Why Business Development Plan is important before starting a business?
To all the young entrepreneurs who are interested in starting up their own business, BDP is a business development plan that has all the details of your company. It includes the step-by-step process of your plans and policies that are required to turn your dreams into reality. It is necessary to make a business development plan for your company as it includes your estimation and financial planning for your business.
We also have prepared a step by step process on how to write an effective BDP from which you can take reference while making one.
A Business Development Plan includes:
Table of Contents
1. Provides direction
A business plan is essential whether you are planning to start a business or it is an established business. A proper business plan gives direction to the company and the employees. The business plan can also help you in reviewing what goals you have achieved, what changes need to be made or, the new direction the company has to go. It is important to move in the right direction and a business development plan can be useful in such scenarios.
2. Opportunities for growth
In order to make a Business Development Plan, it is important to thoroughly study the targeted market, competitors, and the price of the products you are focusing on. From this, you can identify the loopholes in the market and take advantage of them. This brings a space for growth and work right on it to make your company the best one. You can add new products and services and make new strategies to approach the market.
3. To define target audience
It is important to know the audience you are looking for so that you can focus on the product they want. The process of making BDP includes studying the market in detail so that you can provide the product required in the specific market area. It is obligated to present the right product in the right market, to succeed in the market.
4. To analyze SWOT
SWOT analysis is a simple and useful framework for analyzing the strengths, weaknesses, opportunities, and threats of a company. It is a useful technique to assess the four attributes that play a crucial role in a company. Strength and weakness refer to internal factors while opportunities and threats focus on external factors. By leveraging the SWOT analysis, a business can create strategic plans to meet the desired objectives and adapt to the changing market conditions.
5. To determine your competitive advantage
While working on a business, it is necessary to acknowledge the competitors. With the help of a proper business development plan, you can analyze the competitors. You can learn about the advantages and disadvantages of the competitors, giving you the perfect boost to work on them. It is wise to know about the weaknesses of other companies and work on those weaknesses to make your company better.
6. To plan funding
By making a Business Development plan you are obliged to make a financial statement. A financial statement includes an Income statement, Statement of Retained Earnings, balance sheet and cash flow statement. During this process, you plan all the funds, cost and sales of the company which presents you with the financial condition of the company. Proper funding planning can be useful to make smart decisions that can be beneficial for the company.
7. To set financial goals
There is always a financial goal for a company, which is included in the business development plan. In the business development plan, there are plans, policies and strategies included to reach the financial goal. Reviewing the BDP can help the company to stay on track to achieve the financial goal. Reaching the financial goal is equally important for the company to sustain itself in the competitive market.
Click here to know what will happen if you don’t make a BDP before starting a business.
Click here to check out free templates used for making a BDP.