Developing an Effective Business Plan

A company plan is a file that indicates what one intends doing, how so when. This document outlines in great details, how a particular business activity is to be completed. That gives a perfect picture of the things needed for the task, the skills to be employed, the time span to be covered, the administrative centre needed for the productions and even how to market the finished product. In simple fact, it provides the total prospect of a business activity. axiom about me page

A business plan has several purposes. It is a guide in managing the direction of an enterprise. The business plan dictates the activities of a business. It is the boss who the actual decisions as to how to accomplish, how much to spend, the section of the large market to focus on etc. It sole handedly guides the affairs of your business. 

Moreover, it helps in monitoring and evaluating the progress of the business. It takes on a supervisory role for any business venture. This meticulously and regularly displays the progress of a business while evaluating it to see if the set goals and aims of the business are being achieved. When a business is declining or advancing in conditions of productivity or sales it is the business plan that points it away.

In addition, it is a collateral or security to seek a loan or financial assistance. This acts as securities when seeking for a loan at a financial establishment. It is an assurance for assistance from corporate and business bodies and banks.

A number of factors must be considered when preparing a business plan. Some of these have been outlined below.

I. Executive summary- This kind of refers to the account of the members of the executive body of the company. It is not a detailed bank account of each of them but an overview.

ii. Brand and address of business or enterprise- The business plan must retain the full name of the business as well as the residential and postal address of the enterprise.

3. Identification of a need to satisfy- The business should identify a special need that should be satisfied. This should be explicitly indicated in the business plan.

iv. Build what you want to achieve or do- The set out goals and objectives of the organization should be enshrined in the drawn business plan.

v. Find out or research from past way to similar problems- Solutions or remedies to past problems encountered by the organization should be written in the commercial plan. The measures used by the enterprise should be noted in the business plan.

vi. Assess the industry or market where you can operate e. g. potential customers, competitors, etc. – A good strategy should include analysis of the point group, likely buyers of the product and potential opponents of the same product especially those in the same business location. This kind of would help the venture to ascertain best strategies in winning customers and competing effectively with competition.

vii. Select the best solution -The best solution that can proficiently address the situation(s) in vi. above is selected and written down.

viii. Describe the enterprise or business (product, services, background of the entrepreneur) – The full description of the business as well as its activities should be vividly given. This includes the merchandise and services proposed by the enterprise as well as being an essential information about the entrepreneur who may be manning the enterprise.

ix. Describe development activity e. g. developing and production process, machines, sources of raw materials, location of enterprise and so on. – The entire creation processes by which the last product or service gets to the consumer are fully explained. This can include the source of raw materials for the production, the actual creation and the machinery or tools that assists in the manufacture of the items and/or services.

x. Advertising activities e. g. customers, pricing, distribution, promotion, advertising, etc. – The advertising pricing strategies adopted to be employed by the organization should be explained in the commercial plan. The various grille for distribution, promotions and kinds of advertisement decided by the enterprise must be plainly spelt out in the business plan.

xi. Organization e. g. history of managers and the duties, etc. – The organizational structure or plan of the business thus, the chain of top executives or managers and their assigned duties should be discussed in the business plan.

xii. Economic plan e. g. capital requirement, potential profits, cashflow and sources of funds- A fantastic business plan should have a clear financial plan with details about the business capital, expected revenue, the day-to-day flow of money and the options of funds for the business. This must be explained in guaranteed uncomplicated language.

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