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How to write your own business plan

Are you considering putting up your own enterprise soon? You should first craft your own business plan. It will serve as your guide before and during roll out of the venture. Here are the steps to write one on your own.
By Renz Lyndon Paguio |
How to write your own business plan

As an aspiring entrepreneur, you must be clear on where to set your foot first. Deciding on which industry to venture into may be a challenge, along with planning the marketing, technical, financial and organizational aspects of the endeavor.

Most experts advise startup entrepreneurs to set a plan first. The Bureau of Micro, Small, and Medium Enterprise Development (BMSMED) of the Department of Trade and Industry (DTI) shares the following guidelines that will help you when writing your own business plan.

State your objectives

Set business goals and a timetable for the accomplishment of those.

Describe the business

For new businesses, narrate how the idea for your business was conceived, explain what the business is all about, and state your expectations from its development.

For existing businesses, state the business name along with the date and place of registration. Indicate when your operations began together with the names of owners, partners, or major investors. Don’t forget to put a brief history of your enterprise.

THE MARKETING PLAN

Describe your products or services

Write a comprehensive description of your products or services. What are selling to your customers? Describe its uses, as well as its advantages and disadvantages.

Identify your potential market

Identify your present and targeted consumers. Be as specific as possible. Provide information about their age, gender, income level, education, and other demographic information. Use the data to determine the perfect location for your enterprise and the ideal marketing strategy.

Identify your competitors

Know your competition to gain leverage. Identify businesses around your area that are likely to become your rivals. Determine their assets and sales volume (in a legal way, of course) and inspect their financial status. Learn how much money they’re earning and losing.

Study their pricing strategy, quality of products and services, selling methods, etc. As much as possible, learn so much about your competitors so you would know how to strategize against them.  calculator.JPG

Consider your pricing policy

Take into consideration the cost of production and distribution against the perceived degree of acceptance by the market when setting price tags for your products and services. Another factor to account for is the pricing structure of your competitors.

Set your marketing methods

How will you promote or advertise your business? Set strategies about how you will sell your products. You may consider hiring reliable sales and marketing people to do necessary tasks.

Set ways on how to improve your image as an enterprise. Know the channels of distribution you’ll use to reach your targeted customers and understand what they will be thinking when they see your goods.

THE TECHNICAL (PRODUCTION) PLAN

Identify your material requirements and sources of supply

Jot down all materials and office supplies required in your production and identify where to outsource those. For each item, identify how many suppliers there are and determine the best and most reliable among those.

Describe your manufacturing process


Give a detailed explanation of your production process. Enumerate the steps on how the work is done and the equipment and materials required. Create a diagram showing the work flow should a complex process be presented.

THE ORGANIZATIONAL PLAN

Identify key personnel


Be familiar with the key people in your enterprise, including yourself as owner and manager. In the case of partnership or corporation, list the names and addresses of all partners or directors.

Then, list down all positions and the corresponding skills of people needed for each. You may have to state the salaries and wages you are willing to provide to each employee.

THE FINANCIAL PLAN

Determine your financial requirements
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Prepare a forecast that outlines all your capital requirements---fixed, working, and pre-operating capital. Fixed capital includes costs of land and building, lease deposits, land improvement or building renovation, furniture, machineries, and equipment.

The working capital is your reserve money to be used until the business becomes self-supporting. It is used to purchase raw materials, compensate workers, and pay for transportation, telephone, electricity, and water bills for the time being.

Pre-operating capital refers to the money you spend before your business becomes operational. The capital covers business registration, licenses for franchises, or services of a consultant or a lawyer.

Prepare a budget

Budget should include marketing (provides the revenues of the business), production (includes cost of materials and labor), and general and administrative expenses (consists of salaries of administrative staff along with legal and accounting costs). For the first year of operations, projections should be prepared every month; every quarter for the succeeding years.

Overall, preparation can only do so much to assist you when starting your business. Implementation of the business plan is equally challenging, yet important. As a new entrepreneur, stick to your business plan and everything will surely carry on smoothly.

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