Geography & History Notes | KCSE, NECTA, ZIMSEC & GCSE

HERE ARE 7 STEPS INVOLVED IN PREPARING A BUSINESS PLAN  1. Selecting a business opportunity or type of business to engage in, for instance, trading business, service provision business, manufacturing, agro business, e.t.c. 2. Conducting market survey for a selected type of business. This involves gathering information from respondents by communicating with them. 3. Collecting all the relevant data concerning the different aspects of the business and establish the costs of different items like machinery and equipment, raw materials, transport, e.t.c. 4. Drafting the business plan. 5. Discussing the drafted business plan with technical/knowledgeable or experienced people in the similar business. 6. Making a final business plan. 7. Finalizing the business plan process by preparing an action plan for the implementation of the planned activities.

 The following are some of the reasons for writing a business plan; 1. To test the feasibility of the business idea. It enables the entrepreneur to establish whether the idea for starting the business is possible or not. 2. To give the business the best possible chances of success. It encourages the entrepreneur to pay attention to both the broad operational and financial objectives of the business and details such as budgeting and market planning. 3. To secure funding such as loans. The business plan enables the entrepreneur a much better chance of getting the money he/she needs to continue operating. 4. To attract investors. Investors normally need a well-written document they can take away and study before they make any investment commitment. 5. To make business planning manageable and effective. It helps an entrepreneur to see what goals have been accomplished, what changes need to be made, or what new directions the business should take.

  In the business plan preparation, the entrepreneur is expected to have broken down all the contents of the plan under the following sub headings; 1. General description of the business. 2. Statement of mission, goals and objectives. 3. The Marketing plan 4. The Production plan 5. The Financial plan 6. The Organisational plan (Administrative/Management plan) 7. The Action plan General description of the business This involves giving summarized information about the business. Therefore general description of the business involves establishing the name, address and location of the business, the type of business being planned, the needs of the market it seeks to fulfill, a summary of how the intended business will be different from other businesses (uniqueness) as well as making an analysis of the strengths, weaknesses, opportunities and threats (SWOT) that the business is likely to face. Statement of mission, goals and objectives These are brief statements indicating why the busines...