Every year, thousands of new businesses are established with an unbelievably high business registration rate. Sadly, only a fraction of them has a chance of surviving. According to the Bureau of Labor Statistics, about 20% of small businesses fail in the first year and about 50% in the fifth year. The statistics are showing that the failure rate in business is very high. What then accounts for these failures?
One of the reasons that studies refer to is the “lack of a business plan”. Business plans are like road maps, you can go without a map, but you will have a high chance of getting lost along the way. Owners with a business plan see 30% faster growth than those without a business plan, and 71% of fast-growing companies have a business plan. Before diving into this, let’s define and find out what a business plan really is.
What is a Business Plan?
In essence, a business plan is just a plan of how your business will work and how you will make it successful. In other words, this is a document that outlines your business idea and business model, product or service, who will be the target market, and the tactics you plan to use to reach the trade. successful. No two businesses have identical business plans, even if they operate in the same industry.
Business plans can also be useful as a guide to keeping a new business on track, especially during the first few months or years when the path ahead is not so clear. However, it’s not just businesses that benefit from a business plan. Older companies and large corporations also need to adjust their business plans to adapt to the new business environment and unpredictable market changes.
The Advantages of a Business Plan
A detailed business plan provides a bird’s-eye view of the entire framework of an establishment so it has a number of benefits that make it an important part of any organization. Here are a few ways a business plan can provide a significant competitive advantage.
- Proper planning helps businesses set realistic goals and specify a time limit to achieve them.
- Organize and allocate company resources efficiently.
- Gives the organization the ability to anticipate future difficulties
- Reflecting on lessons learned from the past to avoid in the future
gives investors an in-depth idea of a company’s goals, structure, and effectiveness. It helps to ensure their confidence and encourages them to invest.
- Building a business plan allows you to predetermine answers to some of the most important business decisions.
- Help you better understand your competitors and the market in which you operate on a broader scale.
Some popular business plans today
Resale clothes online
This is a pretty popular business idea for girls who shop a lot. Clothes that have been worn a few times and no longer need to be used, you can resell online for less than the original price without having to waste. It is a way to help you have more income to buy more new items.
If you are an expert in fields such as: Yoga, baking, website design, marketing, etc., open an online class to provide knowledge to those in need. To do this, you need to pay attention to building your personal brand, letting people know your abilities and expertise increases the likelihood of selling better courses.
Currently, there are nearly 3 billion smartphone users worldwide. Along with that, there are many mobile applications born to introduce products/services of units to users or sell applications. Therefore, application development is considered a hot direction in the market today. If you are a tech-savvy person, try your hand at this field to increase your income!
Professional organizers are good problem solvers and they help people solve problems big or small. They work with their clients to identify the best uses for their home space and the steps needed to get there. The ultimate goal of a professional organizer is to make customers’ lives better by helping them make the most of their space, and organizing at home helps them achieve this.
Cleaning Service means a business that provides general cleaning services for premises such as shops, offices and residential premises including household items such as carpets, sofas and curtains for a fee. the scope of the cleaning service is agreed upon between the End User and the Service Provider prior to the commencement of the service. This service is divided into 2 main categories: Residential cleaning and commercial cleaning.
Home care services
Home care is professional care provided in your home to support someone living safely in their home. Home care services can help people who are older and need support to live independently, have chronic health conditions, are recovering from medical care, or have special needs such as a disability. You can get almost any kind of help you want in your own home.
Doing Digital Marketing is a strategy to use the internet for marketing activities. It can be said that Digital Marketing is important and necessary for companies/organizations today. Therefore, this is considered a low-capital business idea even with a capital of 0 dongs. You can also work as a freelancer anywhere, the opportunity to increase your income is good.
We often buy a product because we like its packaging, Browse a website and notice how its content is presented, or even complement a magazine for its attractive design that makes us passionate, all of this is the result of a successful graphic design process. Graphic design companies are in the process of creating visual content in the form of pictures, illustrations, typography, icons, photos, etc. to convey the message. By applying the technique of visual hierarchy and page layout, designers use typography and images to meet the specific needs of users and focus on the logic of displaying elements in interaction design to optimize the user experience.
Frequently Asked Questions
How should you present your business plan?
A business plan should only become a printed document on certain occasions, such as when you need to share information with outsiders or team members. Otherwise, they should be dynamic documents that you maintain on your computer. You need to constantly make adjustments and regularly evaluate the health of your business.
Why do Business Plans fail?
Even if you have a good business plan, your company can still fail, especially if you don’t stick to the plan! Even when following the plan, if you make poor assumptions in your projections, you could end up with an out-of-control budget and cash flow shortfalls. Because markets and economies are always changing.
In short, a business plan is a detailed road map that explains what the company’s goals are and how to achieve them. You should regularly review your business plan to make it as accurate, realistic, and detailed as possible. Remember that a business plan grows with your business, so it’s an important part of your entire journey- not just the beginning.