In this
article we will see what is a business? Its definition, strategies to start
business and what are the steps that should be considered while writing
business plan.
What is a
Business?
Business is
the repeatable process that:
· Creates
and delivers something of value that other people want or need.
· At
a price they are willing to pay.
· In
a way that satisfies the customer’s needs and expectations.
· So
that business bring in enough profit to make it worthwhile for the owner to
continue operation.
Most of the
people think that starting business is big deal, they think that it will
require lots of money, hard work and they will also have to quite the job.
When we are
planning to start business, most of us think about Elon Musk, Bill Gates and
Ambaani etc. But basic idea is that first we should think about side business
which is profitable and sustainable which can provide us side income with less
investment of money.
If you're
thinking of starting a business you should know how to write a business plan. It
is usually observed that despite having a great start up idea most businesses
are not successful. According to common statistics within the first five years
of operations ninety percent of businesses fail and of the remaining ten
percent only one of the ten businesses last past the first five years. So what
makes some businesses fail while others prosper, there may be several reasons
including but not limited to or customer service, poor logistics and cost
management and inadequate product but the major reason is the lack of a
business plan. Business plans help define goals and achieve them. If you take out
time to set concrete but achievable goals and chart a plan to success, it can
help you realize your dream and make your business flourish. I have compiled an
all-inclusive list of areas that need to be considered while writing a business
plan. These will help you in defining your goals and the path your business
needs to take to achieve them.
Step 1: Defying
your vision
When you start
a business you have a clear goal in mind, you know exactly what you wish to achieve
with your business however after some time the clarity of your vision will
become blurred and you'll forget some of your brilliant ideas. Writing down
your vision for the company will help you to define it and moreover it will
help your staff identify with the mission. All daily activities of the business
can then be aligned with your vision for the business. This should be the first
step of writing a business plan.
Step 2: Set
your goals and objectives for the business
Never assume
that your goals need to be small to accommodate your limitations. Think big
clearly define your short-term goals, the ones that you wish to achieve within 12
months, midterm goals those that will take between two to three years and
long-term goals. Consider all aspects such as the revenue you wish to generate,
number of I’ll let you on, the number of customers you need in your database,
the target population and age groups as well as the amount of passive income
that needs to be generated in future.
Step 3: Define
your unique selling proposition
What is it
about you that is different from the crowd, your unique selling point or USP
will make you more attractive to potential customers. I was your product or
service different from others in the park in. It could be anything from
additional services to personalized customer service. You can even offer them
better after sales warranty and support. While writing a business plan you just
need to highlight the extras that your customers are getting from you to make
your business stand out.
Step 4: Know
your market
It often
happens that you have a brilliant idea but someone else has already started a
business with a similar plan. This is a very common occurs but you should not
let this start - how many petrol stations are there, several businesses can
provide the same service and still survive as the market place is huge and it
can sustain multiple businesses but for this you should know your market like
the back of your hand. Research and find out how many competitors you have,
what services they offer, what are the current and future trends of the
industry. No the larger picture are there certain benchmarks that can be used
to gauge your business performance such as gross turnover, profit margins etc.
Once you know the inner workings of the market, you can manipulate them in your
favor. This is an important part of learning how to write a business plan.
Step 5: Know
your customer
This goes
without saying. Customers are the most important part of any business and you
should know the customers your business caters to. Today customers are spoiled
for choice and they have thousands of options for every product. So if you want
them to buy your product, you should know what your ideal customer ones this is
the reason why you need to define your target populations and research their
habits while writing a business plan. Understanding the motivation behind customer’s
actions can make your business successful. You can focus on the areas that grab
your customer’s interests and stop wasting energy on the rest. Put yourself in
their shoes and then think what would make them choose you each time. Write
down the ideas and implement them.
Step 6: Research
the demand for your business
You must
have studied the demand and supply curve. Even if you have it stands to logic that
there should be ample demand for your product, find out the demands before investing
in a new business. The basic rule is the man should be more than supply. If
this holds true for your market your business will thrive but if the demand is
less than the supply your business will eventually die out. So do your homework
and gather as much information as you can you can. Do a secondary search right
from your home over the internet or your Public Library. You can even visit
government offices for this information but by far the best option is primary
research for you directly interact with your target audience to know their
preferences and how ready they are to buy your product. So hit the road and
note down all the interesting ideas you get to increase the demand. Be smart
and invest your life savings only after ascertaining that there is a demand for
your product.
Step 7: Set
your marketing goals
So you have finished
the research and define your business vision, the next step in writing a
business plan is setting out marketing goals. These for those goals that define
how your product would look like, what it will cost, how you distribute it and
the ways in which you can promote it. Most businesses do plan this but they neglect
the most important areas. You should set up measurable marketing goals that
will help achieve your primary business objectives. Questions like the number
of products yourself, what will be your product development strategy, your
price margins, delivery methods and promotion plan should be duly considered. When
you ask yourself these questions they will help to find the goals for marketing
your business.
Step 8: Define
your marketing strategy
Now that you
have your marketing goals. You need a plan to achieve them. How many products
you need to produce himself and at what profit margin so as to get your desired
revenue. What will be your system of delivery and your coverage area? What will
be the strategies to promote your business, the media that you will use? Be
very specific as these will translate to action and your ultimate success or
failure. Plan for every venture a lity while writing a business plan. This is a
very vital step of writing a business plan so acquaint yourself with it, so
that you can easily navigate through each.
Step 9: Take
action
And of
course without action all else is a waste. This is the most important part of writing
a business plan. You can plan all you want but unless you do the actual work
and bring customers to your storefront, you won't earn anything. Even if you
find that according to the business plan your idea isn't viable don't give up.
There are thousands of other ideas out there and you can ultimately find one
that suits you if you wish to be wealthy healthy and happy there is a business
waiting for you to grab. Your business plan will provide the direction and
focus but you will need to take the first step. Writing a business plan isn't
difficult if you know what you should focus on.
You now have an idea of what is
important and how you should tackle the task of writing a business plan and you
are now better equipped to start a successful business. Start your research
today jot down all those brilliant ideas, set your goals, define a path and
don't let anyone stop you. Now you know how to write a business plan and the
manager for success is in your hands, make the best of it.
Comments
Post a Comment