Reference no: EM132316370

Preparing yourself

Before you start writing your business plan, you should honestly evaluate yourself and decide if your business idea has a good chance of success. Analysis can help you anticipate any challenges you may face and help you overcome them.

Analyse your business idea

Is your idea feasible? Before you get started, find out if there is a demand for your products or services. It's also useful to find out who your competitors are and whether the market can sustain your business.

Researching all aspects of your business idea will involve gathering, analysing and evaluating information to help you write your business goals. Some questions to consider are:

- What product/service will you provide?
- Is your idea viable?
- How will you protect your ideas?
- Is there a market for your product/service?
- What skills do you need?
- Who are your competitors?
- What difference will you bring to the market?
- Do you have the financial capacity to start a business?

Analyse yourself
Are you ready to venture into business? Operating a small business is not just about working for yourself, it's also about having the necessary management skills, industry expertise, technical skills, finance and of course a long-term vision to grow and succeed.

At the outset it's important to consider whether you really understand what's involved and whether you're suited to business and self employment. Examine these questions:
- Why are you starting a business?
- What are your business and personal goals?
- What are your skills?
- What income do you need to generate?
- What are the advantages and disadvantages of starting your own business?

Business planning
Once you've conducted research into the feasibility of your new business you're ready to write your business plan.

A business plan provides direction, keeps you on track and is usually a requirement when you seek finance. Depending on your business type, your plan could include the following sections:
- Business Summary: A one-page overview written after your business plan is finalised.
- About your business: This is typically called the management plan or operations plan. It covers details about your business including structure, registrations, location and premises, staff, and products/services.
- About your market: This is the marketing plan. It should outline your marketing analysis of the industry you are entering, your customers and your competitors. This section should also cover your key marketing targets and your strategies for delivering on these targets.
- About your future: This section covers your plans for the future and can include a vision statement, business goals and key business milestones.
- About your finances: The financial plan includes how you'll finance your business, costing and financial projections.

Regular review
Business planning is an ongoing business activity. As your business changes many of the strategies in your plan will need to evolve to ensure you business is still heading in the right direction. Having your plan up to date can keep you focussed on where you are heading and ensure you are ready when you need it again.

Distributing & protecting your plan
A business plan is a blueprint for how your business will run and reveals what future direction your business will take. Understandably you will want to be careful who you show your plan to and avoid your competition seeing it.

Having an understanding with third parties when distributing a plan could be enough protection for some businesses, however others who have innovative business practices or products or services may wish to go further and sign a confidentiality agreement with each person to protect their innovations.

It may also be a good idea to include some words in your plan asking the reader not to disclose the details of your plan.

Attachment:- financial .rar