Significance of a Business Plan

As others say that putting up a business is EASY. The fact is, it is not. In an academical view, there are lots of things needed to learn to build an effective business. The framework of a business is the BUSINESS PLAN. Last academic year, the latter was our major subject which means that our group must submit a consolidated one and must defend it to the panelist for it to be implemented next academic year.

Business Plans are considered the conceptual framework of what you envision in your business. The former consist the purpose of your business, management, marketing, operational, and financial aspects that highly contribute towards the success of a concrete business plan. But it’s not as 123 when building these aspects because you’ll need to have the following:

• Patience – since you are going to conduct research about the products and as well as the market, you’ll have to pack a lot of patience on your way. I’d been through this when my group were starting to get mad and over thinking about the possibilities that might happen and will make the research to a waste. Nevertheless, PATIENCE is a VIRTUE we must always apply this because this is a good sign that we will make it through.
• Passion – this is one of the most important factors that drives an entrepreneur towards success. Knowing that we love what we do makes us invincible. And regardless of how tired we are in conducting researches if we have this, we will feel nothing but hunger and drive to achieve what we want.
• Motivation – we need this most of the time especially when are already in the den of pessimism. Sometimes, we turn out to be a negative thinker because we over think things without having enough knowledge of what will happen in the future. And to overcome pessimism, a lot of motivation is needed to think straight and minimize realistic situations.
• Knowledge – self-knowledge is greatly essential in order to synchronize all the gathered information with the latter. Having self-knowledge minimize the risk of failure because know what you’re doing. Easily understanding and enhancing the mind of the entrepreneurs to innovate.

These factors must be incorporated to future entrepreneurs’ behavior for them to have a high percentage of being successful in making their business plans. In fulfilling a concrete business plan, an entrepreneur must do the following in chronological order:

1. Choose the products which will be offered to the market (but it doesn’t mean that it will be the final product/s because final products must depend on the target market’s need)
2. Choose at least three (3) target markets to conduct a survey because this will help entrepreneurs to weight factors and analyze which market is higher. (I prefer to use the Factor Rating Method to analyze the location).
3. Once target markets are chosen, entrepreneurs must prepare a survey questionnaire about the product and other factors (factors that they want to consider in choosing a location).
4. Always remember that surveys are the most important medium in having a consistent and reliable information to achieve accurate results. Survey results reflects to what products and prices must be offered in a particular target market to achieve high profit. Survey results affect the whole business plan’s aspects.

Above, are the only basic things for an aspiring entrepreneur must know for them to have a clear idea what are the significant things needed to have an effective business plan. The technical parts of a business plan will be discussed in my future posts. I hope you learned something. Apply it. And I’m telling you, BUSINESS PLAN establishment is WORTH IT.

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