The 5 Key Ingredients For a Profitable Business Plan
Updated: Mar 4
There are five key ingredients for a profitable business plan, no matter the type of business you manage. Each of these ingredients is a critical part of a well-written business plan. You need to consider each of these elements in detail and how they apply to your own business.
In the world of business, profit tends to get overlooked. Entrepreneurs are mainly focused on revenue and not on making a profit. But thanks to your profitable plan, you'll have another approach to your business plan that will make you more profitable and successful in your said business.
#1 Your Mission & Vision
To be successful, you must have a vision. You must know where your business is and where it is heading in the future. It doesn't matter how small your business goal is; you must have a vision and a plan to achieve it.
Your mission statement should be simple enough that it can be easily remembered but also elaborate enough to explain the direction you want your
Having a clear plan to achieve these goals will guide your business objectives. Your vision and mission statement must always be in sync with each other to provide clarity & avoid confusion.
#2 Your Products & Services
What exactly are you selling? What makes them different? How are they better?
If you have a solid product or service, it will be reflected in your business plan. Ensure all the details of what makes them special and why people need them. Create a list of these products and services.
If your product or service is unique, you need to explain why.
Aside from the products themselves, you will need to consider how you are going to market them. You want your target market to be aware of what you have to offer and make them interested enough to buy it. Be sure to include this in your plan as well because it involves marketing strategies that must be implemented for your product or service to be successful.
#3 Your Timeline
Planning and scheduling. These are two things that must go hand in hand. Without scheduling, it is easy to be unfocused and scatter your resources - rendering them useless at the end of the day.
You should have a comprehensive list of everything you need to accomplish or achieve before going forward with your business. Organise the list into weeks, months, or even years to make it more manageable. Make sure that all aspects of each activity are recorded, as well as the completion deadlines for each task.
Create a timeline. The goal of a timeline is to create a plan that ensures your business reaches its full potential and becomes successful by a specific time. This will also guide you in determining how much money you need to achieve your goals within your timeline.
#4 Your Revenue and Cost
What is your target revenue? What is the estimated cost to achieve the desired profit of the business?
You should know ahead of time how much money you need to accomplish your goals, and through which means.
Determine per product or service what revenue you’ll make. Revenue always consists of two elements: quantity and price. No one can predict the future with 100% accuracy. The point is not to write down what will actually happen with pinpoint precision. The goal is to determine whether your ideas are viable, so you know what adjustments you'll have to make to meet your financial objectives.
Without costs, there’s no business. Expenses are unavoidable. Some costs are repeated, unchanged; note these in your plan. Try not to be too precise. Just write something down. It’s not sufficient to look at the costs you’ve incurred so far. You need to look ahead and determine which costs you’ll need to create to execute all your plans.
#5 The Feasibility of Your Plan
Are your goals SMART (Specific, Measurable, Achievable, Realistic and anchored within a Time Frame)? Is your timeline aligned with your objectives?
Prepare to launch your plan. Narrow down all of the details and make sure everything is in order before you begin implementing it. If you haven't already, now's the time to assess if your idea is feasible. If you’re satisfied with both your salary and the actual profit, then your profitable plan is finished. All that remains is to put it into action.
Ready, Set, Plan
You should be ready to start at least with your simple plan, so you can have a clear idea of what to expect. Before starting anything though, make sure that you are ready to handle the responsibility. The 5 key ingredients mentioned here will unfold the path of an achievable and profitable plan that can be applied to any type of business you have in mind, small or big scale.
With that said, if you want assistance in planning your year to success, please contact us here.