2. WHAT IS THE BUSINESS PLAN
A business plan is a formal statement of a set of business goals, the reasons
they are believed attainable, and the plan for reaching those goals.
It may also contain background information about the organization or team
attempting to reach those goals.
A business plan also is a document that is designed to serve as an overview of
how a company will operate and grow its business. A typical business contains
and executive summary, product or services description, the makeup of the
company’s management team, market and competition breakdown, marketing
and sales strategy and financial planning and forecasting
3. Why Do You Need a Business Plan?
A business plan is a necessary tool for all businesses. Just as a home is
not built without blueprints or a movie made without a script, you don’t
start a business without a sound and workable blueprint. You now take the
information you have gathered and put those ideas formally onto paper.
EXAMPLE OF BESINESS PLAN BELOW NEXTSLIDE
4.
5. STRATEGIES FOR BUSINESS PLAN
The current competition, their size, and market share
• Future competition
• The strengths and weaknesses of the competition
• How you can overcome their strengths and capitalize on their
weaknesses
• Your strengths and weaknesses (use the SWOT analysis in Chapter 4)
• Your edge over the competition and your cost to stay competitive
6. Marketing and sales strategies:
Part of your business plan will be a marketing
plan, which details how you will find potential customers. A sound
marketing plan includes a mix of methods, including using various media,
promotional methods and one-on-one techniques. Address these topics:
• Promotional and media methods you will use
• Special services or policies
• The target market these methods will reach
• The effectiveness of each method
7. 4.REASONS FOR CREATING BUSINESS PLAN
1.To avoid big mistakes: The last thing you want to do is work on your start-up for a
year, only to realize you were doomed to fail from the start. Many founders learn the
hard way that they didn't set aside enough capital to reach their goals, took on partners
with the wrong skills and resources, or don't have a viable way to make money.
Developing and sharing a business plan can help ensure that you're sprinting down the
right path.
2.To make sure everyone's on the same page: Chances are, you are not building a
company by yourself. Ideally, you'll have partners, so you can launch faster, smarter,
and with less need to pay employees or suppliers. Even if you don't have partners,
you'll have family, friends, and advisers involved. A business plan helps get everyone
involved in your start-up heading in the same direction.
8. 3.To develop a game plan: At a start-up, execution is everything. That means
you have to set priorities, establish goals, and measure performance. You also
need to identify the key questions to answer, like "What features do customers
really want?," "Will customers buy our product and how much will they pay?,"
and "How can we attract customers in a way that's cost effective and scalable?"
These are all things you'll address during the business planning process.
4.To raise capital. If you raise or borrow money—even from friends and
family—you'll need to communicate your vision in a clear, compelling way. A
good business plan will help you do just that. An October 2007 study by Babson
College found that start-ups with a business plan raised twice as much capital as
those without a business plan within the first 12 months.
