BENEFIT OF BUSINESS PLAN AND HOW TO WRITE ONE

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.