Archive for June, 2009:
Designing A Business Plan
While starting a business one needs to consider several factors like securing funding for the business, understanding the market scenario, deciding upon the pricing of your products etc. Quite expectedly keeping track all of these factors in a haphazard manner can only land an entrepreneur in trouble and hence it is imperative that a well structured business plan is devised.
Relevance of a Business Plan
Often people confuse a business plan with a typical document that consists of details regarding your proposed business written in manner which only bankers can understand, with lots of complex figures and calculations thrown in. This perception leads many entrepreneurs who plan to start up small businesses to steer clear of anything that remotely sounds like a business plan.
However what they fail to realize is that a business plan is much more than a complex document. It essentially is a way to place your business ideas on paper and then structure it in light of practical aspects like availability of finance, market scenario, availability of manpower etc. It gives you an opportunity to check the feasibility of your idea and also calculate it potential returns.
Key Sections of a Business Plan
A typical business plan consists of several well defined sections which normally include a marketing plan, an operational plan and a financial plan. A standard business plan begins with providing background information on the organization or individuals proposing the business and highlights their strength. In case of an existing organization, it includes details on their financials, legal structure etc while in case of an individual it focuses on their experience and educational qualifications.
Next it details the business idea which is proposed and presents a market analysis to buttress its case. It then attempts to provide an operational and marketing plan that explains how the organization plans to materialize the business idea and its perceived goals. Last but not the least, everything is placed together in projected financials which are designed to give an idea how the organization will perform in a given period of time.
Depending on the size and scope of the proposed business, various other sections may need to be added to the business plan. For example if the proposed business is large in size then a manpower plan also needs to be included. Similarly if the business idea relates to a new technology, a feasibility plan may also need to be added.
Tips on Writing a Business Plan
Now that you have realized the importance of business plans and what they should contain, the next step involves writing one for your proposed business. Listed herewith are few points which will help you design an effective business plan.
1. Before writing your business plan, try to read an existing business plan of another company which is your niche. This will give you a good idea about to factors that may be relevant to your business. Also you can search the internet for sample business plan relevant to your area of business.
2. Start with a rough draft and continuously work on it by seeking input from various people including your friends and colleagues.
3. Aim to meet experts in your proposed line of business and try to gain valuable insights that may help you refine your plan.
4. Last but not the least in case you experience difficulty in designing a well structured plan, you should look to seek help from a professional business plan writer.
Business Startups: Choosing A Franchise
Often individuals who are interested in opening up their own business venture, look at exploring the various franchise opportunities available in the market. As opposed to the Herculean task of developing a fresh concept, a franchise allows you the flexibility to implement a well established business idea into your local community and derive a healthy profit.
Typically franchise businesses have a higher chance of success owing to the extensive amount of support that is typically offered by the franchiser. This includes guidance on pricing parameters, continuous training to staff and well defined standard operating procedures.
The primary advantage that a franchise business offers is a recognized brand value which helps in instantly drawing customers to your business. A well recognised brand name is a sure shot way to success. You do not even need to try hard to pursue your customers as most of them are invariably drawn to your business on their own.
In spite of all these benefits that a franchise opportunity can bring to you, it is always prudent to be careful while choosing a franchise option. Listed below are few quick tips that will help you in your endeavour
Choosing an Industry that you are Comfortable With
The first step that you should consider while choosing a franchise option involves choosing the industry in which you wish to take up a franchise. For example if you have experience in the restaurant industry, becoming a franchise of a fast food outlet may be the correct choice. Similarly you should avoid industries on which you have a very limited understanding.
Understanding the Capital Requirements
Your decision to choose a franchise should also be based on the amount of capital you expect to raise in a comfortable manner. Avoid hooking up with a high value franchise in case your means do not permit the same. Also one should not take up extensive debts to buy a franchise, as such an investment may become a liability in case of a lean period in the industry.
Checking Out the Location
Nothing can be more important than the location where you plan to take up a franchise. Ideally you should consider multiple locations while deciding on a franchise and choose a place that is best suited for your business. For example if you are planning to take up a retail franchise, a place in a shopping mall may just be right for you. However the same place will be overtly expensive if you plan to take up a franchise of a courier service.
At times, owing to geographical restrictions that are often imposed by franchisors, you may find that the location that you are getting for starting your business may not be counted as a great place to run your business. If such a scenario occurs, you need to revisit your franchise options since a wrong choice of location is a sure recipe for disaster.
Now that you are suitably aware of the criteria one needs to follow while choosing a franchise opportunity, we hope that you be able choose the perfect one for yourself.
