James and his friends wanted to run a business after they finish their respective study. They are aware that running a business is not an easy job. Moreover, establishing it is one of the most difficult things. Hence, they decided to start with a business plan which includes following aspects:
business after they finish their respective study. They are aware that running a business is not an easy job. Moreover, establishing it is one of the most difficult things. Hence, they decided to start with a business plan which includes following aspects:
What is the name of business?
Description of Business
What will business do?
Form of Business Ownership
What form of business ownership (sole proprietorship, partnership, or corporation) will this business take? Why?
Briefly describe ideal customer. What are they like in terms of age, income level, and so on?
Why will customers choose to buy from this business, instead of competitors?
All businesses have to deal with ethical issues. One way to address these issues is by a code of ethics. List three core (unchanging) principles that this business will follow.
A business shows social responsibility by respecting all of its stakeholders. What steps will you take to make business socially responsible?
Do you think that this business can sell product in another country? If so, in what countries, and why? What challenges will the business face?
Provide a brief mission statement for the business
Consider the goals for the business. What are three business goals for the first year? What are two intermediate to long-term goals?
A basic SWOT analysis for the business, listing its main strengths, weaknesses, opportunities, and threats.
Who will manage the business?
How will the "team" fits together with the help of a simple organizational chart for the business. The organizational chart indicates who will work for each manager as well as each person's job title.
What can be a "corporate culture" of this business? What types of employee behaviours, such as organizational citizenship, this business can expect?
What is the philosophy on leadership? How manager will manage employees day-to-day?
Looking back at your organizational chart, briefly what can be a job description for each team member?
Next, a job specification for each job, the skills and other credentials and qualifications needed to perform the job effectively
What sort of training, if any, will the employees need once they are hired? How can this training be imparted?
What wages or salaries will business offer for each job? Why that pay rate?
What incentives will motivate the workforce?
What kind of IT resources will this business require?
How can this information technology be used to keep track of customers and potential customers?
Cost of Doing Business
What are the costs of doing business? Equipment, supplies, salaries, rent, utilities, and insurance are just some of these expenses. What will be an estimate cost to do business for one year for each cost category?
Costs can be:
· Salaries and wages
· Supplies: Technological, Equipment, and Furniture (computers, software, copy machine, desks, chairs, etc.), other
· Advertising and other
· Utilities: Heat, Electricity etc
· Telephone and Internet
· Others (specify)
How much will the business charge for the product? How many products do you believe that the business can sell in one year (or how many customers this business can attract)? Multiply the price that business will charge by the estimate number of products that it can sell or the estimated amount each customer will spend for an estimate of revenues for one year?
Income Statement and Balance Sheet
An estimated balance sheet and an income statement (profit-and-loss statement) for the business.
What does it look like when you walk through the door?
Raw Materials and Supplies
Explain what types of raw materials and supplies will it need to run the business. How will the business produce its good or service? What equipment is needed? What hours of operation?
Steps required take to ensure that the quality of the product or service stays at a high level? Who will be responsible for maintaining the quality of the product or service (or both)?
The target market in terms of age, education level, income, and other demographic variables.
Product Features and Benefits
What can be the characteristics and benefits of the business product?
How will this product stand out in the crowd?
What pricing strategy will business choose for its product, and why?
Place (Distribution) Issues
Where will customers find this product or service? That is, what issues of the distribution mix should business consider?
How will the business advertise to its target market? Why have these forms of advertisement?
What other methods of promotion will the business use, and why?
How much money will it need to get this business started?
How will this business get financed? For example, bank loan? Borrow from friends? Sell stocks or bonds at the outset, or as the business grows?
The executive summary should be brief and should cover the following points:
- The name of the business
- Its location
- The mission of the business
- The product or service offered
- Who are the ideal customers
- How the product or business will stand out in the crowd
- Who the owners of the business are and what experience they have
- An overview of the future prospects for the business and industry
Please help James and his friends to come up with an effective and efficient business plan.
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