For a business to function correctly and ensure continuous development and competitive presence in the market, it should be well-planned. According to McKenzie (2017), a business plan is a cornerstone for business survival and profit-making perspectives. The ability to predict the possible scenarios of the company development at the initial stages and the articulation of the mission, purpose, and goals of the planned company predetermine the success of the overall endeavor. Several key strategies for creating an effective business plan might be identified.
Firstly, an effective business plan addresses the availability of resources for launching an entity and the perspectives for continuous development given the market situation. As stated by Turner and Endres (2017), adequate business planning “enables owners to position their businesses to outperform competitors when faced with conflicting demands and limited resources” (p. 39). Therefore, resource planning and market analysis are essential strategies for an effective business plan. Secondly, the analysis of industry positioning and the identification of target clients as important strategic determinants facilitate business plan quality (Wetherill, 2018). Thirdly, financial projections with accurate calculations of revenue and expansion prospects are another strategy (Neel, 2020). Finally, the approaches to “understanding community needs” by identifying the market demand using market analysis and other tools allow for creating an effective business plan (Wetherill, 2018, para. 7). Thus, the most important strategies for effective business planning include both financial analyses and market assessments.
In my experience of launching and developing a loungewear brand, I used these strategies to create a business strategy. Within the context of the fashion industry, the strategies related to market analysis seemed the most useful since they allowed for identifying the ideal client and the community’s needs and market demands. In addition, financial projections and worst and best scenario financial projections were beneficial in terms of ensuring business survival. Having such knowledge, one can meet market demands by adjusting the business strategies and decision-making accordingly.
References
McKenzie, D. (2017). Identifying and spurring high-growth entrepreneurship: Experimental evidence from a business plan competition. American Economic Review, 107(8), 2278-2307.
Neel, B. (2020). Clearly business plan. Baylor University. Web.
Turner, S., & Endres, A. (2017). Strategies for enhancing small business owners’ success rates. International Journal of Applied Management and Technology, 16(1), 34-49.
Wetherill, A. (2018). Steps to a successful business plan: Knowing who you are and who you want to serve builds a strong foundation for private practice success. The ASHA Leader, 23(7), 40-41.