Unit 2​

Business Plan​

How to Start a Business?​

CREATING AND STARTING THE VENTURE ​

1. Refine your business idea and determine your target buyer​.

Having a business idea is only part of the journey. In order to be successful, you’ll need to do a bit of research before diving in and starting your business. ​

• Conduct market research.​
• Analyze market conditions. ​
• Determine your target market. ​
• Find your target audience.​

2. Create a business plan​

Your business plan maps out the details of your business including how it’s structured, what product or service you’ll sell, and how. ​

• What is a business plan? ​
• How to write a business plan. ​
• View business plan templates. ​
• View business plan examples. ​

3. Choose a legal structure​

Your business’ legal structure can impact what you’re liable for and the taxes you pay. ​

• What is a sole proprietorship? ​
• What is a partnership?​
• What is a limited liability company?​
• What is a corporation?​

4. Comply with legal requirements​

In addition to choosing a legal structure, there are other requirements to follow to ensure your business is operating legally.  ​

• Register your business. ​
• Obtain a seller’s permit.​
• Obtain a business license. ​
• Understand your tax requirements. ​

5. Secure funding​

When you’re starting a small business, getting loans from family and friends may suffice. However, larger ventures will require more capital.  ​

• Funding your small business. ​
• Securing a small business loan.​
• Securing venture capital financing. ​

6. Create a website and social media accounts​

While you may have a brick-and-mortar business, it’s nearly impossible to be successful without an online presence. Set up a website and social media channels to ensure potential customers can find your business online.  ​

• How to start a business online. ​
• How to create a website. ​
• Use social media to grow your business.​

7. Sell your products and services​

Hooray! You’re in business. Now it’s time to make sure your sales processes are as efficient and productive as they can be.  ​

• How to sell your products and services. ​
• Create a sales process framework. ​
• Utilize free sales tools. ​

8. Market your business​

• You’ve created an awesome product and now it’s time to get the word out. Marketing and customer acquisition are key to helping your business grow.  ​
• Develop a customer acquisition strategy. ​
• Learn strategies for marketing your small business.​
• Utilize free marketing tools.​

How to Start a Business?

• Write a business plan​
• Review the legal requirements to start a business​
• Determine your business’ legal structure​
• Register your business’ name​
• Understand small business tax requirements​
• Create a customer acquisition strategy for your business​
• Market the business​
• Sell your products and services​
• Keep your customers happy​
• Fund the business​

Business Plan​

• A business plan is an important document aimed at a company’s external and internal audiences. ​
• For instance, a business plan is used to attract investment before a company has established a proven track record. ​
• It can also help to secure lending from financial institutions. ​

THE BUSINESS PLAN FORMAT ​

• In reality there is no standard format for the presentation of a good business plan. ​
• Business plans vary in content and size according to the nature and size of the business concerned and on the emphasis that is placed on certain critical areas as opposed to others.​

Contents of a Business Plan ​

A business plan should be structured in a way that it contains all the important information that investors are looking for. Here are the main sections of a business plan: ​

1. Title Page ​

The title page captures the legal information of the business, which includes the registered business name, physical address, phone number, email address, date, and the company logo. ​

2. Executive Summary ​

The executive summary is the most important section because it is the first section that investors and bankers see when they open the business plan. It provides a summary of the entire business plan. It should be written last to ensure that you don’t leave any details out. ​

3. Industry Overview ​

• The industry overview section provides information about the specific industry that the business operates in​
• Some of the information provided in this section includes major competitors, industry trends, and estimated revenues​
• It also shows the company’s position in the industry and how it will compete in the market against other major players​

4. Market Analysis and Competition ​

The market analysis section details the target market for the company’s product offerings. This section confirms that the company understands the market and that it has already analyzed the existing market to determine that there is adequate demand to support its proposed business model. ​

5. Sales and Marketing Plan ​

• The sales and marketing plan details how the company plans to sell its products to the target market​
• It details the company’s advertising and promotion activities, pricing strategy, sales and distribution methods, and after-sales support​

6. Management Plan ​

• The management plan provides an outline of the company’s legal structure, its management team, and internal and external human resource requirements​
• It should list the number of employees that will be needed and the remuneration to be paid to each of the employees​

7. Operating Plan ​

• Provides an overview of the company’s physical requirements, such as office space, machinery, labor, supplies, and inventory​
• For a business that requires custom warehouses and specialized equipment, the operating plan will be more detailed, as compared to, say, a home-based consulting business​
• If the business plan is for a manufacturing company, it will include information on raw material requirements and the supply chain​

8. Financial Plan ​

• The financial plan is an important section that will often determine whether the business will obtain required financing from financial institutions, investors, or venture capitalists​
• Some of the information contained in the financial plan includes a projected income statement, balance sheet, and cash flow​

9. Appendices and Exhibits ​

The appendices and exhibits part is the last section of a business plan. It includes any additional information that banks and investors may be interested that adds credibility to the business. Some of the information that may be included in the appendices section includes office/building plans, detailed market research, products/services offering information, marketing brochures, and credit histories of the promoters. ​