Do you already have a business idea or concept but are confused to turn it into a business of your dreams? Have you ever contemplated what business you are going to build even if funds are limited? Or you have a low budget to create a new business and don’t know to make it work? Do you fall into one of these categories? Well, here are the articles that you must read.
There are countless numbers of businesses that have failed to develop. Most of them think that with a large initial business capital will make the business grow and will achieve success. It is all wrong!
Henry J Turner, Executive Director of the Small Business Development Center at Howard University said, “Don’t start until you have a business plan. The reason a large number of small businesses do not last more than three years is the lack of financial planning “. Therefore, if you are willing to start a business that will be sustainable in the long run, have a good business plan and idea.
A business plan is a written document that provides a clear picture of your business. The benefits of the business idea are:
1. It helps to clarify your business ideas and determine your goals and objectives.
2. It provides a road map for running a business.
3. This serves as a template for progress evaluation.
4. It helps with getting a bank loan or financial support from investors.
A business plan usually contains the following sections:
1. Executive Summary
This part of the business plan highlights your product (and what makes it special) and features identifying market opportunities, funding needs and expected returns. If you are interested in financial support, then this section should be interesting.
Here, you need to provide background information about your business idea, how your product can stand out.
3. Market and Competitors
This is where you focus on your target customers and why they should patronize you and not other competitors in the market that make similar services or sell similar products.
4. Sales / Marketing
How do you intend to meet specific customer needs? What marketing strategy will you use? For example, distributing leaflets, posters, the internet through websites, blogs, social media and print and so on.
You must describe management skills in your team, emphasizing areas of strength and weakness. This also includes remuneration proposed by team members.
What facilities are needed in your business. For example, you promote your business through the internet, then you must have a computer or laptop and a reliable intrenet connection.
7. Financial Estimates
Here you have to make cash flow that will show how much money you expect to flow in and out of your bank account and when you expect your business to break even.
8. Financial Requirements
Here you must state how much business funding you will need. Sources of funds that you may need are bank loans, personal savings, or support from investors.
9. Risk Assessment
This is very important to help minimize problems in case something goes wrong. This also gives credibility to your business.
In this section, you may need relevant data regarding market research data and product literature.
In conclusion, although the task of developing a sound business plan may seem daunting, it is usually worth the effort as it makes your vision clear, helping you maintain focus on the main areas of your business.