Business

nessStep 1: Collect Information

Gather as much relevant information as possible concerning the industry in which you operate or intend to operate (use books, industry associations, existing business owners).

Collect all possible information regarding the market/s you are aiming at (who buys, why do they buy, what are the key features the customer looks for).

Learn all you can about the product/s or service/s you intend to produce, distribute or offer.

Define and decide on the structure necessary to carry out the operation, including the number of staff you will require (see brochure on Business Structure).

Step 2: Analysis

Read over all the material you have collected to determine what it all means, how it can be used and what can be discarded. The key question to ask is:

'Will costs of running the business leave enough from what you expect to make to pay a wage and reasonable profit to you as proprietor?'

When Steps 1 and 2 are completed, you should have decided if there is a market for your product or service which is large enough and sufficiently accessible to indicate that your proposed entry into that market is financially worthwhile. Now you are ready to commit your plan to paper.

Step 3: Strategy Formulation

Decide how the business will operate. You should describe how the business will be managed and the staff and organizational structure that will be in place. There are three parts that go together to make a comprehensive business plan:

* Marketing Plan, which includes location, method of selling, market share sought, packaging, pricing and so on. The four key elements are product, price, promotion and distribution.

* Operational Plan, which includes supply sources, costs and quantities of materials, processes, equipment and methods of extending the services or products offered

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* Financial Plan, which is a master budget for the operation and includes:

cash flow forecast;   balance sheet;  profit...