You will have to go through a lot before you can start up a business. The registration and research you undertake can take quite a lot of you. If you fail to plan your business, the chance of success is very low.
You need to prepare a business plan before you kick off the business. The business plan should give a general idea about your present position in that business; it should give an idea of where you want the business to be in the future of the business and also show how you plan to get to the desired haven.Your present financial position should also be indicated in the business plan, as well as how you plan to improve your financial situation. If you plan to get a loan to finance your business, you need to present your business plan to the creditor, like investors or banks. The business plan will show them that your business is worth investing in. The business plan will also show how much you need to start that business; it will also show how soon you can pay back your investors.
A well-detailed business plan will give the investor confidence to invest in your business. Make sure the business plan is realistic, complete and clear; this will give assurance that you can easily raise fund for the business. If the business plan is poorly prepared, it can negatively impact your ability to raise fund via investors or banks. You can use the business plan as a detailed roadmap for the business. It can also provide direction and guidance to you and your members of staff. Measuring your business progress can be difficult without a business plan
Many of the business owners around find it difficult to put a good business plan together because they have little understanding of how to write one or they are just too busy to dedicate time to it. As a result, they do not have a roadmap for their business, which a business plan represents; strategic planning for such a business will also be difficult due to the absence of a business plan. You will be making a unique investment by writing a business plan. The business plan gives the business a clear vision. You can outline your vision for the business as series of objectives in the business plan. Your business plan should be the moving force and compass for your business.
The five components of a business plan
- Business Description
It represents an overview of your business activities, and it must be written in an easy to understand manner so that a complete newbie in your line of business will understand the content. In this aspect, you can describe what your ideal customer is and also outline the various products and services you deal with.
In this section, you should give an insight about why your competitors are leading in your niche. You should state the factors that place the competitors in their leading positions and tell what your plans are about turning the game against your competitors. Your plans to win more shares in the market must be realistic. You should also state what your expectations are in worst and best case scenarios.
You should state what marketing tools, techniques, and strategies you plan to adopt. Your key points of difference must be stated here; you should equally state what is unique about your website and what marketing collateral you would create. Never also forget to state the techniques you plan to adopt for search engine optimization.
People, tools, and strategy are the three main variables that can determine your business success. The businesses may fail if you do not have proactive personnel in your company. The resume of all your main personnel should be included in the business plan to win the interest of investors. You should equally describe your management team. Personnel in each of the employment categories should also be listed in the business plan.
- Financial Data
Your present financial situation should be stated in the business plan. You should equally include your source of salary and other sources of income. State what your startup cost will be, as well as the results expected after the first year of trading without leaving behind your cash flow budget. The financial information will indicate where you are going financially.