How To Create A Feasible Business Plan

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1. BUSINESS SUMMARY

Write an abstract of your business idea. The founder(s), why it was founded, how it will be of benefit to the society, the company slogan, where it will be located. Also, in a sentence, state the sole aim and objectives of the business.

2. VISION STATEMENT

A vision statement is a clear, definitive statement of what you want to accomplish. The long-term goal of the company.

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3. MISSION STATEMENT

The mission statement of a company is a declaration of what is done every day. It defines the day-to-day activities of their work and every person who works for the organization contributes to that mission.

4.OBJECTIVES

These are the specific measures that the business will adopt in order to achieve its goal.

5. COMPANY STAFFS

A list of those starting the company with their specific roles and their qualifications. This helps to define the operations of the business.

6. BUSINESS PHILOSOPHY

This describes the theory or attitude that acts as a guiding principle for behaviour of the business.

7. STATE YOUR TARGET MARKET AND ITS DEMOGRAPHICS

Who are the major benefactors of the business, could be gender, age, interest, educated, illiterates etc.

8. WRITE A REVIEW ON THE BUSINESS INDUSTRY YOU INTEND TO OPERATE

This section is a confidence booster either for the business owner or an investor. It tells an investor that you truly understand your industry and you have found a gap to exploit with your business.

9. STATE YOUR COMPANY STRENGTH

Tell why you think your businesses will survive the industry referencing the gap found in the industry.

10. LEGAL FORM OF OWNERSHIP

Is the company registered? How will the company be controlled? Its best to consult a lawyer before commencing any legal registration especially when it involves other partners, investors or co-owners.

11. STATE THE BUSINESS SERVICES/PRODUCTS

State the services or products (online/offline) rendered by the business and their functions.

12. MARKETING

This section analyses the marketing strategies.

13. MARKET SHARE

Market share is the percentage of a market accounted for by a specific entity. “Marketers need to be able to translate and incorporate sales targets into market share because this will demonstrate whether forecasts are to be attained by growing with the market or by capturing share from competitors. Having identified your target market, an explicit analysis of the industry must be conducted for accurate predictions.

14. CURRENT DEMAND IN TARGET MARKET

What does the target market need to ensure a better service or product? That is, will your business innovation be a better solution provider to their needs and wants?

15. TRENDS IN TARGET MARKET

Trend is a pattern of gradual change in a process, output, or condition in the industry. Identify the trends so you are not obsolete in the market.

16. BARRIERS YOU WILL FACE AS A NEW ENTRY

What are those challenges you will encounter as a new entry into the market? It could be team formation, awareness, insufficient capital, etc. every business must face a challenge as a new entry.

17. HOW YOU PLAN TO OVERCOME THE BARRIERS

Now you know the challenges, what measure can be adopted to eliminate such challenges?

18. HOW COULD THE FOLLOWING AFFECT THE COMPANY

  • Change in Technology
  • Change in Government Regulations
  • Change in the Economy
  • Change in Industry

19. COMPETITION

This is a very important section of a business plan. You must be able to identify other businesses (minimum of 4) in your industry which you think are your closest competitors. Identify their weaknesses and strengths, that way you know what you are dealing with and how to go about it.

20. COMPETITIVE ADVANTAGE

What dominance do you have over your competitors? They could be several.

21. YOUR BUSINESS NICHE

A business niche is a specialized or focused area of a broader market that businesses can serve to differentiate themselves from the competition. You might have a broader relationship with your competitor since you operate in the same industry, but you must be able to carve out a specialization which they regard your precedence. Also state the strategy which will be implemented to dominate that specialization.

Numbers 16 – 21 can be best analyzed using SWOT Analysis.

22. PROMOTION/ADVERTISEMENT

  • What modes of advertisement will be used? Explain why these modes of advertisement.
  • Budget for advertisement.
  • What alternative mode of advertisement will be considered (usually a low-cost budget)

23. SOURCES OF REVENUE

The sources of revenue can come in various forms.

24. OPERATIONAL PLAN

Specific plans for low level and day-to-day activities and processes that will support and enable the tactical plan. This plan guides the production technique, customer service, quality control, etc.

25. PRODUCT DEVELOPMENT

Product development typically refers to all of the stages involved in bringing a product from concept or idea, through market release and beyond. In other words, product development incorporates a product’s entire journey. New product development is described broadly as the transformation of a market opportunity into a product available for sale. In all ramifications, this product(s) is introduced to help improve the company’s services or achieve the mission.

26. COMPANY LOCATION

Where will your business be located? State the requirements for locating the business such as the market, power supply, nearness to customers, how you want the building to be so as to perfectly accommodate the daily operations, etc. Such requirements should be considered when locating your business.

27. PERSONNEL

  • Number of employees
  • Type of labour. Skilled, unskilled or both.
  •  Where and How to Find Them
  • Pay structure
  • Training Methods and Requirements

28. BUDGET EXPENDITURE AND EXPECTED REVENUE

Here with the help of a financial assistance, your draw up a cost budget that will be used to startup and run the day-to-day activities of the business. Also, the revenue forecast will help determine when and how the business will generate its profit. For an investor, the budgeting and forecast will show the point and time of breakeven which will tell if the business is worthwhile or not.

PS: Its advisable to over price when creating the cost budget. This will prevent unforeseen eventualities of inflation. It’s better to have a budget surplus than budget deficit. It is also advisable to under-predict the financial expectation of the business. This way, you are more realistic with your forecast.

Send us a message if you need help creating your business plan.

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