The following practical rules are intended to help you, think through the business planning process. These will assist you to avoid prematurely embarking on a business venture.Before you even start with writing the business plan, you should reflect on the following basic rules:
1. Vision- Are you clear in your mind about your business idea? What is the purpose of your venturing into this business?
2. Timing- Is this the right time for you to start a business?
3. Information gathering- Have you done some preliminary formal or informal research on the business you want to venture into? If so, what information have you gathered and what does it tell you? List all your findings, with particular attention being given to opportunities and threats.
4. Competition- Who are the key players in your chosen type of industry? Study them to see if you can survive in the same market they operate in. How will you compete with them?
5. Pricing- What is your pricing strategy? How much will you charge and have you compared with the competition in the market?
6. Capital- Where will the financial resources to operate the business, come from? Will it be your own or borrowed money? Do the math. Calculate start up costs and your working capital-where from and where to?
7. Location- Where will your business be located? Start place or area. Or, is it going to be an online web based operation? You must clearly say where.
8. Expertise- Do you or does your partner (if any) have the know-how of the products/ services you want to provide in your intended business venture? Determine how and who will manage the business.
9. Staff Budget- How many employees will you employ and what is their professional background? How much will you pay them?
10. References- Can anybody vouch for you-your personality, trustworthiness, creditworthiness etc?
When you have taken care of all the above basic rules, then and only then, will your business plan be much easier to write. These are the factors that have to put into consideration before embarking on a business plan.
