Continuation
- SHORT AND LONG TERM BUSINESS GOALS
Where you are starting from and where you want to get to is the content that you will specify in this part of the plan. Goals can of course always change, but you still have to start with something. This part is where you will also tell how you plan to achieve your goals.
- you start with a small bookstore where you mainly offer stationery, notebooks, textbooks. But you have plans to develop it in stages. The second stage could be to expand the premises and start offering books as well. If the bookstore is located near a university, you can include specialized literature, copying services, etc.;
- you open a family hotel or guest house, where you initially offer only overnight stays, and subsequently expand to offer food;
- you start a business that does not tolerate any large-scale deployment, but you plan to increase the number of manufactured goods - a bakery that expands its assortment over time;
- you start with a learning center, which you later expand with translation services, etc. examples can be many.
- FINANCING
An essential part of your business plan is finances. If you have the necessary savings, you have solved a large part of the problem. In practice, however, a person can have enough savings if he has turned to handicrafts or small businesses. Most ideas will require credit and investors. If you take out a loan, it is good to indicate what part of the funds are personal, if any, and how much - from a loan. Also indicate the source of the loan and the repayment period. The business plan should include numbers, not just general talk. Your loan is a permanent expense that must be accounted for in your accounting. If you have partners, provide information whether they are individuals or other companies, how much is the share of each partner and in what form (the investment may not be monetary.
Try to make cost and profit projections. This part of the business plan is essential. Regardless of whether you will invest personal funds or resort to credit, indicate the amount of initial funds If the financing is from several sources, indicate the exact amounts from each: BGN 1,500 personal finances plus BGN 5,000 credit from bank A, for period B It should also be noted what exactly the funding will be used for. If the business will be a bakery, the costs must be as detailed as possible: BGN X for raw materials (flour, eggs, yeast, etc.), BGN X for machinery and equipment (oven, counter, showcase, etc.) and so down to the last detail.
Protection of intellectual property - trademark, patent, copyright
As for profit projections, focus on a five-year period. In this way, investors will also get an idea of what they will get for their initial investment. Try to make your predictions realistic and accurate. In Chapter Four, Financing, we will look in more detail at how a financial-economic analysis is done
- DESCRIPTION OF THE PRODUCT
Make a detailed description of what you will be offering. If it is a commodity, you must indicate the main components from which it is composed or the raw materials from which it will be produced, technical characteristics, target group (for whom it is intended), etc.
You will sell clothes - what will they be: only children's/women's or for any gender and age; general ready-to-wear or boutique clothing, imported or domestically produced; what materials will the clothes be made of, will they be seasonal, etc. If it is food, you should be very detailed in the description. For a restaurant, you don't need to list your menu because it's constantly changing, but you need to list, for example, what meat or milk you'll be using, whether it's imported or locally produced, whether there are food allergens and what.
It is an important point to specify the main quality indicators of your product according to user and properties. For example, how functional is what you offer – ie. whether the goods correspond to their main purpose; ergonomic and is it - this refers to comfort and hygiene and. Is it harmless, if it is a children's toy, are the material and paint harmless, if it is a household appliance - how safe is it. You must also indicate the reliability of the goods - here it is important the durability and the life cycle, whether it is suitable for repair and how it is stored. We know, for example, that today's electronic goods are manufactured to be subject to a minimum of repair, ie. if one part breaks, you have to buy a new product.
If you offer a service - for whom it is intended, do you have the necessary qualification to offer it If you are going to translate, it is good to be a licensed translator, if you give lessons in French - to have a teaching qualification. If you offer translations, what type are they - mainly civil documents, fiction or specific technical ones. If you give French lessons, are they mainly for students or also for adults, will you also work with very young children, according to which system will you teach, do you offer, say, business French or just general conversational French.
You offer transport services - do you have all the licenses for this, are your vehicles technically sound, are the service personnel (drivers, technicians) yours and by hiring from another company (if you hire a driver, you are directly responsible for his skills and license ; however, if you enter into a contract with an intermediary company, the responsibility for this is theirs).
- MARKETING AND SALES
Here we will talk about marketing concepts. It is a basic approach, view or guideline for a company's strategic behavior towards the product or service it offers, the ways in which it will distribute its products, potential consumers and the way the company treats society and the environment. Marketing concepts depend on and are applied in specific market situations and are predetermined depending on the state and degree of development of the relevant industrial industry. Historically, five main marketing concepts have developed and substantiated, reflecting different priorities:
- Production concept - oriented towards production - low quality, low prices, mass production; it is aimed at people with low purchasing power; production costs are high and production is mass-produced; the company has a wide domestic market;
- Product - focused on development activity - high quality, high prices, improvement of products, functionality in use; here the consumer has medium and high incomes and makes a choice and comparison between quality and price;
- Commercial or sales - related to placement - the goal is to increase the volume of sales through aggressive techniques, here an incentive is sought to encourage consumers to buy; availability of a sufficient amount of users;
- The traditional (marketing concept) - aimed at the degree of satisfaction of the selected market segment - getting to know the wishes of consumers, the orientation is both towards consumers and towards profit;
- The concept of socially ethical marketing -– this concept maintains the balance between the interests of consumers, the company and society – it aims to satisfy the needs and desires of the individual consumer and make a profit.
The fact that they arose in a certain historical period does not mean that they have ceased to operate. In a certain period a certain concept is dominant, and in another period they are not leading in the market situation.
- ANALYSIS OF THE COMPETITION
Competitive analysis is related to market research. Briefly describe the main firms in the industry that would represent serious competition and give a brief overview of their strengths and weaknesses. Try to get information about the main strategies used by competitors and compare them with yours. The main indicators of competitor analysis are generally:
- relative number of firms offering the same goods or services, here separating local competition from general competition;
- what are your sources of information;
- what are your main advantages - here include elements such as location (parking space, access to the site, presence or absence of rent, etc.);
- advantages of your goods or services compared to those of competitors (for example, your language center has philologist teachers, while others do not, or you offer several levels of training, and competitors - only basic level, etc.);
- compare prices and if you have access to information - costs
- BUSINESS OPERATIONS
In this section you will indicate the location of the premises, whether it is owned or rented. It is good to describe how accessible it is - for example, is there a parking space, is it located in a blue zone, if it is in a big city, how can customers get to you on foot or by bus, is it accessible for people with disabilities. Here you need to consider both current and future needs or long-term commitments to the property.
Describe what equipment you have - if they are opening a bookstore or copy center, here you will indicate the number and type of copiers you will have, possibly a laminating and cutting machine; for a restaurant or cafe, number and types of sinks, stoves, refrigerators, bar equipment, etc. and generally all the inventory you'll have at your disposal. For a hairdressing salon, this will be a chair-sink - supplier, a detailed description of its functions; for a car service - do you have a channel or will you offer a facility with which you will lift the cars). Be careful! here we are talking about a description of the technique and equipment with which you will develop the activity, not a description of the product you offer.
- APPENDIX
In the Appendix, describe what supporting documents you attach to your business plan. They can roughly be:
- Autobiography;
- Your credit history;
- Recommendations and references from previous employers;
- Permits, licenses, patents - if necessary;
- Contracts – with suppliers, with carriers, with banks, etc.;
- Marketing materials, product photos;
- Tables, graphs for forecasts.
© 2023 Iliana Dechkova