Business Plan and how it is going to solve business problem?
What is Business plan?
Business plan is a written document used as a roadmap for a business and contains the goals and objectives of the business, how to reach the goals ,ways of marketing , financial and management operations .
This has been core in starting of any business since it gives a guideline on how to operate and where the business will be in future .This covers the financial , management and marketing structure that will enable it to stand out in the market considering the blueprint .This vital since it will enable one to know whether the business is on course or and the laid plan if it is implemented .Thus you can come up with an effective strategy for the growth of the business which will make you understand the financial needs of the business as well as be able to attract financial intuitions for lending/funding .There are many ways to make a business grow considering the plan laid down . There is need to understand how the source of fund and the amount , do some visibility study and identify the strength and weakness within out outside the area as well as for the business itself if it will be economically viable . One has to understand the population and the market trends before setting up a business the availability of raw material and the available market of your products . This needs a lot of research and it will be important when comprises a team of experts who will conduct their research and advise accordingly to what is required and what is not required . Most of the business before starting will have to give a report on the SWOT analysis before commencing which will help everyone within of what might be encountered along the way so as to prepare them earlier and be able to try and seal any loophole that may deter them from achieving the companies goals .Therefore it is important to have a clear roadmap of where the business is going the challenges that may be encountered and how to reach the goals .looking at big companies there have the tendency of having a large staff or less leaving them with the task contemplating about strategic questions and the induction over the coming years . This has made most of the small and medium size business which don't have the financial capabilities to recruit their own staff disadvantaged when it comes to developing a strategy which cannot be done departmentally hence the case rest with owner of the business who will be tasked with all that .This leaves most of the small and medium-size business struggling or even end-up failing because they are unable to develop a strategy for future plan and implement it .This can be as a result of failing to recognize the market developing since they are unable to promote the right products in the markets , poor use of technology as well as poor decision making among others .Therefore for any successful company or business there is need to have strategic thoughts and decision to make the business to move forward with ease and be able to position itself in the market correctly and be able to compete even globally favorably since there is already a lay down plan for future and are prepared when it comes to emerging market trends.
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Business Idea?
Therefore when coming up with a business idea , it should be versatile hence it should not only be able to be used by the founders or owners of the company but also best suited candidate who will be able to steer it to greater heights as stated by SchwetjeandVaseghi (2007) .
This also serves as a very vital tool when it comes to management of the business or company since there is a systematic and elaborated business plan to guide them on what to do and it controls most of the decision making within to enable the plan work according to the strategy . This normally a joint decision and is very important to the success of any business as they are working as a team. This goes all the way to the branches if the company has branches which they will use that as a blueprint to the success of the company.
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Detail information of the business how it is going to solve business problem
A business plan should be able to give a detail information of the business how it is going to solve business problems factoring in the consumers, the organization and how it is going to serve all this .All this is done with the help of experts who will help in filling the gap in the with the outlined plan look at the location where the business can be success after identifying what is lacking in the market.
One needs to understand the business and better understanding of the market analysis so as to understand the industry well and identify the target market of the products or services. A competitive research is a clear indication that the business is getting on well in terms of research. This enables one to identify the strength and weakness of the business.
It is important to develop a clear business structure that can be understood by everyone so as it is easy to incorporate other important personnel in the business. Everyone is allocated duty regarding his or her area of expertise .There can be use of chart to show the flow of management considering their resumes and CVs of the core members of the team.
Customers need to understand how they are going to befit from the business what services will be offered and even any technological methods that will be incorporated .This attracts them more since there can understand the structure as well benefits they are going to get from the business .after all that , it remains a challenge how you will be able to maintain the customers as well a ensure there is still addition of more clients to the business so as to stay afloat .
The challenge of having a strategy that fits that needs of the clients is another thing that keeps evolving in the business world. This includes making financial projection of the business and developing a way they will retain and keep attracting new customers who are not informed about the services available and the benefits they are likely to accrue from that .This consists a team from the sales and marketing wo formulate the on how to attract new customers, the taste and preference and the strategies to be used.
