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How to do a business plan

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This article was co-authored by our trained team of editors and researchers who validated it for accuracy and comprehensiveness. To, they cited information from 16 references. How’s Content Management Team carefully monitors the work from our editorial staff to ensure that each article meets our high standards. How plan an article as reader-approved once it receives enough positive feedback. It also received 75 testimonials from readers, earning it our do-approved status. Creating a business a will help you achieve your entrepreneurial goals. A clear and compelling business plan provides you with business guide for building a successful enterprise focused on how your personal and financial goals.

How to build a business plan

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It can also help persuade others, including banks, to invest in what you are creating. Analyze the potential markets for your business. This needs to be more than mere guesswork and involves doing accurate and intelligent research. How old are your potential customers?

What do they do for a living? Is your product or service attractive to a particular ethnic or economic population? Will only wealthy people be able to afford it? Does your ideal customer live in a certain type of neighborhood or area?

Establish the size of your potential market. It’s important to be as specific as possible in regard to your market and your product. If you want to start a soap business, for example, you may believe that every dirty body needs your product, but you can’t start with the entire world as your initial market. How many children in the United States are currently under the age of eight? How much soap will they use in a month or a year? How many other soap manufacturers already have a share of the market?

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