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What Questions Must Your Business Plan Answer?

A robust business plan is an important element for any type of business. When writing a business plan, you should know what questions it must address. Below you can find 6 questions you should answer:

  1. How Is Your Product Different?

Your product must fulfill a want or need. Figure out the need your product or service will fulfill. See whether this need is being met. If yes, how is it being met and by whom? Why should customers prefer to buy your product and not your competitor’s?

  1. What Segment of the Market Values the Fact You’re Different?

Determine the segment of the market that values the features that make your product or service different. What’s the size of this segment? After you’ve estimated the size, reduce it by the percentage of people who aren’t likely to pay what you’re going to charge in order to gain profit. Now, identify whether you can have enough volume to make your business economically feasible.

  1. Can You Protect Your Idea?

Can you defend the features that make your different so that your competitors won’t be able to get you out of the market? You should have a plan that will protect you from this. Consider protecting your intellectual property with the help of a patent, or maybe your idea cannot be copied easily.

  1. How Are You Going to Effectively Reach Your Customer Segment With Your Marketing Message?

Figure out whether you’ll reach your target customer segment with your marketing message. You should have a plan that will help you acquire customers cost effectively.

  1. Is Your Idea Viable Without a Big Investment?

Do you think it will be rather expensive to launch your product or service? If yes, you should look for ways to do this without spending too much. Consider outsourcing manufacturing and buying inexpensive equipment.

If you’ve decided to apply for business funding, it is critical to turn to a reputable business loan provider like First American Merchant (FAM) offers the best business funding opportunities in the industry and is considered a top payment processor that specializes in the high risk sector.

  1. Do You Have a Thorough Financial Model?

What about your cash flow? Focus on building a strong financial model that will help you move forward. Remember that the launch of new products is going to take much longer and require more costs than you think. Only when you have a lot of experience to launch a new product, your estimates will be accurate.

Launching a new product or service is an exciting endeavor. However, it can also be quite risky. Creating a well-thought business plan that addresses the above-mentioned important issues can help you make the right business decisions.