In the world today everyone dreams of being self-employed and as soon as they save enough capital, they start their new business. They all hope to make handsome profit. During the first months things might go well but then later things start going down and eventually the business is closed.
It is so sad to see your hard earned savings disappearing into the thin air without you noticing but as the saying goes prevention is better than cure. So what is the best way to protect your business from unforeseen events and circumstances? Well it is not insurance even though insurance can do you some good. The secret is a good business plan.
When you have a good business idea do not just have it in your head, write it down also. The elephant in the room when it comes to plans is that a huge number of people do not know how to write one so how do they go about it? They will need the following;
1. Business plan software
2. Computer
3. Laser printer
4. Bonded paper The first step is to gather all the information about your business plan.
This includes the market you are targeting, the risks you will face, your competition and most important your goods and services. Now after organizing all these important information the next thing you should do is write a two page summary of it.
Now that you are through with the summary, you will now need to write the description of your company in detail explaining your purpose for existence and expounding on the skills that you and your team have.
The next thing to put on your plan is the product or service that you deal in. you should explain how the product or service is produced and delivered. Costs incurred should also be mentioned. The business plan should also include market information so discuss about the market territory you are venturing into.
Talk about your potential customers and about your competition as well. What is your marketing strategy or maybe you should put it this way, how do you plan to have your name out there? State how you will advertise your business and what mode you will use.
You should also mention the costs involved in doing so. No one starts a business in order to suffer a loss. Every business person wants to make profit and lots of it. Does your business plan contain this information? If not then it should.
You should specify how much you want your business returns to be and within what period or time frame. You should also put your business expenses in the business plan. Now one thing you should know is that you are preparing a business plan so that it can be read by someone possibly a financial advisor who will then tell you what direction to take.
Your financial advisor gets a lot of business proposals so do not write them a book at least keep your plan to fifty or less pages. You write a new business plan for your business whenever the business moves to a new level where the objectives of the former business plan have been met.
It is so sad to see your hard earned savings disappearing into the thin air without you noticing but as the saying goes prevention is better than cure. So what is the best way to protect your business from unforeseen events and circumstances? Well it is not insurance even though insurance can do you some good. The secret is a good business plan.
When you have a good business idea do not just have it in your head, write it down also. The elephant in the room when it comes to plans is that a huge number of people do not know how to write one so how do they go about it? They will need the following;
1. Business plan software
2. Computer
3. Laser printer
4. Bonded paper The first step is to gather all the information about your business plan.
This includes the market you are targeting, the risks you will face, your competition and most important your goods and services. Now after organizing all these important information the next thing you should do is write a two page summary of it.
Now that you are through with the summary, you will now need to write the description of your company in detail explaining your purpose for existence and expounding on the skills that you and your team have.
The next thing to put on your plan is the product or service that you deal in. you should explain how the product or service is produced and delivered. Costs incurred should also be mentioned. The business plan should also include market information so discuss about the market territory you are venturing into.
Talk about your potential customers and about your competition as well. What is your marketing strategy or maybe you should put it this way, how do you plan to have your name out there? State how you will advertise your business and what mode you will use.
You should also mention the costs involved in doing so. No one starts a business in order to suffer a loss. Every business person wants to make profit and lots of it. Does your business plan contain this information? If not then it should.
You should specify how much you want your business returns to be and within what period or time frame. You should also put your business expenses in the business plan. Now one thing you should know is that you are preparing a business plan so that it can be read by someone possibly a financial advisor who will then tell you what direction to take.
Your financial advisor gets a lot of business proposals so do not write them a book at least keep your plan to fifty or less pages. You write a new business plan for your business whenever the business moves to a new level where the objectives of the former business plan have been met.