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(LUSAKATIMES) Writing a Winning Business Plan—Ten Tips

Writing a Winning Business Plan—Ten Tips
Tuesday, March 29, 2011, 9:56
By Wesley Ngwenya

Tip #1: Excellent Executive Summary

An Executive Summary can be a combination of both the background and introduction. You must write an effective and compelling Executive Summary. It will ensure that you and whomever reads your plan can instantly grasp what your overall projected business picture will look like. This is an overview. It addresses the who, what, where, when, why and how. It must be strong and fabulous.

Tip #2: Assess Your Skills, Abilities and Experience

It is very important to know what your skills, abilities and hobbies are. Your business is likely to be successful if you can transform these skills into ventures that can earn you money. This helps you focus on your strengths and not weaknesses. In your business plan, you need to clearly outline what your skills are and what other partners are also bringing whether it is in the form of skill or experience. Address the three Es. These are experience, expertise and examples. What is your experience in doing this kind of business? What exactly is your expertise and how will you be tapping into the expertise of others? Do you have any successful examples of how you the best person to run this business venture?

Tip #3: Realize the Risk of Business

Getting involved into business is also risk business. Remember that your business will need your undivided attention. This means you will risk money, you will risk time, you will risk personal resources, and you will risk your energy. Remember there is no sweet before you sweat. You clearly need to determine how you will ensure that your vision is sustained and your morale is high as you get into writing abusiness plan and implementing it.

Tip #4: Know your Competitors

Know your competitors by name. Where they are located, who are their managers, the varieties of products they offer, their prices, their discounts, their strengths, their weaknesses, and any other relevant information. Research, research and do more research!

Tip #5: Know your Customers

Know what kind of people are going to buy your product and service. Are you going to get the same customers as those of your competitors? Or are you entirely creating a new customer base? Do you know the demographics of your customers—their age, income, where they live, lifestyle, etc? I am often disappointed when I help clients writing business plans because they seem never to have a target customer base in mind. I often encourage them to have a target market and design their products to meet the needs of that market.

Tip #6: Have a Marketing Strategy

It is important to develop a step-by-step plan on how you are going to enter the market. Put up a plan on how you are going to compete favorably on the market. Are you going to be price-driven or service-driven? Marketing strategy is the pillar of thebusiness plan . Many small businesses in Zambia have failed because our entrepreneurs lack the skills of marketing and the spirit of resilience.

Tip #7: Have a Start-Up Budget

Ensure that you have put aside a specific amount of money for the business. Whether this money is borrowed or is from your pocket. The start-up budget should clearly be reflected in thebusiness plan.

Tip #8: Put up a Strong Management Team

The people that are going to run your business are very important. They are like builders. The blueprint is already done and all the materials are already gathered. Now the huge task to making all these materials transformed into a lovely building remains on the shoulders of the builders. The management team needs to know what to do every time. Ensure that your management team knows what your expectations are. Give them goals to meet. Do not tolerate any slackers.

Tip #9: Do a Cash-flow Analysis

This is perhaps the most important part of your business plan. If you are borrowing money or looking for potential investors or business partners, this is where they will first look at. A cash-flow analysis determines what your revenues will be, what your costs will be and what profits you will be making over a predetermined period. Cash-flows are the blueprints of thebusiness plan.

Tip #10: Utilize Professional Services

In order to come up with a compelling business plan it is important that you use professional help. Consult a professional business plan writer, a banker and a lawyer so that they can help you put all the loose ends together. It will cost you but it is worth every Kwacha spent. Remember cheap is expensive.
This weekend 2nd April, 2011 we are hosting a workshop on “Creating Investment Opportunities for Entrepreneurs”. This is a great opportunity for those in Lusaka to network with other businesspeople. During this time, I will be helping those who would like to write abusiness plan in order to raise capital. My other colleagues will also be sharing on other topics. Feel free to contact me for more information. Wes_ngwenya AT yahoo DOT com

Labels: BUSINESS PROPOSALS, ENTREPRENEURS

posted by MrK @ 3:19 PM