How to Evaluate the Performance of Your Company Based on Your Business Plan

A business plan is one of the most important documents that is needed for the betterment of the business. It includes all the need to know strategies, marketing techniques, sales techniques and financial forecasting methods that will be used to increase profits and revenue of the business. However, writing a business plan is no walk in the park. It takes a lot of time and concentration and is one of the biggest responsibilities that will be undertaken. For this crucial task there are dedicated people called business plan consultants. They will be the people who take the ideas that the entrepreneur has and converts it into a document that will be viewable by the whole world. Since this is a very big responsibility business plan consultant fee is a bit high. There are many factors that affect a good business plan and a great business plan will help the business clarify the business idea, identify potential problems in the business, find out objectives of the business and monitor the progress of the business. Since this is a very important document it is vital to keep a keen eye on the following factors when writing the business plan.

Executive Summary

The executive summary is the highlight and the brief description of the entire business. This has to be highly detailed but short enough so that a potential investor is able to read and understand the status of the business. It does not mean that it has to be limited to one or two pages.

The executive summary will include the highlight of the business concept which will describe about the product or service and the market that they are being offered. Then there are the financial features which talks about all the sales, profits, return on investment and cash flow. Then the summary has to mention about the financial requirement that is need to invest in the business and talk about the capital and how to expand the business. The current position of the business will be stating about the business’s present state and how it got here. Finally, the major achievements of the business is needed to be mentioned so that the potential investors could be impressed by the achievement that the business has done.

Business Description

The business description is about the details of the business. This should not be a highlight about the entire business like the executive summary but the in depth analysis of the business. The description has to start with a short introduction which states about the past, present and future of the industry. Here you should mention about the markets that the business will be interacting with and the future market places that business will be willing to interact with. The products or services that the business is still developing should be thoroughly discussed here so that the potential investors who have got an idea and are willing to invest in the business can get a thorough knowledge about it.

The structure of the business has to be described in the business description. The hierarchy of the business and the business places should be described in detail. The legal considerations of the business should be thoroughly stated so that there is clarity for everyone.

Market Strategies

When developing the market strategies there has to be a lot of market research done on the market place. This will give the business entrepreneur a very good idea about the potential market and how he can use the market to increase the profits of the business. After observing the market the company will be in a position to identify the strengths and weaknesses of the business and will be able to develop a system in order to identify the potential opportunities and threats. These studies will also be able to develop strategies to forecast the market place’s prices and when to supply more goods and services. These has to be clearly mentioned in the business plan so that these strategies can be used when necessary.

Pricing and Distribution

The process of pricing and distribution has to be clearly detailed in the business plan. The descriptions about all the prices must be mentioned in detail in this section. How the business can lower the prices when necessary and how t react to the fluctuating prices has to be mentioned in detail. The process of distribution of the products until it reaches the hands of the customer has to be clearly stated.

Competitive analysis

The potential competition in the market place has to be studied and noted down in detail for the writing of a good business plan. Here all the strength and weaknesses of the competition should be monitored and noted down. This will be very helpful in countering to the completion which will be vital for the success of the business.


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The Objective of Network Marketing

In recent years, the concept of network marketing has really been taken to task. Many people are unaware that this type of business is put under a microscope and sometimes for no good reason. Many MLM schemes have come and gone in the last few decades, leaving many people penniless and wondering why they had ever invested in these companies. The promise of making a fortune, with thousands of other people working under you, is something that is very alluring. Fortunately, network marketing is actually a legitimate business that still offers quite a few opportunities for people looking at starting a business in this industry. In this article, we will discuss the objective of network marketing and why it is such a great business model by which to create a home business.

Too many people have had problems with scams and con-artists who are trying to push themselves, and their companies, often as MLM companies. Like the Ponzi schemes that robbed so many people of their money years ago, companies that are actually pyramid schemes take people’s hard-earned money year after year. The difference between a pyramid scheme and a traditional network marketing company is that the guy on top is not always the one who earns the most money. Of course, the president of any company, or its founder, will generally earn the largest percentage of money company-wide. However, with MLM, many people who are far down the traditional down-line can actually make more than those above them depending upon their individual efforts.

When looking at MLM, you neet to realize that the objective of the company is not merely to build a down-line and hope that other people make money for you. The actual objective is to motivate people who you meet, and people who join these companies to aspire to make their lives better through this type of home business. Obviously, it is not for everyone. Not everyone is geared to create a business of this magnitude since it requires a large amount of interconnecting with people who you may not even know. However, as soon as you understand the objective of these types of companies, you can use that as a catalyst to move yourself forward, build your business, and help others do the same.

The top reason for having this mindset is that as you help others, you also help yourself. All of their efforts will inevitably help you earn a living because you get a percentage of the money that they actually bring in. In the same way that a real estate broker earns money from the realtors that are under them, MLM works the same way, yet the down-line can extend many thousands of people.

Now that you know the objective of network marketing, and the companies that promote this business model, if you ever decide to do this for yourself, you will have the proper foundation by which to succeed, as long as you give it a solid try and use the strategies that we have presented.


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