Planning to set up and operate a business requires a realistic foundation. There are times when an idea in the head does not appear nice on paper. For this reason, it is important to draw up a business plan in order to evaluate economic viability in all aspects of the business venture as well as for the analysis and description of business prospects.
Drawing up a business plan is indeed an important step to take for any smart entrepreneur no matter what size of business he envisions. This part is often skipped, that is why the easy step-by-step process of drawing up a business is presented here in a simple manner.
- Starting a business is initiated by an excellent idea. Be ready to brainstorm about how the business will be potentially operated. And then draw up the basic concept of your business.
- Draw up a feasibility study. After doing this, gather the necessary data regarding the specifics of the business concept.
- Provide at least three options and future projections. However, it is recommended to set a reasonable limit especially for long term future plans. It is even smarter to pay attention to short term goals and simply modify them as the business progresses. Also make sure to refine and focus your business concept based on the feasibility study undertaken.
- Conduct a thorough research about the field of your expertise. Find similar industry projections of existing projects or businesses. You may also want to pattern their financial ratios and requirements. Outline the specifics of your own business by utilizing the what, where, when, why, and how approach.
- Make the necessary details and parts such as the title page, statement of mission and vision, description of the company executive summary and marketing strategy. Also, include the location where you want your business to be situated and the promotional materials to be used.
- Make the business plan a compelling one. This way, you will not only be guided regarding the focus of the business, you will also get insights in the business relationships that you will be dealing with.
- Review the business plan you have just drawn up. It may necessitate you to make series of revisions according to the timeliness of the information gathered. Make sure that you are updated with the current trends, prices, and market.
- Consult someone who can help you criticize your plan and provide constructive comments. He can be a business adviser or someone you trust to be knowledgeable of this matter.
Business plans vary from every business. There are general formats that can be downloaded from the Internet or can be patterned from various business planning books. In addition, there are even short term courses that help entrepreneurs to be able to prepare a business plan.
A business plan is the roadmap that shows the chart of the business. However, it is true that there things that you cannot quantify accurately or conditions that you cannot predict. Therefore it is expected that the business plan does not guarantee 100 percent viability.