5 steps to creating a winning business plan

Creating a smart business plan that begins with research and ends with a comprehensive marketing plan is the best way for your new business to be successful.

Starting a business always involves some level of risk. The trick is to minimize that risk and maximize the chances of success as much as possible. Creating a smart business plan that begins with prudent research and ends with a comprehensive marketing plan is the best way to ensure that your new business will be successful now and for many years to come. A solid business plan will minimize risk while increasing the odds that your new business will hit the ground running.

One of the most important factors of your business plan is to do research. Before you take your business to market, you need to know which products and services your customers want, how much to charge for them and what the competition looks like. Effective market research will answer these questions and ensure you have the information you need to be successful.

There are a number of important resources available to help you conduct your research including well-designed market surveys, labour statistics, and key demographic data, such as population, income levels and academic attainment. It's important to know who your prospective customers are and their ability to afford the products and services you offer before you launch a business.

If you plan to run your business by yourself, choose a sole proprietorship, which tends to be less expensive than either a partnership or corporation. A sole proprietorship will also increase your liability and could push you into a higher tax bracket. Entering into a partnership reduces your personal liability, but it also means potential conflicts with your partner and requires profit sharing. Finally, establishing a corporation further reduces personal liability and creates tax advantages, but it is more expensive and opens you to increased regulation. Your best bet is to consult with an accountant and a tax attorney before deciding on your business structure.

Be sure the name you choose immediately tells them who you are and what you sell. Your name should be unique and memorable to separate you from your competition. You can perform a corporate name search to make sure no other business already has your name.

Make sure to locate your business in an area with high foot and vehicle traffic to increase visibility and ensure that there's adequate parking available. Use the demographic data you obtained from your market research to be sure prospective customers in that area are a good match for your products and services.

Marketing has changed dramatically over the past 20 years due to the rise of the Internet and the emergence of inbound marketing strategies like using social media. Unless you know a good deal about these emerging trends, you should work with a reputable marketing firm that can help you create a winning plan. The most important factor is to have your complete marketing plan in place before you open your doors to the public.