Do Business Well

Developing a comprehensive business plan is by no means an easy task and may demand a lot of time and patience. It requires a conscious effort, a lot of homework and a well-designed layout.

Here are a few worthy guide-lines, as set by the Small Business Development Corporation.

Step One: Prepare a professional-looking front page

Ensure that the front page is businesslike, neat and eye-catching. It should preferably contain the following information:

• The name of the business
• The type of business
• The name(s) of the owner(s)
• The address(es) and telephone number(s) of the owner(s) of the business
• The date presented

Step Two: Start off with an interesting introduction

Your introduction should be concise, stimulate the interest in your proposition and contain the following information:

• A description of the service or product you intend selling
• Why you believe your venture is viable
• Your short-, medium- and long-term objectives

Step Three: Provide a comprehensive description of your business venture

It should contain the following information:

The type of business ownership you’ve selected and why

The historical background of the business, if any

• Any legal requirements like licensing, permits and tax regulations
• A comprehensive outline of your product(s) or service(s)
• A comprehensive outline of your educational qualifications, work experience and training courses attended
• A outline of technical details and capabilities
• A description of your location, features, floor layout and proximity to competitors (if this applies)
• A comprehensive and objective SWOT analysis of your home business, that is a detailed outline of all your Strengths, Weaknesses, Opportunities and Threats
• A description of your competitors and their products or services

Step Four: Comprehensively outline your marketing plan and strategy

You have described exactly what you intend doing in step three, and your marketing plan and strategy should now explain how it will be done. It should contain the following information:

A description and substantiation of your potential target market or

What percentage (or rand value) of the market share you intend capturing in the short-, medium- and long-term and why

A description of your competitors’ marketing strategy and the potential effect on your business

A description of your purchasing, costing, selling and sales promotion strategy (if this applies)

Step Five: Comprehensively outline your financial plan

Business is essentially about financing and the most brilliant marketing plan will never allow a small business to break even if financially it is unable to do so. So spend a great deal of time working out a detailed financial plan. Be realistic, and remember, as small business takes time to become established, do not be over-optimistic in your projections. Also, do a bit of scenario planning, that is, ask yourself what if

• the turnover drops by 5 per cent
• the expenses increase by 10 per cent
• the gross profit drops by 3 per cent

The turnover drops by 10 per cent and expenses increase by 6 per cent, etc. Your financial plan should contain the following information:

A detailed income statement for a projected period of 12 months (needed for a loan application)

• An indication of your break-even point (needed for a loan application)
• A detailed cash flow for a projected period of 12 months (needed for a loan application)
• Scenarios showing precisely what would happen if business was good, average or poor

Your own financial contribution

• The financing you require and for what you intend using it
• Security available

Step Six: Outline your business’s structure and operating plan

The following should be included in your plan:

• A description of how many staff you intend employing (if at all) and why, where and how you intend employing them
• A description of your management and staff; their qualifications and experience and what their job descriptions and remuneration packages will be (enclose an organizational chart)
• A description of your staff policy regarding working hours, fringe benefits overtime, sick leave, medical aid, unions, etc.
• A description of your administration or record keeping

Consult experts if necessary

• A lawyer can help you settle on the best legal form of business to suit your situation and draw up the necessary forms.
• An accountant can show an effective way to keep your books and advise you on your tax obligations. (A simple record-keeping system should suffice for most small home businesses.)
• A banker could give you advice on your financial planning.
• An insurance broker will explain the types of coverage you need and will make sure you are well protected.

Possibly related posts: (automatically generated)
What are major components of a good business plan for Working from Home

• Previewing the Business Plan: The Best Type for You
• Making a Plan: how to construct a simple and workable business plan part 6
• How Your Business Situation Helps Shape Your Plan
• Packaging Issues
• What All Plans Must Cover
• Targeting Your Plan continue...
• Fine Architecture Revealed
• Ask Yourself: Would You Invest?
• Personally Presenting the Plan
• Are you struggle at the startup, do you know importance of a business plan?
• The Management Team

5 Comments »