BUSINESS PLAN_A GENERAL OVERVIEW
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4.0 DEVELOPING A BUSINESS PLAN
Steps to be followed while preparing a Business
Plan:
Write out what you want to do or what type
of business it is to be.
Write out your purpose in starting this
business.
Write out your vision for the business:
‣ Short Term (0 - 3years)
‣ Medium Term (3 - 5years)
‣ Long Term (more than 5 years).
Write down a list of what resources you
know you need to start your business: e.g. an office, a bank loan etc.
Clearly state any uncertainties you may have, for example, you may be uncertain about the
type of business structure to create - a company or a close corporation etc.
Identify your market.
Identify your competitors.
Attach a cost to each item in (4) and develop your fixed and your start-up costs.
Work out how many months your business may have to survive before its income equals the
expenditure
Give careful thought about how you will make your business known - how you will market
your products or services - and calculate the costs associated with this marketing.
By knowing why, you are preparing this plan, you
can save time and effort by focusing on the
important areas.
Business plans often contain filler information that
is not pertinent. If you need to borrow funds, ask the
lending institution exactly what is required.
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