BENEFIT OF BUSINESS PLAN AND HOW TO WRITE ONE
When you think about a business plan,
your mind might probably go to the process to take before launching a business
as whether you are new in the world of entrepreneurship or a seasoned veteran,
as a properly crafted idea, blueprint, strategy, resource can help solidify
your vision on requirement for a new venture.
Business plan according to department
of trade and economic development are process to take to avoid risks, avoid
sales crises and control business environment. Before you intend to write your
business plan, the first step to take is identifying how, where and whom you
intend to sell a product or provide a service. You also need to assess your
competitive environment and understand how much money you need to start your
business and keep it running until it is established. The details below would
describe comprehensively on how to write a business plan and also means to go
about on how to determine If and how a business can succeed.
FEASIBILITY STUDIES: it comprise
comprehensive, detailed information about ones business, the products and
services, the market, logistics of how one will actually deliver a product or
service, the resources one needs to make the business run effectively, as well
as other information about the business. The importance of feasibility is that
it serves as the standard or yardstick for assessing performance of envisaged
business. It also help to list all detailed things you need to make the
business work, identify logistical and other business related problems and
solution and provide important information necessary for accurate decision
making in relation to the proposed project.
INTENDED MARKET ENVIRONMENT: Define
and describe the target market, who is the key players, frequency of product
purchase and process of purchase. also, distinguish between end users and
customers.
PRODUCT/SERVICE: know the type of
product or service you are going into.
TECHNOLOGY: As necessary, provide
technical information about the product or service. And ensure to have a
technical means of getting in touch with your customers and also means on how
to market your product/service.
BUSINESS MODEL: Describe the proposed
enterprise’s business model, how the business would generate revenue (i.e sell
the product; charge licensing, retail sales)
SALES STRATEGY/MARKETING: lay out the
basic marketing and sales strategies. Describe the pricing strategy and
justification.
COMPETITION: list all key barriers and
direct or indirect competition to the service/prpoduct you want to provide.
REGULATIONS: Outline non-economic
forces that might affect the prospects of the products/service; plans to
address the problems, cost and political stability if applicable.
INDUSTRY: Clearly define and describe
the industry in which the enterprise operates. Include the size , growth rate
and outlook. Capital needed and cost of
maintenance: starting capital needed, fixed assests needed, working capital
needed and projected loss and profit account.
With the descriptions above , you should be able to know the type of
business you are planning and how efficient the listed details can be put into
good use and to also know who your potential customers are, how you will
attract and hold your share of the intended product/services.
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