BUsiness plan

Writing a business plan will help bed down your idea and give you a roadmap for executing it. The business plan does not have to be a complicated document. Keep it simple and to the point. Writing it down is an important step as it will be a reference point you can return to often. You will especially need a written business plan if you require funding from another party or lender. 

Contents of a Business Plan:

A business plan describes your product or service, identifies who the customer is, explains why they need your product or service, and shows how you’ll make money from that opportunity.  

1. Executive summary: A short summary of the main points of your business plan. 
2. Company overview:  The company summary in a business plan provides an overview containing a description of your company at a high level. A company summary might include your mission statement, goals, target market, industry your business will play in, products and/or services, as well as how it stands out from competitors (i.e. the business' competitive advantage). 
3. Products or services: Include a description of the problem you’re solving for customers, a detailed description of your products and services, and how these will solve the stated problem. This Problem-Solution approach to describing your business will be key when pitching the business to prospective investors, funders, and other related stakeholders.
4. Market analysis:  A market analysis provides insights into potential customers and your competition. The core components of the market analysis are: Industry analysis (Assesses the general industry environment in which you compete); and Target market analysis (Identifies and quantifies the customers that you will be targeting for sales). The analysis should also include a SWOT Analysis (Strengths, Weaknesses, Opportunities, and Threats) to identify potential challenges and opportunities. 
5. Risk assessment:  The business risk assessment helps you identify, analyse and prioritise risks. The risk assessment will assist you to anticipate, minimise and eliminate risk, protect the business against potential threats, and will allow for improved decision-making, since the risks would have been already been anticipated ahead of time.
6. Marketing and sales plan:  A marketing and sales plan is the marketing strategy that a business will implement to sell its product or service. The marketing plan will help determine who the target market is, how best to reach them, at what price point the product or service should be sold, and how the company will measure its efforts. 
7. Operations Plan:  This section should include information about your business operations. It should include details about your production process, supply chain management, and quality control. In essence, it is the process of creating actionable steps that you and your team will take to meet the goals in your strategic plan.
8. Milestones:  Milestones are goals that you set for business, with dates and the person or team responsible. For example: The marketing team will launch a new website by the end of the year. A business plan and strategy cannot turn into a real business without milestones. 
9. Team and people:  The team and people section will normally include information on the skills and experience of your  team. costs. This is to prove to you that you have the right team to execute on the strategy of the business, and to identify where there is a skills gap to be addressed in the future.
10. Financial forecast / budgets:  The financial forecast / budget of  the financial section of your business plan should include a sales forecast, expenses budget, a profit and loss statement, a cash flow statement, and a balance sheet.
11. Financial Plan: Details the minimum requirements for starting your business, the investments you will need to make and how you plan to finance them.

Some practical things to consider and to remember when compiling your business plan, especially for a startup:

• Most business plans typically look to the up-side of business growth.  However, sometimes the business does stop growing.  Expect the business to go backwards and then plan for this possibility.
• Many startups simply do not budget enough for their marketing activities because they think their social media efforts will be sufficient. Set aside sufficient funds to market the business through channels that are most relevant to your business.
• Set aside capital for emergencies or for changes in the business landscape that may not have been anticipated at the start of the business, such as delays in securing customers, higher than anticipated raw material costs, etc.  
• Business plans typically details how to get customers, but then often neglect to provide for methods of giving the customers the best experience in order to keep them. In your plan, include a process of how you are going to get feedback from customers, how you are going to deal with customer complaints, and how to win back lost customers.
• Determine who your ideal customer is (i.e. target segment), and most of the focus of the business should be built around servicing this customer. Broadening the target market seems right in the beginning, but in the end, can lead to financial pains. 
• A good human resource strategic plan that addresses how the entity will attract, motivate and retain the talent needed to grow the organisation must be built into the business plan.  
• Include in your plan strategies of how you will use collaborations, networks, automation, technology, branding, etc to meet and exceed your business growth targets. 
• While this may not be included in the business plan document, you must consider how disagreement between the team members or the founders of the business will be resolved, informarlly, formally and informally.

The business plan does not need to be written in full before you launch the business. You can write the business plan as you go along. But at the least, you need to have a one-page document that describes: the problem you are trying to solve, your product or service that solves that problem, your customers, competitors, and a summary of your budget. 

If you do not already have a template for a business plan, here is link for business plan templates (created by Xero) that can get you started:

 - Choose between a One-pager business plan or a long-form formal business plan

In conclusion, crafting a business plan is a critical step in starting and growing a successful business. It provides a roadmap that outlines your goals, strategies, and financial projections, helping you stay focused, organised, and motivated. It also helps you identify potential challenges and opportunities, making it easier to navigate through the ups and downs of entrepreneurship. Remember, a well-crafted business plan can make a significant difference in the success of your business in the long-term. So, take the time to create a professional business plan and set your business up for success. 

Now, got out there and WIN!!