WHAT IS A BUSINESS
PLAN?
A business plan is a document drawn to outline a business
idea. I draw a realistic picture of what a prospective entrepreneur has in
mind.
WHAT IS THE PURPOSE
OF A BUSINESS PLAN?
-A business plan highlights the nature and context of a
business opportunity.
- It explains the entrepreneur’s approach towards
exploiting a business opportunity.
- It is the tool which an entrepreneur will use to raise
capital.
- It also creates a scenario where factors (both negative
and positive) that could affect the success of the business venture are
identified.
- A business plan the most important tool used in the
raising of business capital.
- It is used to pursue strategic partners
-It provides a center of focus and discipline.
-Once the business kicks off, the business plan serves as
a template on which the business is build.
The business plan is the soul of the business. How you
draw a business plan and how you present it will go a long way to determine the
success of your business.
A business plan should be able to summarize;
-the business opportunity
-Resources
-The entrepreneurial team
-The financing structure
-Internal and external factors affecting the business
ELEMENTS OF A
BUSINESS PLAN
Depending on what kind of business you wish to venture
into, you may use or discard some of these elements.
§
EXECUTIVE SUMMARY
-Company name/Management team:
company’s objectives, company’s strategies, what makes your business
different from others/ Founders
-Target
market: Who are those in most need of your service/product?
-Industry overview: How marketable is your product? How will it compete
with others?
-Products/service and marketing
strategy: What product or service are you selling? How is it applied? Why will
customers need your service/ product? What are the future innovations this
product will undergo to get better over time? How will the product or service
evolve? What advantage does your product or service have over others? What is
your marketing strategy for this product? What sales and distribution channels
will you use? How will you communicate and advertise your product?
-financial requirements: How
much capital will you need? How do you intend to raise the capital?
§
BUSINESS MODEL
-HOW WILL YOUR BUSINESS MAKE
MONEY?
How are you going to transform
you business idea into monetary value?
Who will pay? How much will they
pay? How often will they pay?
Are there any licenses required?
How much will you be taxed for that business?
What resources are needed and
how are you going to acquire it? How will you recruit staff and what will it
cost?
-
Include manufacturing processes,
- Services and facilities.
- Clearly state how the capital will be used and
how turn over will be made
In Summary;
-You are stating why you wish to do this business; that’s
your mission and objective
-Who will help you operate the business? ; That’s your
organizational plan
-What product/service are you selling?
-How would you produce, distribute, promote and sell your
product or service?
-How much money do you need? How will you get it and how
will you spend it?
The business plan will vary depending on the type of
business and the size. Most people are comfortable starting businesses off
plans in their minds. However, successful and exceptional businesses are born
out of great planning and implementation. A business plan creates focus and disciple.
It also provides and outline which can be used to compare with competitors and
build strategies to top them. Take you business idea to the next level. Create
a business plan…Once the plan is ready, you can then think of implementing it
if you have the capital or presenting it to potential investors. In subsequent
articles, you will be guided through putting up a good business presentation and
also introduced to NGO’S and organization ready to issue grants to potential
African Entrepreneurs. Courage as you take the step towards realizing you
dreams…Do ask questions and share with us.
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