Business plan

Many people nowadays have money but don’t know how to manage it or what to do with it. Others try and start up businesses and before you realize it will scratch back to zero. I will be writing today about business plan which is my first post on my blog.

What is a business plan?

A business plan can be defined as a document describing it products or services , how it earns or will earn money, it leadership and staffing it financing, it operation model and other details essential for its success.

A business plan is a road map for lunching and growing a business. A business plan answer the following questions. 1 who are you ( legal structure, ownership and location). 2 what do you sell? 3 who do you sell to(customers)? 4 How do you sell( distribution channel and marketing plan)? 5 Who is the competitor? 6 What is the road map ( time table)? 7 How is it made ( Manufacturing process, supplies)? 8 What are the finding requirements ( amount, source of financing)? 9 What is the expected return on investment ( capital flow forcast )?.

Reasons for a business plan.

1) In order to secure funding: every business needs funding either from the bank or other source . 2) In order to have a purposeful direction. A business plan will help you as a guide line for references on how the business will be carryout from the beginning to the end without any scratch. 3) To market your brand . A business need a solid customer base to grow and in most cases you need to have a busy plan before you can get a solid audience. 4) To avoid Failure. A business plan is imperitive. It’s seriously needed before the business start so that failure along the line shouldn’t be.

Guidelines in writing a business plan

1) know your audience. 2) Have a clear goal. 3) Invest enough time for research. 4) Keep it short and straight to the point. 5) Use good language with soft tune of words.

STEPS IN WRITTING A BUSINESS PLAN 1) executive summary. It is the most crutial section of your plan. An executive summary provide an overview of the main point of a large report. It is often written to share with individual who may not have time to read the entire report. It enable the reader to make decisions based on the reading of executive summary. It must carry the following: business concept, business goal and vision, prody description and differentiation, target market, current financial state, marketing plan.

2) Company overview: it’s also known as company formation or company summary. It is the essential part of the business which review the important point about the company management team, location, mission statement and legal structure. This section answers two fundamental question; whoa are you and what do you plan to do. Answering this question provide an introduction to why you’re in business. 3) Market plan . 4) product and services. 5) customers segmentation. 6) Marketing plan. 7) Logistics and operational plans. 8) Financial plan. Thanks for reading my next post will be on SWOT ANALYSIS.