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How to prepare an engineering business plan?

  • Highlights

  • Outline goals and chart a growth path

  • Create a financial plan and budget for your firm

  • Leveraging technology

  • Engineer Loan to buy equipment

The Indian government’s vision of Digital India and ‘Zero Net Imports by 2020’ is aimed at making India self-sufficient. Whether you are involved in product development or IT, associating your engineering business with this growth movement will help you propel it towards success. Do this effectively with a business plan.

Here are important elements to include in your engineering business plan.

1. Chart out the mission and USP of your firm

Whether you are involved in industrial forging or manufacturing power transmission devices, be clear about your mission. This will help you arrive at your USP, which gives you a chance to grow more efficiently and market your services better. Say your business provides IT solutions and security.

Your objective can be something as simple as providing affordable business solutions to your clients. This will help you craft the various qualities or values (such as agility, knowledge, and passion) you hold dear. Now, you can hire people who reflect these values. Finally, you can use these values and beliefs to stand out from competition, and increase your clientele.

2. Create a financial plan and forecasts for revenue

You are doing business to make profits. Having clarity of thought in terms of your financial goals will give you valuable perspective. Assign numbers to each qualitative goal you set for your firm. Set a scalable financial projection for the next 5 years alongside a smaller monthly and annual projection. The combination of a big and small goal will give you a reality check and help you progress with a purpose. Calculate your projected revenue, and think of strategies for filling in capital shortfalls. Review your financials every quarter to cut down on unnecessary expenses to keep your working capital strong.

Top Business Opportunities for Mechanical Engineers

3. Decide on technology and manpower support

Once you have decided what you mission is, you will know the competencies to look for in every hire you make. You may need technicians who know how to handle advanced machinery, data analysts who have programming language skills, or structural engineers who know how to use your chosen design software. Get people who reflect your passion to create a strong team. Secondly, outline the tech support you need, be it specialised equipment and tools, machines or software. Arrange for buying these assets at the earliest, since they ensure faster and better-quality output. Rather than depleting your working capital, you can use an Engineer Loan to fund these purchases.

4. Define the sales and marketing strategy

Map out the sales plan for your firm at the beginning of every financial year. This will motivate both you and your staff. To meet your annual sales goals, devise a good marketing strategy. Allocate a budget for that. If you want some additional fund to support this without depending too much on your cash flow, you can avail an Engineer Loan. Break down your activities down month wise, and assign manpower to execute your plans. Focus on your target audience and location to convert leads into sales.

Following these key elements will not only help you create a good business plan, but also achieve success.

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