Good research before writing a business plan is extremely important. Its the foundations you are about to put your energy, time, money and social collateral into. So its important its based on some facts.

The research conducted will be the same, if you are writing a one-pager or a full startup business plan.

1. Market Research:
   • Target Market: Identify and understand your target customers. Research their demographics, preferences, buying habits, and needs. This data can be found through Government census data, industry reports, market research firms (like Nielsen or Euromonitor), and social media analytics.
   • Market Size and Trends: Assess the size of the market and current trends. This includes understanding market growth, patterns, and potential market changes. Look for Industry publications, market research databases (like Statista or IBISWorld), and trade associations.
   • Competition: Analyze your competitors, their strengths and weaknesses, market share, and strategies. Understand what they do well and where there are gaps in the market. For this Review Competitor websites, industry trade shows, customer reviews, and business directories.
2. Industry Analysis:
   • Industry Dynamics: Study the industry your startup will operate in, including its growth rate, trends, and major players. You will need to read Industry-specific publications, analyst reports, and trade associations.
   • Regulatory Environment: Understand any regulations or legal requirements specific to your industry. This is available via Government websites, legal advisories, and industry compliance guides.
   • Barriers to Entry: Identify any potential barriers to entering the market, such as high startup costs, complex technology, or strong competition. Academic journals, industry expert blogs, and market analysis reports will provide these details.
3. Product or Service Research:
   • Feasibility: Assess the feasibility of your product or service. This includes technical feasibility, market feasibility, and financial feasibility. These can be found in Technical journals, product development forums, and consultations with industry experts.
   • Unique Value Proposition: Determine what makes your product or service unique and how it solves a problem or meets a need better than existing solutions. You will need to conduct your own Customer surveys, focus groups, and gain feedback from pilot testing.
   • Development Stage: Understand where your product or service is in its development lifecycle and what is needed to bring it to market. Benchmark your Product lifecycle with case studies of similar products or services.
4. Customer Insights:
   • Customer Needs and Preferences: Gather data on what your potential customers need, want, and expect from a product or service like yours. Some of this is available via Market research surveys, social media listening tools, and direct customer feedback.
   • Customer Pain Points: Identify the problems or challenges your target customers face that your product or service can solve. Look for Online forums, customer service data, and direct customer interviews.
   • Customer Feedback: If possible, gather feedback from potential customers through surveys, focus groups, or interviews.
5. Financial Analysis:
   • Startup Costs: Calculate the initial investment required to start your business, including equipment, inventory, and operating expenses. Get Supplier quotes and industry benchmark pricing.
   • Revenue Projections: Estimate your revenue streams and project your sales for the first few years. Use Sales data from similar businesses, industry sales reports, and financial models.
   • Break-even Analysis: Determine how long it will take for your startup to become profitable.
6. Marketing and Sales Strategy Research:
   • Marketing Channels: Identify the most effective channels to reach your target market, such as social media, online advertising, email marketing, or traditional media. Search for Digital marketing analytics, industry marketing reports, and case studies.
   • Pricing Strategy: Research how to price your product or service competitively while ensuring profitability.
   • Sales Strategy: Develop a plan for how you will sell your product or service, including sales channels and sales tactics. Further information can be found in Sales strategy templates, industry sales training materials, and sales performance data from similar businesses.
7. Operational Research:
   • Supply Chain and Vendors: Identify potential suppliers, manufacturers, or distributors and research their reliability and costs. Look for Trade directories, industry expos, and supplier databases.
   • Technology Needs: Determine the technology and software needed for your operations, including any industry-specific tools. This can be found at Technology vendor websites, industry technology reports, and IT forums.
   • Location and Facilities: Research the best location for your business and the type of facilities required. Again its available through Real estate listings, local business regulations, and location analysis tools.
8. Legal and Compliance Research:
   • Business Structure: Decide on the most appropriate legal structure for your business (e.g., sole proprietorship, partnership, LLC, corporation). Can be found at Government business websites, legal advice websites, and business advisory services.
   • Intellectual Property: Investigate any patents, trademarks, or copyrights that may be necessary to protect your business idea or product. Go online to Intellectual property office websites, legal guides, and IP lawyers.
   • Licenses and Permits: Identify any licenses or permits required to operate your business legally. Normally full disclosures is provided on Local government websites, industry regulatory bodies, and business legal guides.
9. Risk Analysis:
   • Market Risks: Assess potential market risks, such as changes in customer preferences or economic downturns. Review Economic forecasts, industry news, and market volatility reports.
   • Operational Risks: Identify risks related to operations, such as supply chain disruptions or technology failures. Find Operational risk management guides, industry safety standards, and case studies.
   • Financial Risks: Consider financial risks, including cash flow challenges and funding uncertainties. These can be found on Financial advisory services and economic analysis reports.

In summary

When researching a new business idea, start with a thorough market analysis. Identify your target audience, understanding their needs, preferences, and purchasing behaviors. This involves demographic studies and examining consumer trends. Next, conduct a competitive analysis to understand your potential rivals, their strengths, weaknesses, and market positioning. This will help in carving out a unique value proposition for your business.

