The focus of this article is to elaborate on the business plan and more specific how to draw up your business plan. But what is a business plan? Your business plan is your first step towards a successful business. it should therefore reflect your objectives for your business. The following suggestions for your business plan should be kept in mind: 1. Attractive appearance 2. Concise 3. Comprehensive 4. Logical 5. Simple and easy to read 6. Based on facts and evidence as far as possible Elements of a business plan (The cover sheet) Design a professional cover sheet and a page with the contents of your business plan. It is important that your business plan as a whole, including your cover sheet, reflects your serious attitude towards starting your own business. It should include: The name of your business, the entrepreneurs name, the relevant addresses and telephone numbers, logo or company emblem, informative contents page. Elements of a business plan (Summary) Provide a summary of exactly what your business intentions are. Highlight key aspects of your business plan. your summary should create a desire to continue reading and should explain the purpose of the financial request, the amount requested, how the funds will be used and how loans will be repaid. a well-developed summary introducing the financial proposal establishes a favourable first impression of the entrepreneur and the business. although the summary is the first part of the business plan, it should be the last section written. Elements of a business plan (Description of proposed business) The description should cover the following: 1. Any legal requirements like licensing, permits and tax regulations. 2. Unique features of your business and why you believe it will work. An objective SWOT analysis (strengths,weaknesses,opportunities,threats) of your business should be included. 3. The "end" you have in mind. 4. The type of business ownership you select (partnership, cc etc) 5. A general description of the intended service or product you intend manufacturing or providing. Elements of a business plan (Marketing plan) 1. A description of your target market. 2. What percentage of the target market you intend capturing. 3. Sales forecasts for the first year of business, 2nd year forecasts is a bonus but be realistic. 4. A description of key customers. 5. A description of your potential competitors, their marketing strategies and potential effects on your business. 6. A description of your marketing mix - promotion, pricing, place and products. Elements of a business plan (Management plan) 1. The form of ownership 2. An organisational structure 3. office administration plan, inventory of office equipment, insurance, legal requirements such as licensing, tax regulations and the workmens compensation act. 4. Operating plan 5. A description of your administration or record keeping system. 6. Names of suppliers you intend using 7. How many people you intend employing, type of training needed, wages. 8. Aspects of your remuneration policy such as working hours, leave, medical and trade unions Elements of a business plan (Financial plan) This section should receive a lot of your attention. many new business experience severe financial difficulties in the beginning and go under because of a lack of financial planning. Your detailed financial plan should include the following: 1. start-up costs 2. a calculation of your break-even point 3. a cash-flow statement to reflect your cash position on a monthly basis. 4. A detailed income statement for the first year high-lighting the income and expenditure you expect on a monthly basis. 5. External financing required and securities that you have. Elements of a business plan (Motivation and supportive material) 1. A summary of why you believe your business plan will succeed 2. A motivating factor for other people to have faith in your proposed venture 3. Credit reports 4. Letter of reference 5. Legal documents. 6. Copies of contracts and leases. Given the above one can conclude that compiling a business plan is not a quick and easy process. It requires a lot of research and planning. However, as i pointed out earlier, if you know where you are going, the probability of getting there is excellent. |