A business cannot commence without having a funding formula, This comes when you have clearly outlined how much is required to kick start, the source of funding and the methods applied if the funds are grants or loan , the terms applied and what is going to be used the funds if it is on buying the equipment's , paying salaries or settling other revenues or billing and for how long it is going to be paid back.
Therefore the task remaining will be to convince the financers about the financial projection of the business if it is healthy regarding the cash flows .this is clearly indicated from the financial statements and balance books looking at the performance monthly , quarterly this will help a lot in fiving the projections of the in terms of finance .
Most of the small businesses have had also a fair share of their own challenges in as much as they have not been cumbersome in management and does not require a lot of capital or resource to start .The competition globally has been stiff such that it needs a lot of inventions and innovation for one to fit well in the market .Most of the small business have been unable to come up with strategic plan to follow and some which have had have not followed it to the latter .That is why it has been important for an organization or business to be able to analyze the environment and be able to formulate the right strategies for the business .This should come also with a vision and mission which will be able to give the business a bearing in which the strategic plan formulated will be used for strategic implementation .It has been noted that most of the small and medium enterprise do not have a developed strategic plan which contrary to strategic literature which dictates that for a business to be successful it requires a strategic plan which is vital in guiding the future of the business and be able compete favorably and survive . This has been lacking in most of the small business. This has been a source of concern since neglecting the strategic plan has most put most of the small business at risk of collapsing and will not be able to achieve the full potential in growth and performance as it is intended .For that case , there should be a considerable research that will be able to unearth the underlying factors that may be hindering the growth and performance of the business as well as the strategic plan and effective running for survival and better turnover rate .
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There is also need to strengthen the models used ion business so as it is at per with the other business so as to ensure there is its survival as well as improved performance and profitability .Most of the small and medium business do not have proper managerial structure and if there is any then most of them do not reward or give incentives to their workers to boost their morale and be able to better their performance .That is another way to encourage the employees and be able to be inventive and innovative since most of them if treated well feel inclusive and which makes them feel like the own the business too.
This study will help owners and those in charge be able to appreciate the value of strategic planning hence encourage them to adopt it .It comes with a lot of benefits since they will be able to assess their business on day to day evaluation and be able to project the next level intheir business .For those who have not adopted the plan will be able learn from the others who are using the strategic plan in managing their business.
Most of the small and medium businesswho have not adopted the plan , some benefits from government plan which come in and train them on how they can better run the business .This help most of them who are struggling financially be able to understand how they can attract financial institutions who can come to their aid and assist in improving the business . There is also need to equip them with skills which will enable have the capacity as entrepreneurs so that they are able to organize ,develop , manage and plan their business right using a strategic plan .
Challenges in small and medium enterprises
When the business is growing , this becomes the joy and dream of every entrepreneur but all this this comes with challenges along the way for one to reach those heights .Most of them before the start are faced with financial issues try to establish the business which some are done through friends and family . Some who source from banks or other financial institutions which may charge exorbitant interest may leave the business struggling in terms of servicing the loan ,sustaining itself as well as covering the expenses where necessary .
There are some who have got into the wrong business whereby someone came in because of the fame that has been carried by it then invest in it but when it comes to commitment to the business becomes a challenge .This teaches us that we need to be disciplined in the business and deliver exactly what you have committed yourself to .This will help one to expand the business and be able to attract and maintain the customers.
There is another challenge of cash flow with is vital in most of the business .Most os the small and medium business do not have t financial muscles hence when there are problems from their cash flow can leave them struggling . This can come about when you can perform your duty or task timely but when it come to payment after raising the invoice the payment comes after one or even more . When one is not well financially, then it will mean to close the business since there are bills and other expenses which are needed to be cleared like infrastructure cost , employees salaries which can deem to be a challenge .In that case one can come up with a proper budget or planning which can enable him/her to sustain the business before payment from the clients . There is also way one can make arrangement with the clients make reduce the time on invoice to ease the pressure on the business . Another way can be to agree with the vendors to be patient until the payment has been made so as one con clear with them .
Most of the new entrepreneurs leave their regular job to overwhelmingly join the self-independency some come with a meagre source of finance in their accounts which will not last long . This makes them struggle a lot to sustain the business.
