Whether you are just starting a business or in business for sometime
a well -developed business plan is essential. It not only provides
a narrative of the business concept and goods and/ or services it
provides, but should also include analysis of the market, a marketing
strategy, and measurable financial objectives.
The following are components of a business
plan.
Organization Structure: Stipulate
the legal form of the business i.e., sole proprietorship, partnership
(NV) or corporation, the owner(s) and the degree of ownership,
director(s) and/ or management team, experiences, and decision
making structure in which they will work.
Product and/ or Services:
The nature of products and/ or services must be clearly defined.
Thus avoiding any ambiguity as to what makes your products and/
or services unique or different? Will your products and/ or services
be manufactured or imported? If imported where will you get these
products from and how will they be imported?
Location: Describe the physical
location and address of the business and such amenities as parking
availability and accessibility to customers.
Market Analysis: You must
have a keen sense of your market area. Detail the geographic area
you intend to serve, who your potential customers are, their age
groups, disposable income and purchasing habits.
Competitions: Find out who
your competitors are. Note where they are located, what types
of products and/ or services they provide, how profitable they
are, and their weakness and strengths. Also make mention of the
industry itself with respect to its size and outlook.
You might best turn to the Department of Economic Policy &
Research for this information or have a professional market research
or feasibility study done.
Marketing Strategy: Describe
how you plan to market your products and/ or services to ensure
you reach your target customers and what medium of advertising
will be used. Also explain the scope of your marketing plan, selling
activities, and pricing policy.
Financial Analysis: The financial
analysis section of the plan should provide a realistic overview
of the business. Encompassing projected expenditures and revenues,
as well as performance measures such as break-even analyses and
return on investment indicators.
Exit Strategy: In the unlikely
event that the business prove not to be profitable, there must
be a strategy the business and curtail your loses.
Business plans need to be reviewed and revise periodically to adapt
to the ever-changing business climate as well as to accommodate
any changes of objectives and goals of the business.
