How To Start Any Business Part II – Creating A Business Plan.

How To Start Any Business Part II – Creating A Business Plan.

Hi am back with an ultimate guide on how to start any business of your choice, I want to believe you enjoyed the first part? If you did, the much anticipated part two is here. In case you missed the first part you can read up here: http://kudizone.com/2015/06/19/how-to-start-any-business-part-i/

In this second part and the subsequent ones I will give a detailed analysis so you can all understand. In this episode I will be analyzing the part of having a business plan.

Create a business plan

A business plan will help you define what your business is exactly and will help you itemize all you need to launch your business, large or small. It summarizes the entirety of your business idea in a single document. It also creates a map for investors, bankers, and other interested parties to use when determining how they can best help you and to help them decide whether or not your business is viable for them to invest in. There are good books available on writing business plans that cover many chapters, and you should avail yourself of at least one of these as a guide (bookshops, libraries and online are good places to find these). However I will try and give a quick list of some basic things you should consider when putting this information together:

  1. Come up with an executive summary: An executive summary is a short document produced for business purposes, it summarizes the entire business in a way that readers can rapidly become acquainted with it in a very short time. It usually contains a brief statement of the problem, background information, concise analysis and main conclusions. There will need to be several basic parts in your business plan. The first is the executive summary. In a nutshell your executive summary should be able to describe the overall business concept and anything else that makes your business look like a winning proposition. It should be short, precise, formal and easy to understand.
  2. Write your business description. Describe your business more specifically, and how it fits into the market in general. Who are your target audience? And how will you deliver to them? What is the mode of your business? Is it a corporation, Limited Liability Company, or sole proprietorship, state that, and why you chose to go that route. Describe your product, its big features, and why people will want it.
  3. Come up with marketing strategies. You must know your market if you are to be successful, so spend a great deal of time analyzing just who it is that will want your product, and how you plan on appealing to them to take cash out of their bank account and give it to you. What is the size of your market, will there be opportunities to expand the initial market, and what are your sales potentials? When you understand these variables, you want to sell them to the person reading your business plan.
  4. Do a competitive analysis. As you are developing a marketing plan, you must also put into mind your competitors, learn who these key competitors are, find out how they have been able to succeed in that business, find out also some of their past failure and probably a current one, if they had shut down what lead to it, if they are still in existence why and what does the future look like.
  5. Write your development plan: This entails the details of how you are going to create your product, is it just a service that you are offering, or it’s more complex—software, a physical product like a toy or a toaster—whatever it is, how will it get built? Define the process, from sourcing raw materials to assembling to completion, packaging, warehousing, and shipping and delivering it to your final consumer. Will you need additional people? Will there be unions involved? All of these things must be taken into account.
  6. Plan your operations. Who will lead, and who will follow? Define your organization, from the receptionist up to the CEO, and what role each plays in both function and financials. Knowing your organizational structure will better help you plan your operating costs, and fine-tune how much capital you will need to function effectively. Keep in mind that your business will continue to evolve and that this will be a rough idea of who is needed to keep things functioning; as the business grows, you’ll likely make changes to the hiring plans to fit what is happening at the time.
  7. Cover the financials. Succinctly, this describes how much you plan on spending, and how much you will be making in return for every penny spent. Since this is the most dynamic part of your plan, and perhaps the most important for long-term stability, you should update this monthly for the first year, quarterly for the second year, and then annually after that.

If you follow the above steps properly, you are a step away from starting a well-organized and sure to succeed business.

In the subsequent post we will be discussing legal issues, so as to make sure your business is secured legally against any threat of damage.

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Author

Joshua Olajide

Joshua Olajide

Olajide Joshua Oluwadamilare is a multimedia and ICT expert with many years of experience at various levels, passionate about development; skills acquisition and training. Always learning to unlearn and relearn. Joshua Oluwadamilare is an experienced Web Developer, Content Manager, Social Media and Multimedia expert. A writer/Blogger for as long as i have started schooling a good team leader and manager with a good interpersonal relationship skills. A certified project manager, a seasoned trainer with several years of practical experience. Currently the dean of TWIM Academy; a government approved, international award winning school of media and creative arts.

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