Industry analysis is crucial. Delve into the industry’s current state, growth potential, and emerging trends. Pay attention to regulatory landscapes, as understanding legal and compliance requirements is vital for smooth operations. Evaluate any barriers to entry, like high startup costs or technological challenges.

Financial feasibility is another critical aspect. Estimate startup costs, project revenues, and conduct a break-even analysis. This will aid in understanding the financial viability of your idea and in planning funding strategies.

Gather customer insights through surveys, interviews, or focus groups. This direct feedback is invaluable for refining your product or service. Additionally, assess the operational requirements, including supply chain logistics, technology needs, and staffing.

Finally, consider potential risks – market volatility, operational challenges, and financial uncertainties. A comprehensive risk assessment will prepare you for unforeseen challenges. Throughout this process, stay adaptable and open to pivoting your idea based on the insights you gather.

The creation of the business plan can be split into a number of steps, the first being the classic situation analysis. So we need to look at a number of factors that will influence the construction and ultimately, the presentation of the plan.

First things are first

You will need to write down in very clear and distinct sentences, three very important starting points:

Business Idea and Goals: Clearly define your business idea. What product or service are you offering? What are your short-term and long-term goals? Understanding these core objectives will guide you through the rest of the planning process.

Business Model: Decide on a business model that works best for your idea. How will you make money? This could include sales, subscriptions, advertising, franchising, etc. This should be based on an understanding of the legal and regulatory requirements for this type of business.

Management Team and Personnel: Consider who will be involved in founding, managing and operating your business. What skills and experience do they bring? How will you structure your team and what part do they play in developing the business plan?

What type of business plan do you need?

Here I list a 10 different types of business plan, the first four are for the entrepreneur, whilst the others are for the intrapreneur.

1. Startup Business Plan: This is a comprehensive plan used by new businesses to lay out their business strategy, market analysis, financial plan, and operational structure. It’s often used to secure funding from investors or banks. This will be the one we focus on.
2. Lean Startup Plan: A more streamlined version of a business plan, often used by startups. It focuses on summarizing the key points of the business idea, including key partnerships, resources, customer segments, value propositions, and revenue streams.
3. One-Page Business Plan: As the name suggests, this is a concise, one-page overview of the business. It covers the core aspects of the business but in a very brief format, often used for pitching to investors or as a foundational overview.
4. Franchise Business Plan: Used by individuals who want to buy into a franchise, this plan focuses on how the franchisee will operate the franchised business, including marketing, staffing, and financial projections.
5. Internal Business Plan: Used within an organization, this plan focuses on a specific project or department. It’s less formal and may not include detailed financial projections. It’s used for strategic planning and operational guidance, normally developed by the intrapreneur.
6. Feasibility Business Plan: Before launching a new product, service, or business, a feasibility plan is used to evaluate the viability of the idea. It assesses market demand, competition, and economic viability.
7. Strategic Business Plan: This plan outlines the long-term vision and direction of an established company. It includes high-level objectives, mission statement, company values, SWOT analysis (Strengths, Weaknesses, Opportunities, Threats), and long-term goals.
8. Growth or Expansion Business Plan: For businesses looking to expand, this plan outlines the strategy for growth. It includes market research, expansion strategies, new product development, and financial projections.
9. Operations Business Plan: This plan is focused on the internal operations of a business. It details the logistics, technology, and processes that the business will use to operate efficiently.
10. Contingency Business Plan: This plan is developed to prepare for unforeseen events or crises. It outlines strategies for handling emergencies, disruptions, or unexpected market changes.

So once we know what type of business plan we are aiming to write, we must then start to look at the resources available for this venture.

Evaluating your Available Resources

Here, I broadly like to start with the five main types of resources: natural resources, human resources, financial resources, physical resources, and informational resources. This tends to get us off to a good start.

1. Human Resources:
   • Management Team: Detail the key members of your management team, their roles, experiences, and skills.
   • Staffing Plan: Outline your plans for hiring, including the number of employees, their roles, and the timeline for recruitment.
   • Training and Development: Describe any training programs or professional development opportunities for your staff.
2. Financial Resources:
   • Startup Capital: Estimate the initial capital required to start the business, including costs for equipment, inventory, and initial operating expenses.
   • Funding Sources: Identify potential sources of funding, such as loans, investor capital, grants, or personal savings.
   • Financial Projections: Include detailed financial forecasts, such as income statements, cash flow statements, and balance sheets.
3. Physical Resources:
   • Location and Facilities: Describe the physical location of your business, including office space, manufacturing facilities, or retail space.
   • Equipment and Technology: List the necessary equipment, machinery, and technology required for your operations.
   • Inventory: If applicable, detail the types of inventory you will hold, suppliers, and inventory management systems.
4. Intellectual Resources:
   • Patents and Trademarks: List any intellectual property that the business owns or needs, such as patents, trademarks, copyrights, or trade secrets.
   • Research and Development: Outline any ongoing or planned R&D activities to improve products or services.
5. Partnerships and Collaborations:
   • Strategic Partnerships: Identify potential or existing partnerships that are crucial to the business.
   • Collaborations: Mention any collaborations with other businesses, institutions, or organizations.

So now we should have a team who can help you create the right type of business plan you need for your startup, now we need to conduct some research, which is done in the next blog.