Business plan is a written document that introduces the concept of new business, which includes strategies, objectives, marketing, sales and financial forecasts. It helps us to clarify the business ideas and spot the potential problems that we will be facing while establishing the business. Crafting a business plan provides with an opportunity to test whether our idea holds any promise of success or not(Peterson, Jaret, & Schenek). It help us evaluate the feasibility of the idea in an objective way A good business plan guides us through each stage of initiating and managing the business. It is essential component especially for startups as it helps to raise funds from the investors. To make our business plan investor ready, we should be able to see our plan from the eyes of the investor. According to Timmons Model, a successful venture depends upon opportunities, resources and team and the ability to maintain a balance between these. (Nayab, 2013). An opportunity is the foundation of the business plan, whereas the amount of resources and the team member are decided in the business plan. Good management require us to set specific objectives and then follow-up.(Berry, 2006) So business plan act as the baseline against which we can measure the performance of the company.
Many of us are fascinated by the thought of starting and growing our own business. Some of the popular reasons to start a business include having a unique business idea, designing a flexible career, working for financial independence and investing in yourself. Starting a business involves planning and making key decisions essential for the business. For this, lets outline steps for starting a business.
Outline for starting a Business
- Determine your idea
We cannot start a business without an idea. We have dozens of idea popping into our head time and again but every idea does not have the capability to turn into a business. So for an idea to be worthy it should be able to solve a problem existing in the society and we should have the passion and determination to pursue it.(Deeb, 2013)
- Research your market
Before we start our business, we should conduct a preliminary market research for our start up. The research will include: how large is the market, how many competitors in the industry, will the investors invest in the idea and so on.
- Create a Business Plan
After we have answered all the queries we has about our business, its time to build a concrete business plan. The business plan includes executive summary, description of the company, market analysis, description of product/service, sales & marketing strategy, financial projection and other relevant information (Patel, 2014)
- Gather needed resources
Regardless of the size of the business, we will need a few essentials to start a business. For, this we should create a list of all the resources, be it no of employees, the office space or the equipment in office
- Funding for business
The business plan will help us to know how much funding is required to establish our business. If we are self funding then we do not have to look for investors. Else we can opt for angel investors, venture capitalist or bank loans.
Some of the entrepreneurial themes that I will follow and apply are:
- Be a doer:
People usually think about what they want to do or accomplish but do not take any initiative to achieve their goal. Successful people always strive for action and are always willing to take a step ahead.
- Don’t be e usually afraid of mistakes
In order to grow we have to learn. We should never be afraid to make mistakes, because mistakes show that we are learning something. We can overcome mistake by trying to learn from the mistake
- Never forget the importance of networking
In a competitive business world, it’s not about what you know, but who you know.(Schurman, 2016). So networking is very important in entrepreneurship.
- Do not listen to the negativity of Nay-Sayers
We live in a very selfish world, where people are always trying to pull us down. Whenever we are making a decision for us, we should follow our own conviction otherwise we will be never able to make it.
Process For Recognizing Business Opportunity
We have been hearing the saying that “opportunity does not knock twice”. Everybody will surely grab an opportunity and make the best out of it. But the main problem lies in recognizing an opportunity. Opportunity recognition is the first step of the entrepreneurial process.(Rosen, 2014). Let’s discuss the process for recognizing the business opportunity.(Daum, 2014)
- It sparks idea
A good idea can be an opportunity but an opportunity is the source of many ideas. The more we try to utilize the opportunity the more ideas will flourish to make a winning plan.
- It fits core values
A good opportunity will provide an entrepreneur with the chance of growth but it should match with their core values. If it does not fit, then the opportunity is not meant for us.
- It provides energy`
If we find ourselves tired at of attending the meetings for our idea then, the opportunity is not meant for us. A great opportunity should make an entrepreneur make feel alert and energetic.
- It carries its own momentum
If the opportunity requires an entrepreneur to invest more effort than they are willing to then the enthusiasm for the idea will eventually die out.
The business that we have decided to start and develop is “Helping Hands Co.”. My business will focus on the providing helpers for domestic work, plumbers, electrician, carpenters, and welder.
Market and Competitive Analysis
We have often been hearing about the demands of the helpers for domestic work. Now days every members of the house is involved in jobs so the demand for the helpers is increasing than ever. Similarly with the increasing number of migrants for the position of electrician, plumbers in the gulf country has made a shortage of such skills in our own country. Currently there are 2 organizations that provide such kind of service so technically they will be the competitor of my business.
Our fellow Nepalese brother and sister have to leave their family behind and go to foreign land in search of better job opportunities. In order to discourage that, I would like to train those people and provide similar kind employment opportunities here. If a couple is applying for the job then they will be provided accommodation too. The employees will be hired and will be operated on a call basis. They will be provided basic salary and the compensation depending on the number of customer they serve.
As the marketing is concerned, we are planning to target the people of the urban areas who are more in need of these kinds of services. In the initial stage, we will advertise through social Medias and advertisement in newspaper. Various schemes will be introduced in the later stages, once the business starts blooming.
The business idea that we are proposing required an Initial budget of 70 lakhs as training and accommodation should be provided to them. In addition to this, the equipment should be bought for delivering the service. I along with my partner will both invest 20 lakhs each and for the rest amount of capital, we will search for a investor.
Berry, T. (2006, March 13). 15 reasons you need a business plan. Entrepreneur .
Daum, K. (2014, December 10). 5 Ways to Recognize a Great Opportunity. Inc.
Deeb, G. (2013, December 30). How to Start a Business in 8 key Steps. Forbes .
Nayab, N. (2013, April 30). Understanding the Timmons Model of the Entrepreneurship. (J. Scheid, Ed.) bright Hub .
Patel, S. (2014, September 15). 7 Key Steps Toward Starting Your Own Business. Entrepreneur .
Peterson, S. D., Jaret, P. E., & Schenek, B. F. (n.d.). Why is a business plan important? Retrieved August 13, 2017, from Dummies: a wiley brand: http://www.dummies.com/business/start-a-business/business-plans/why-is-a-business-plan-important/
Rosen, A. (2014, May 29). Recognizing Opportunity is the First Step to an Entrepreneurial Mindset. Entrepreneur .
Schurman, D. (2016, November 16). 5 Themes Of Success: Straight From The Mouths Of Entrepreneurs. Forbes .