Starting a business in Nigeria is one of the heart desires of many. However, a lot of businesses do crash after a few months of establishment. The cause for this great failure often does not come from the market structure or low responses from the consumers.
Some people do blame the economy of the country and the inflation in prices for the crash of their effort. However, most problems faced by businesses don’t come from what is done during the operation. Often, the managerial aspect of the business is responsible for the collapse.
Business owners mostly fall into the trap of inadequate planning. And like the popular saying, “If you fail to plan, you have planned to fail.”
This is the reason why this article is written. To aid emerging business owners on how to write a business plan before rolling out the operation.
Keep calm and learn the step-by-step method of writing a business plan. It’s a must step you need before you start that business you have in mind.
What is a Business Plan?
A business plan is the overall projection of a business. It helps to have a bird’s view of your business and creates a path. It answers the questions of how, why, what, when, and where. Where the business would be located, how it would operate, payment methods, and other managerial factors.
In all, it shows the structure and the goal of the business. Many people channel their attention towards what the business is to achieve and neglect the how. A business plan covers these and more.
When Do You Need a Business Plan?
Although, it’s never too late to write one. But it’s better to make your bed before you lie on it. Writing a business plan before operational activities commence gives a sense of direction rather than starting later.
Thus, you should write a business plan when the idea drops into your mind. Having enough funds to materialise your idea could give you a push on starting immediately after you have the initiative.
The best step to take after conceding the idea of starting a business is to write a business plan.
Step-by-Step Guide on How to Write a Business Plan
Writing a business plan is more vital than having the goals stuck up in your head. Take the time to write every component down on a sheet or type it on any material. Here are the key areas you must write down in your business plan.
1. Name of the company
It may look too simple to see this at the top of the list. The name of a company is more than just a combination of words. Sometimes, the name of a company could send a message about what the firm is all about. Some prefer to use their name or the name of the product has the company’s name.
2. The Goal
As much as making money is one of the paramount reasons why people start a business, considering the value your business wants to offer to society needs to be identified. If your business only aims after financial expansion, it might soon go extinct. Create a goal.
3. Administrative Structure
The administrative structure would show the managerial structure of the organisation. It would review what each individual is supposed to do. The chain of power is also described from top to bottom.
4. Products and Services
What the company wants to do. The name of the product(s) that would be produced. If the company is to be rendering services, the services should be outlined. It is better to start with fewer products while others can come in as the company progresses.
Under the marketing strategy, the consumers should be the focus. Who needs the product, and how much can they buy it? Factors that would determine the audience are the location of the site and what you produce. It’s better to start a business to meet the needs of people. With that, the relevance of the company would stand. Also, competitors must be considered in your marketing strategy.
Not everyone has enough financial ability to finance the projections. In this case, there is a need to draw a plan on how to get and manage funds. Getting the capital could be through a loan or a personal account. No matter what the case may be, draft out the amount needed to start the work and how you intend to make the company continue running.
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Do a complete outline of each of the areas you are writing about. Make it clear to an extent that when you submit the document to a sponsor, the document would be understood without consulting you.