Business planning covers all issues that relate to your startup or business. The business plan fully reflects the anticipated activities of the company in the short and long term. It can be modified slightly as new strategies and approaches emerge.
Eminent personalities in management and marketing believe that most people come up with dozens of ideas every day. However, not every idea grows into a successful business idea. For a business idea to become feasible, it is necessary to draw up a business plan correctly.
How to Create a Business Plan Yourself, and What Is Needed for This?
Before creating a business plan, it will not be superfluous to analyse the data and take into account the current market situation. To structure all the information received, you can use one of the preliminary analysis methods — SWOT. It is very suitable for small businesses.
What is the SWOT analysis, and how is it used in a business plan?
SWOT analysis is required to assess the internal and external resources of the company, drawing up an objective picture for the business plan and consists of the following components:
- Strengths — for example, this may include low production costs, high professionalism of employees, an innovative product component, attractive product packaging or a high level of company service, etc.
- Weaknesses — these include such factors as the lack of own retail space, low brand awareness among potential buyers, etc.
- Opportunities — business opportunities imply such factors as the introduction of new materials and technologies for the production of a company’s goods, obtaining additional funding for a project, etc.
- Threats — for business, these can be criteria such as the economic and political situation in a country or region, peculiarities of consumers’ mentality, the level of technology development in the territory of doing business, etc.
How to Develop a Business Plan: Step-by-step Instructions
Before filling out the sections in detail, collect as much additional information as possible on the topic of your future project. You may visit the Forextime blog. You need to analyse the industry, study ways to promote your products/services, understand which companies are your competitors in the market, and maybe gain additional finances when forex trading, especially online stock. Also, estimate the amount of tax deductions for your company and the resources of the future project. For instance, cash, intellectual, time, personnel, etc.
1. The introductory part of the project summary
Here, you have to make a positive impression on investors and give a general description of the business plan as a whole. Therefore, the following points should be considered in this section:
- the direction of the company;
- target sales markets and the company’s place in them;
- profitability and period of return on investment;
- personnel and responsible persons;
- planned quantitative and qualitative indicators as a result of work by periods.
2. Description of products and services
You need to decide and describe what services or goods you intend to sell. For this, studying your target audience and understanding the portrait of the final buyer will help. You can shoot a video about your products/services, or take a photo. Analyse the market for similar products or services in your target market and describe the pricing model. Try to answer the question, “Can you compete with the existing companies in your segment?” After such an analysis, you will have a clear idea for whom you are producing your products, as well as understand the characteristics of your product.
3. Market analysis and marketing strategy
To understand in what conditions your company will operate and which competitors can be distinguished in your environment in Nigeria, you have to define a marketing strategy as accurately as possible. The strategy includes an analysis of the market environment, competitors, and your strategy for promoting the product in the current environment to the end consumer. After all this, be sure to draw up an approximate sales plan by a quarter to understand how much revenue and net profit your business can potentially bring.
4. Production plan
This section can be skipped if your company is going to provide services or sell goods, that is, engage in trade. If your company plans to manufacture products, then you have to understand how much production capacity you need to implement production, in what sequence the equipment will be introduced and prepared for work. Evaluate the expected dynamics of increase in production over time and the logistics of the required raw materials. Create a flow chart to see a picture of your entire operation.
5. Organizational plan
In this section, it is necessary to reflect your actions on organizing the business, broken down into specific steps with the time frame for the implementation of each stage, the person in charge and the expected results. Also, pay attention to:
Financial plan or budgeting
In this part of the business plan, you draw up a detailed estimate and plan the company’s budget. Typically, a company has one-time and recurring costs. One-time costs include the purchase of equipment or premises, an advertising sign, etc. Recurrent costs include consumables, raw materials, rent, utility bills, wages, and the purchase of goods.
Expected results, risk assessment and development prospects
You can consider several options for the development of events concerning your business, assess the risks and development prospects. Based on estimated financial figures, analyse the business plan and try to evaluate your project.
If you were an investor, and you were offered to invest in such an enterprise based on this business plan, would you agree?