Do Business Well

A business plan is simply a detailed explanation of your basic ideas, and it’s on the basis of this plan that you’ll be able to raise finance, and also clarify all aspects of your projected business before you spend too much valuable time and money on it.

The whole point of a business plan is to chart the course an entrepreneur intends taking in the coming year. The information dealt with in the Viability Study and that gathered to complete the business plan must form one uniform analysis.

Planning is essential for every business, whether it is a major company or an ice cream stall on the beach front. The whole point of a business plan is to set goals and work out the steps towards attaining them. It should at all times comply with the following:

• be of good appearance
• be comprehensive
• be logical
• be simple and easy to read
• be based on irrefutable facts or evidence as far as possible

Some of the steps that should be followed in drawing up a business plan:

1. You should determine the profit you require from the business. You should work out, for example, the volume of sales needed, the cost of making up these sales and other operating expenses in order to draw up a statement of anticipated income for the year.
2. You should undertake a survey of the market so that, for example, anticipated sales volume can be ascertained. It may be difficult for you, as a potential business person, to do detailed market research, but it is possible to gain information on the market by tapping official statistics, published surveys and personal enquiry.
3. A financial statement is required, as well as details of how much money you are putting into the business. This statement must be realistic and not underestimate what is required. Details should be supplied of how a loan from the bank might be used in the business.
4. You should prepare a merchandising plan which details sales promotion, advertising, pricing policy, etc. and include it in the overall business plan.
5. You should draw up as comprehensive a budget as possible, which is simply the translation into money terms of the business plan, and can cover any period, to reflect an analysis of estimated running costs.
6. You should establish an adequate bookkeeping system for both internal and external reporting.

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