Video Transcript: Putting Together A Business Plan

If you're thinking of starting a business, you should know how to write a  business plan. It is usually observed that despite having a great startup idea,  most businesses are not successful. According to common statistics within the  first five years of operation 90% of businesses fail, and of the remaining 10%.  Only one out of 10 businesses last past the first five years. So what makes  some businesses fail while others prosper? There may be several reasons,  including but not limited to, poor customer service, poor logistics and Cost  Management, and inadequate product. But the major reason is the lack of a  business plan. Business plans help define goals and achieve them. If you take  out time to set concrete but achievable goals and chart a plan to success. It can  help you realize your dream and make your business flourish. I have compiled  an all inclusive list of areas that need to be considered while writing a business  plan. These will help you in defining your goals and the path your business  needs to take to achieve them. Step one. Define your vision. When you start a  business, you have a clear goal in mind, you know exactly what you wish to  achieve with your business. However, after some time, the clarity of your vision  will become blurred, and you'll forget some of your brilliant ideas. Writing down  your vision for the company will help you to define it. And moreover, it will help  your staff identify with the mission. All daily activities of the business can then be aligned with your vision for the business. This should be the first step of writing a business plan. Step two, set your goals and objectives for the business. Never  assume that your goals need to be small to accommodate your limitations. Think big. Clearly define your short term goals, the ones that you wish to achieve  within 12 months. Midterm goals those that will take between two to three years, and long term goals. Consider all aspects such as the revenue you wish to  generate, the number of outlets you want, the number of customers you need in  your database, the target population and age groups as well as the amount of  passive income that needs to be generated in future. Step three, define your  unique selling proposition. What is it about you that is different from the crowd?  Your unique selling point or USP will make you more attractive to potential  customers? How was your product or service different from others in the market, it could be anything from additional services to personalized customer service.  You can even offer them better after sales, warranty and support. While writing a business plan. You just need to highlight the extras that your customers are  getting from you to make your business stand out. Step four, know your market.  It often happens that you have a brilliant idea, but someone else has already  started a business with a similar plan. This is a very common occurrence, but  you should not let this stop you how many petrol stations are there? several  businesses can provide the same service and still survive, as the marketplace is huge, and it can sustain multiple businesses. But for this, you should know your  market like the back of your hand research and find out how many competitors  you have, what services they offer. What are the current and future trends of the 

industry know the larger picture? Are there certain benchmarks that can be used to gauge your business performance, such as gross turnover, profit, margins,  etc. Once you know the inner workings of the market, you can manipulate them  in your favor. This is an important part of learning how to write a business plan.  Step five, know your customer. This goes without saying customers are the most important part of any business. And you should know the customers your  business caters to today, customers are spoiled for choice, and they have 1000s of options for every product. So if you want them to buy your product, you  should know what your ideal customer wants. This is the reason why you need  to define your target populations and research their habits while writing a  business plan. Understanding the motivation behind customers actions can  make your business successful. You can focus on the areas that grab your  customers interests, and stop wasting energy on the rest. Put yourself in their  shoes and then think what would make them choose you each time. Write down  the ideas and implement them. Step six, research the demand for your  business. You must have studied the demand and supply curve. Even if you  haven't, it stands to logic that there should be ample demand for your product.  To find out the demand before investing in a new business, the basic rule is  demand should be more than supply. If this holds true for your market, your  business will thrive. But if the demand is less than the supply, your business will  eventually die out. So do your homework and gather as much information as  you can. You can do a secondary search right from your home over the internet  or your public library. You can even visit government offices for this information.  But by far, the best option is primary research where you directly interact with  your target audience to know their preferences and how ready they are to buy  your product. So hit the road and note down all the interesting ideas you get to  increase the demand. Be smart, and invest your life savings only after  ascertaining that there is a demand for your product. Step seven. Set your  marketing goals. So you have finished the research and defined your business  vision. The next step in writing a business plan is setting up marketing goals.  These are those goals that define how your product would look like what it will  cost, how you'll distribute it, and the ways in which you can promote it. Most  businesses do plan this but they neglect the most important areas. You should  set up measurable marketing goals that will help achieve your primary business  objectives. Questions like the number of products you'll sell, what will be your  product development strategy, your price margin, delivery methods and  promotion plan should be duly considered. When you ask yourself these  questions, they will help define the goals for marketing your business. Step  eight, define your marketing strategy. Now that you have your marketing goals,  you need a plan to achieve them how many products you need to produce and  sell and at what profit margin so as to get your desired revenue. What will be  your system of delivery and your coverage area? What will be the strategies to 

promote your business, the media that you will use. Be very specific, as these  will translate to action and your ultimate success or failure. Plan for every  eventuality while writing a business plan. This is a very vital step of writing a  business plan so acquaint yourself with it, so that you can easily navigate  through each point. Step nine, take action. And of course without action, all else  is a waste. This is the most important part of writing a business plan. You can  plan all you want. But unless you do the actual work and bring customers to  your storefront, you won't earn anything. Even if you find that according to the  business plan, your idea isn't viable. Don't give up. There are 1000s of other  ideas out there, and you can ultimately find one that suits you. If you wish to be  wealthy, healthy and happy, there is a business waiting for you to grab it. Your  Business Plan will provide the direction and focus, but you will need to take the  first step. writing a business plan isn't difficult. If you know what you should  focus on you now have an idea of what is important and how you should tackle  the task of writing a business plan. And you are now better equipped to start a  successful business. Start your research today. Jot down all those brilliant ideas. Set your goals define a path and don't let anyone stop you. Now you know how  to write a business plan. And the mantra for success is in your hands. Make the  best of it.