How to Set-Up an Enterprise - Preparation of Business Plan
Introduction
A Business Plan is an document
where you plan your Business to have an organized and
effective response to a situation which may arise in future.
Business plan is not just for a start up company but also
for those which are growing. It can be used it to establish
realistic goals or targets to achieve and to determine
the current position. A workable business plan
Determine where the company needs
to go
Forewarn of possible roadblocks
along the way
Formulate responses to contingencies
Keep the business on track to
reach its planned goals
Start a business plan with describing
your business and product or services. Tell about the
market you are targeting and the stage of development
your company is in. If you get stuck up on a particular
part of the plan-leave it for time being-and come back
later and finish it . You can't make a perfect first
draft- so just get some thoughts down to start the process
and you can always come back and change it or polish
it up later. While making a business plan keep
following points in mind.
Keep
Target Audience In Your Mind
While writing your business plan keep
in mind the intended audience and why you are writing
the plan. For example, if you are trying to get debt
financing emphasis should not be on the huge profit
potential - but on the certainty that the debt can be
repaid. If you are writing a plan to help you run the
business better you may start with general background
information on the company and the industry, and focus
on the areas of your plan that are currently most important
to you.
Basically the first part of the business
plan should be geared towards helping develop and support
solid business strategy. The plan should explain the
market, the industry, target customers and competitors.
Write about customer needs and the benefits of current
products and services. Evaluate the strengths and weaknesses
of each competing firm and draw out the opportunities
for your product or service in the marketplace. All
of these steps largely aims to help you in creating
a strategy for your business. The second half of the
business plan should explain how to execute your selected
business strategy. Your products and services, your
marketing and operations should all closely tie in with
your strategy. Have a strategy that will set the course
for your business rather than having a smart-sounding
strategy for your plan,
Think Competitively Throughout Your
Business Plan
In present competitive market, you
would probably be facing some serious competition sooner
or later no matter how unique your business idea is.
You need to think competitively throughout your business
plan. As an entrepreneur, you need to identify where
you will do things in similar manner as your competitors,
where you will do things differently, what will be your
real strengths and real weaknesses, where will you create
your niche. Focus your plan on being different than
your competitors and compete with existing players
less directly. Find a particular market niche to focus
on. Think over the points, can you find a unique strategy?
Can you position your products differently? Can you
use different sales or marketing vehicles? Your
business plan should be able to answer these questions.
Be Realistic With Your Business Plan
Lots of business plans sound good
on paper, but don't work in the real world marketplace.
It's difficult to attract people to a new product or
service, just because it's better. People or companies
have established buying patterns and are currently doing
business with someone else. To do business with you,
it takes more than attracting them to your business.
You've got to steal your customers from someone else's
business and create your own base of loyal customers.
It is possible that your competitors may launch new
products or services or cut their prices to counter
your entry in the current market. For a new start up
company it's easy to overestimate sales projections
as it's easy to underestimate costs. There are always
going to be some unseen expenditure, hefty amount of
cost overruns, expensive problems, and items that you
simply overlooked. So forecast conservatively and try
to have an extra cushion of cash tucked in reserve.
In seeking fund from banks, venture capitalists or other
outside investors, you will increase your chances of
success if you get someone committed to your management
team who at least have a recognizable name.
Alternately, you can include as exhibits
to your plan any positive media clippings you can find,
such as items from trade publications, about members
of your management team. If you don't have any clippings,
try contacting relevant publications to get media coverage-perhaps
about your start-up business proposal.
Keep Your Business Plan Factual And
Succinct
Try to keep the plan factual, don't use hyperbole or
generalizations to describe the potential of your business
plan. Use more factual information you present to reach
their own conclusions. Keep it succinct. Don't put too
much detail when creating plans. If a business plan
is too long, it might be skimmed and focus on what is
really important might be lost.
Involve Everyone
Involve use expert opinion or key employees to create
business plan. Then work with them until you are satisfied.
Have key people get together to get the plan in synchronised
fashion and to get any disagreements out in the open.
The more input people have in creating the plan, the
more responsibility they will feel toward it.
