Plan to succeedBusiness Planning

“Without a plan (or vision), the people perish…”

Starting a business from scratch

Advantages

More control and freedom over decisions

Decide on business name

Decide on location

Decide on product mix

No goodwill

Disadvantages

Key decisions about business name, location and product mix are already made

About half of all new small businesses fail within a few years of starting up

Reasons new businesses fail

Financial mismanagement

Poor management skills

Poor record keeping skills

Sales and marketing problems

Failing to get advice

The state of the economy

Benefits of Business Planning

Requires you to assess your idea carefully before spending money

Helps you to become better informed about your potential market

Helps you clarify your goals and objectives

Assists you to identify the opportunities, challenges and issues that may arise

Establishes the resources you will require

Provides relevant information to back up your loan application

What should a business plan

include? Executive summary: overview of the

business, goals and objectives, timelines, goods and services

Marketing plan: market trends, target market, extent of consumer demand, proposed marketing mix (4 P’s)

Operations plan: resources, required including physical and human resources

Financial plan: cost estimates, cash flow, wages, rent