are certain that even the best strategies for new business development will not succeed unless they are coupled with a solid and articulate business plan.