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Steps to Write Business Plan

Business plan means what will you do in business? When will you start your business? How much will you invest your own capital in business? What is estimated marketing of product of your business? Main need of making business plan is to get loan for business and decrease loss. Following are main steps for making business plan.

1st Step : Make a list of different elements of business. 

a) Total amount of capital

b) Total no. or products

c) Types of products

d) Different risks

f) Level of competition

e) Expected customers


2nd Step : Explain above elements in detail 

For example, if you are saying $ 10,00,000 investment of capital. What type of capital are you investing. Whether you have collected this from limited partnership or whether you are getting it from public issue of shares.

3rd Step : Explain the Skills of Your Employees

Success of business depends on employees. In your business plan, you should explain your employees skills and experience.

4th Step : Explain Estimated Cost of Project 

What will be the cost of project? Will you do trading business or manufacturing business or construction business. Make the list with deep analysis of cost and benefit of project.

5th Step : Explain who are your consumer

In this section of business plan, you have to explain who are your consumer. What may be their age, what are their hobbies. Whether your products will satisfy their needs.

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Objective of Business Environment

Following are main objectives of business environment:
1. Knowledge of Information 
By studying the business environment, we can know the changes of business. This information is very useful for our business. Every businessman should aware current environment of business. With this, he can think the future of his business in such environment. 
2. Basis of Decisions 
One of main objective of the study of business environment that it can provide all the information which is needed for taking good decisions. Suppose, you completed your internal business environment study. With this study, you can take decision relating to purchase, sale, salary and price because you know your competitor, you know your suppliers and you know your customers. 
3. Helpful in making of Policies 
For making good business policies, we need to know and scan business through business environment. 
4. Technological Planning 
Today, technology is changing very fastly. 3 years ago, I have to search software for downloading …

Limitation of Business Environment Analysis

Following are main limitation of business environment analysis:

1. Unexpected and Unanticipated Events 

We can not tell unexpected and unanticipated events in business environment analysis. Sometime, business has to face unexpected happenings. So, there will no benefit of business environment in these cases.

2. No sufficient Guarantee

Business environment analyst does not give any guarantee whether all events will happen as per estimation in business environment.

3. Uncritical Faith 

Sometime data may be incorrect. So, decisions on basis of these analysis may be risky for business.

4. To much information

Sometime too much information relating to business environment analysis will create the doubt in businessmen.

Technological Environment

Definition of Technological Environment :-


“Technological Environment means the development in the field of technology which affects business by new inventions of productions and other improvements in techniques to perform the business
 work. "

Introduction to Business Environment

Business environment may be defined as the set of external and internal factors which affects the decisions of business. We can divide business environment into two parts

A. The Micro Environment of Business

These are powers which are deeply related with company and company can control these type of environment by improving its capacity and efficiency.

1. Suppliers

Suppliers are the persons who supply raw material to company.

2. Customers

Customers are the persons who buy goods from company.

3. Market Intermediaries

Market intermediaries are those person who helps company to sell its products.

4. Financial Intermediaries

Financial intermediaries are those institutions who provide loan, credit and advance to company.

5. Competitors

Competitors are those who also sell same product of company.

6. Public

Public is those group of people who can buy or who can show their interest to buy the products of company.

B. The Macro Environment of Business

Macro environment of business means all exte…