Business Plan

  • Before starting a business, the entrepreneur must create a business plan that indicates how the business is to be run, its future projections, anticipated challenges, and how to manage these challenges.
  • The business plan is usually printed on a document where the entrepreneur states the business objectives (including products to be sold and targeted consumer base) and location of business, details its (business) operations, resources required, operating costs, projected cash flow, anticipated challenges, and how capital is to be raised, as well as prospects for growth. It can also include a list of business owners if the start-up is to be owned by a partnership.
  • The business plan document is required to have the following:
  1. Name of business.
  2. Type of business – Is it a sole proprietorship, a partnership, or a corporation?
  3. Business owner(s).
  4. Business location.
  5. Business aim.
  6. Products to be sold. This is usually provided as a list.
  7. Average price of each product.
  8. Targeted market.
  9. Market research done prior to drawing up this plan, and the research findings and analysis. Research results are usually included as part of the appendix.
  10. Labor plan, which can also be described as the human resource plan if the business plans to employ workers.
  11. Capital.
  12. Mandatory business resources such as equipment, furniture, and sale tools.
  13. Business operation costs. This includes costs of input or stock, fixed business cost, and the variable business cost.
  14. Anticipated cash flow.
  15. Profit forecast.
  16. Anticipated challenges.
  17. How to manage challenges.
  • The entrepreneur may need to provide a business plan so as to access an overdraft facility or credit or loan.
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