Should you prepare a Business Plan?

Should you prepare a Business Plan?

Yes. You have to have a realistic view of your business. Don’t loose your enthusiasm, but don’t be overly influenced by it. You should prepare your business plan yourself guided by expertise where necessary. Make sure that you are open to altering your idea to satisfy the market needs. Your business plan needs to consider the following:

• Target Market
  Who are you going to sell to? Define your customer. How big is your market? What are the trends – growth or decline? How do customers behave? Do you have to change your idea to cater for market trends?
  
  
• The Product or Service
  Define exactly the product or service you intend to sell. Make sure that what you are selling is right for the market.
  
  
• Competition
  Who are your main competitors? What are they selling? How are they performing – what are their strengths and weaknesses. Why are they successful – or why are they failing? What are their future plans? Why would customers buy from you rather than your competition?
  
  
• Management
  What processes are needed? How many staff do you need? Think of efficient and effective delivery of a quality product or service. It is important to keep the customer happy while keeping the business efficient and profitable.
  
  
• Sales & Distribution
  What is the best method of delivery of the product or service to the customer?
  
  
• Promotion & Advertising
  How are you going to get a clear message about your business to the target market? A promotional campaign must be targeted and effective. Direct sales? Advertising? Publicity? Mailshots? What will work for your product or service?
  
  
• Financial Projections
  When starting a business you should think of your start-up costs and the running costs of your business. Starting a business you need to consider the costs of your building, equipment, vehicle, launch marketing, set-up costs such as legal fees, financial fees, installations, logo design etc. You should then prepare a cash-flow projection that sets out the income and expenditure you expect to make per month over the first 3 years of business. Be realistic and ask yourself if you can make a proper living from the projections.