justification plan

What is the justification plan and how is it prepared

What is the justification? It's a study to answer a very simple question: Is the idea possible (in relation to our business) feasible? While it may seem simple at first glance, finding the answer often involves spending considerable energy searching for different areas. Things like market competitors, financial options, technical and manufacturing considerations are many factors to consider justifying any startup. Next, we will tell you when it is appropriate to begin the process of preparing a justification plan. What are some things you need to mention in the final report of your findings? Who is the most appropriate person to perform this analysis? And how do the questionnaires help you find the answers to some of the most urgent justification questions.

Be sure to read: Understanding Entrepreneurship Types

A good time to consider justification

Regardless of the confidence you have in your new product or clever idea, always before spending a lot of time or money, the right thing to do is to justify it in the real world. All new businesses must prepare a justification plan before starting production or entering the market. In the most established companies, justification is formulated before the new product is produced. This set of reports can also provide the quantitative data needed to make difficult decisions about the future direction of a company or product. If you have internal disagreements about taking the next step in marketing, expanding or expanding your business, a justification can resolve disputes by providing impartial information.

When you do not need the findings of the justification plan

Entrepreneurs may enter the market before making a justification for saving money and time, and often for entering the market without time. This can be lucrative when your business first emerges in the emerging market, or it can have the opposite effect if the startup business is faced with unforeseen obstacles.

Some of the reasons you might want to bypass this type of scrolling are:

Founders or entrepreneurs based on similar personal experience or successful business models find that economic activity is justified;

You still validate the results of the latest surveys and think the changes haven't been large enough to warrant new research;

Financial and time costs hinder the full realization of the justification plan.

Key components of the justification plan

The justification plan may include a variety of topics that will affect your new business, but the topics you are considering often fall into one or more of the following:

What is the justification scheme - the components

technical

Do you have the specific technology that your startup depends on?

Economical

Consider present and future economic conditions that may affect your ability to market or desire to buy your products or services alongside any primary source of cash flow.

Legal

This is for reviewing the legal rights, copyrights, or other monopolies that may affect your idea.

Operational

Need a storefront to showcase your product? Staff? Company Letterhead? Note the cost of all the business operations of your business.

Schedule

If you are going to produce your product for a specific season or prior to an event, you must include this time limit in your work plan.

Available in the market, this category includes many of the following:

Competitors 2

Level of demand;

Unoccupied market niches;

Target markets, including specific demographic information and shopping habits;

In-person marketing versus online marketing.

Be sure to read: What is the most important habit of a successful entrepreneur?

Where to get justification information

Undoubtedly the fastest way to get a consulting plan is to hire a consultant to do the job for you from start to finish and tell you the findings. While this idea is tempting, it may not be feasible for most startups for financial reasons.

You need to consider the cost of preparing the justification in the economic component we mentioned earlier. This may push businesses that are starting to get the least profit in the red (lack of justification for the plan).

On the other hand, if you run your business without the information you need, you risk losing the initial capital. In addition, many investors will refuse to accept your offer without having information, so it may not be appropriate to bargain on the cost of justifying the plan.

Fortunately, with extensive access to past data from market studies and easy-to-use questionnaires, you can do a lot of data gathering yourself and reduce the overall cost of justification, while still spending less on information. Very useful justification plan you will have access to.

Use the questionnaire to find out the marketability

You need to get to your target market to learn as much about the people you hope to pay for your product or service; and questionnaires are without a doubt the best tool to do so.

Questionnaires are a very accurate and valid tool for finding past and future shopping habits, brand awareness, and feature preferences. If possible