We have issues of competition in the market since you may find many businesses of the same and are concentrated in one area, this pose a very big challenge.This can hinder the business to hire more employees since it will not be able to sustain the wage bill considering the income.
Business plan & identify challenges that can hinder them to reach their goals
Business idea is concepts that can be used for financially gain and is centered on goods and services for money. This comes first then the idea is conceptualized into business .The key issues to entrepreneurs when it comes to starting a business is the potential of the business if it is economically viable. This comes from a team of experts who come together to give their views after an extensive market research and background check basing on their knowledge and experience collectively.
This is all done considering diverse characteristics basing on their education background to effectively bring their evaluation as a team. There are a lot of things which are factored in such as education of the population, age, employment which can positively impact on the outcome when you start a business. Considering all those diversity can impact in a way that there can be difference test, interest, value in the area.
Therefore there is need to look into all those areas when you have a business idea in mind which can be economically viable not only in the short term but also in the long run .There is also need to have knowledge in that area or field for one to able to run or navigate in the field with ease or either source the from experts which sometime can be costly for a starting business .That can also lead to poor management since you are engaging in the field where you are not well versed. The market structure therefore play a very significant role in the market and demand. Furthermore there is financial issue which is vital .The available capital and resources and what is needed to be added .Thereafter , there is issues of competition which one should consider since it can pose a threat to the new business .All this can successful with proper planning considering the location of the business and raw material if the material are bulky or cumbersome when it comes to transportation ,is the environment favoring the location of the business as well as enough personnel to run the business .There are many factors to look at when starting a business or developing a business idea which may include the knowledge and expertise in the field , Market or demand , start-up costs, capital and finance , competition, location and workforce .
There is many potential market or opportunities which remain untapped therefore the need for entrepreneurs who can explore the market very well. This can happen when we have a well-defined structure of working which will enable one to run the business effectively and efficiently. We have such like
Capital
There is need to understand the amount of capital required when you want to start a business so as one cane be able to plan on the resource required in the running of the business. This is core because without it a business cannot start .This can be inform of financial or in assets and material form .There are many source of funding a business which include personal savings, from friends and family to crowd funding .An entrepreneur with a great idea will be able to attract financial agencies or institutions.
Business strategy
Business cannot succeed without proper planning, therefore there is need to strategize the business idea before conceptualizing it. There are many factors considered in planning. For any business to be successful then they should work with experts or people who are well versed in the field. This will ensure proper running of the business as well as better services .This tell us that the structure of the business management is vital in making it a success.
Market and demand
There are many ways a business can be a success considering the market and demand of goods and services .This is vital in any business and is among the first things to be conducted during visibility plan to ensure there is potential customers or readily available market for the product or services offered .This goes hand in hand with target market and the technology applied in attracting clients as well as quantity production but at minimal cost. Technology has been very significant when it comes to reaching clients which can be through use of social media, websites google search engines and others to reach a wider market.
Business should put into consideration the start-up cost whereby it meets minimum requirements set by the government in effective running of the business which include tax, registration fee and others charges as required by the law. This affects business positively or negatively depending on the charges imposed hence any business which is not stable cannot survive. Most business people consider this as a loss since its not adding value but rather incurred as an expense.
Therefore in any start of a business, it should be plausible just from the start because the idea represent the future of the business hence it should have an outlined of its future and have a clear vision as to where the company will be in the near future.
Business needs a lot of planning , research and sacrifice in order to take to another level where it can be termed established .This include the input determines much as resources that will enable to grow . The access to capital from friendly financial intuitions matters a lot to since there are some which offer exorbitant interest which can lead to many business struggling to service the loan as well need to sustain itself. That is why there is need to have a plan and a vision for the business which will be used as a blueprint to drive it to the highest scales in the market .There should be also proper management of funds as stated in the plan since when one decides to go otherwise according to the plan may make the business lack its objectives which is the core to running the business.
Conclusion
Most of the small and medium enterprise need to develop a culture of strategic planning which they need to implement and have a clear vision and mission. This need to used as a guideline in their business .Consequently , this can turn out to be very beneficial to the business as they are able to plan for the future of the business and be able to identify challenges that can hinder them to reach their goals .