Ready to Rumble
Components of a Business Plan: Step-by-Step Guidance
So you articulate what you’re trying to create. Here are questions that will help you clarify your vision:
- Who is the customer?
- What business are you in?
- What do you sell (product / service)?
- What is your plan for growth?
- What is your primary competitive advantage?
Description of your company and product or service
Description of how your product or service is different
Market analysis that discusses the market you’re trying to enter, competitors, where you fit and what type of market share you believe you can secure
To include the experience of key team members and previous successes
How you plan to market the product or service?
Analysis of your company’s strengths, weaknesses, opportunities, and threat, which will show you’re realistic and have considered opportunities and challenges
So you understand what your needs are now and in the future (a cash flow statement also can help you consider how cash flow could impact growth)
Funding requirements, balance sheet, sales forecasts, business ratios and break-even analysis
Summary / conclusion that wraps everything together (this part can also executive summary at the beginning)
Promotion is a very good activity to ensure your brand is well known by your target market. You can start by having online marketing, for example, Facebook (FB) fan page and post about your company, product or services.
This is because most of the online marketing is free-of-charge and you can respond to your customer inquiries fast. Advertising can give a huge impact on your business and make your brand more establish.
Setting The Selling Price
Calculate your total cost before deciding how much you want to sell the product. If you’re manufacturing a pen at RM1.50 and decide to get 80% profit out of the total cost, you may want to sell it for RM2.70 (RM1.50+80% – excluding SST).
If your total cost production is very low, you can choose price skimming which sets a relatively high price for a product or service at first, then lowers the price over time.