Should I write my own business plan?

Kimala Bennett, Guest Writer

Preparing a good business plan is an art. In this section, you will learn how to channel the artist in you to do just that. Depending on the type of business you intend to start and who you intend to submit it to, you may need a much more comprehensive plan. In such cases, we recommend that you employ the services of a professional, or at least someone who has a fair amount of experience in business-plan preparation.

A business plan is a document which outlines your entire business strategy. It should answer any question about your business, for example, What does your business do? Who are your customers? Where do you operate? What are your business goals? In short, anyone who reads your business plan should understand your entire business operation at a glance.

Plan Format

A typical business plan follows the follwing format:

1. Executive summary: This is usually the very first section of the business plan, but ironically, it needs to be written last because the executive summary is just that - a summary of your business.

2. Mission statement: This section will give you some insight into the purpose for your company. What is your main goal? What do you want your company to represent? A good rule of thumb is to highlight your commitment to your customers and your staff.

3. Industry analysis and trends: This gives an overview of the market/industry in which you intend to start your business.

4. SWOT analysis: Preparing a SWOT analysis - 'Strengths, weaknesses, opportunities, and threats' - is another good way to determine the feasibility of your business.

5. Target market: The next thing you will need to do is identify your target market, because in order for your business to succeed, you will need to have a solid understanding of your future customer.

6. Competition: In business, knowing your competition is just as important as knowing your customers. You need to understand who you are up against if you are going to be able to compete successfully with them.

7. Business strategy: Next, you will have to decide how you intend to position your business. What type of products/services will you offer? Are you going large scale or small? Do you want to be high-tech or home-made?

8. Marketing strategy: It is not enough to have a good product/service. If you want someone to invest in it, they will have to see that you seriously considered how to sell it. And that is where your marketing strategy will come into play. Marketing is about getting your message out to your potential customers. But what do you want your message to be? At whom do you want it directed?

9. Operations: In this section, we take a look at how you actually intend to run your business. You won't be able to include all the mundane details in your business plan, but we would still urge you to think everything through.

10. Description of management team: A business is only as good as its people. Remember this when you are selecting your team. Choose persons who not only have a strong background in the field, but who also know how to motivate others and work as a team.

11. Projected financial statements: In this section, you will need to estimate your cash flow and break-even point. Your cash flow is your projection of how money will move in and out of your business.

DO SOME RESEARCH

If you want to get a better feel of the business plan process before deciding it is something you want to tackle yourself, do some research online.

There are several sites that will show you sample plans from different types of businesses, but be careful about trying to use just any available templates. You want to be sure that your business plan is customised for your business. Most investors and financial institutions can spot an overused template from a mile away!

OPERATING BASE

Now you are ready to set up office! Have you decided where? Choosing your office is a very important step in the start-up process. There are many different factors that you should think about when you are deciding where to set up your office. For some businesses, setting up at home might be the perfect solution, while for others, a separate office location is a must. In that case, you will then have to decide whether you want to rent, lease, or purchase your office space.

Here are a few things you should keep in mind when looking to rent office space:

1. Cost: Can you afford the monthly rent? Are there any additional fees? Will you need to pay additional insurance? Are utilities included?

2. Layout and space: Is there a meeting room? Do you have adequate storage? Will the layout work for your business?

3. Parking: Is there adequate parking for you and/or your customers?

4. Security: Is there adequate security and lighting? Will you and your customers be safe after work hours?

5. Zoning restrictions: Are there any restrictions as to the type of business you will be able to operate from that location?

6. Wiring: Is the place already wired for lighting/equipment, or will that be at an additional cost?

If you are opening a retail business, a good idea is to find out the history of other retailers in that location. Was business good? Were there any parking or security issues? Finding out these things up front will save you the hassle in the long run.

If you are going into manufacturing and will be receiving high volumes of shipments, ensure that your deliveries can be made and stored without any problems.

Kimala Bennett is a film director/entrepreneur and author of "Starting a Business in Jamaica".jamaicabusinesslab@gmail.com