An entrepreneur must collect information from all formal and informal sources in order to understand the supportive and obstructive factors related to the business enterprise. Research Your Market and Products Once the vision has been identified, the company planning process starts with a thorough understanding of your business, its potential market, product or service lines and prospective customers.
A great business plan will always include a strategic and aggressive marketing plan.
Make sure your projections are conservative, especially in the first fiscal year. How will you be paid, in reference to price points and payment terms?
Failure to adequately research can result in insufficient resources being budgeted, overspending on certain functions and loss of key employees at critical junctures. You determine the costs of producing the products or delivering the services and the marketing costs required to attract customers.
Advertising is typically the first strategy that comes to mind for many new entrepreneurs. Income and cash flow statements must be preceded by operational statements setting forth the primary planning assumptions about market sizes, sales, productivity, and basis for the revenue estimate.