How to plan your business? An Easy but Useful Guide.

Before you start your business. Its always good to plan our your business. Like the saying goes: “if you fail to plan, you plan to fail”. Of course, as true as this might sound, its easier said than done. At times, you simply need to get started before getting to learn things as you go along.

Planning a business is not so much about the execution, nor the process of hiring, creating a good product or a service, manufacturing or production. Yes. Those things are important but more importantly, its about how much money you can make going into this venture and if its worth the effort. If a business is going to cause you to lose money, you might as well not go into it in the first place.

Here are a few tips to get you started:

  1. Write down your unique business proposition – This is what you provide that is unique from your competitors. Its what is going to make you stand out from the rest.
  2. What’s the cost? – How much capital is required? Set up cost, Manpower, Rental, Franchise Fees and Running cost. – This will keep you aware of your total lost in the event your business flops.
  3. What is your expected burn rate? – How much money are you going to spend moving forward. How much money are you going to spend on a month estimation. This is also equal to your running cost.
  4. How long do you intend to keep your business running? – How long are you going to go before giving up? Not every business is worth the continued dedication. Especially in the ever changing landscape of consumer preferences, sometimes, giving up a business might just be a wise business choice. A recommended timeframe to try out your business will be 6 months to 1 year.
  5. Your business model and go-to market strategy – Are you going retail? Doing online? Selling on Marketplaces or opening your own store? how are you going to acquire your customers or make yourself known?

Simply focusing on these 5 points will help you stay focus and keep your business planning process short. Don’t bother writing too long an essay even your kids won’t be interested to look back upon. Answer this 5 points and keep it in storage or print it out and keep referring back so that you know that you are on track.

At times, you might need sometime to figure certain things out. Then go ahead and find it or do your research, till you have these a complete comprehension of this 5 questions, you should never put a dime into your business or get an investor to invest.

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  1. Pingback: Business is a Game of Statistics. Here's how to wield it.

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