While many passionately work for others, you can own your business. See how you can run your own business successfully. (2)

in #business5 years ago

In the first part, we looked at the business plan, what it entails, the benefits of writing a business plan. You can view it here.

The components of a good business plan includes

  • executive summary
  • mission statement
  • SWOT analysis
  • competitor analysis
  • market analysis and plan
  • operations plan
  • management summary
  • financial plan
  • milestones Source

This components will be examined one after the other.
business-2987962_960_720.jpg Source

Executive summary

The executive summary is like an introduction. It is a summary of what is present in the business plan. It prepares the reader for the remaining contents.

A good executive plan must

  • Clear
  • Concise
  • Captivate the reader attention

The executive summary is the most important part of a business plan. It must be clear and concise so the reader can grasp what is there in matter of minutes.

A good executive summary must contain the

  • business opportunity
  • how you intend to exploit that opportunity
  • the target market
  • the competition
  • the financial analysis
  • the implementation plan
  • manpower Source

Mission statement

The mission statement is a short sentence/statement that tells the world your business purpose. At a glance, people can understand why the business exist, what products/services it offers, the target market, uniqueness of the product/service.

In three questions, you can compose a mission statement.

  • What your business intend to do
  • How does your business intend to do it
  • Why does your business do what it does
    When you answer these 3 questions effectively, you can compose a mission statement out of it. The mission statement must include the

Having a mission statement have some advantages

  • Direction- It provides direction to be followed through the course of the business. Without a mission statement providing direction, there may be struggles for the business to move forward.
  • Purpose- It defines the clear purpose of the business. This tells potential investors, stakeholders what they intend to gain from investing in the business. Source

SWOT analysis

SWOT stands for Strength, Weakness, Opportunity, and Threats.

The strengths is the uniqueness of the business. What gives the business an edge over other similar ones, why will consumers pay for the products/services.
The weakness is the features that make the business inferior to other similar business.
The weak points in the environment/buying pattern that the business can exploit to its own advantage.
Threats are things in the environment that can create problem to the business. They threaten the existence of the business.

Understanding the weakness of your business, the threats can be well managed or eliminated.
In composing a SWOT analysis, you can answer this questions

Strengths

  • What are your business advantages
  • What do you do better than everyone else

Weakness

  • What can you improve in your business
  • What are the grey areas you should avoid in your business

Opportunities

  • What are the opportunities you have spotted
  • What are the trends you wish to exploit
    This opportunities can be as a result of technological advances or Government policy change.

Threats

  • What are the obstacles you face
  • Is there a regular change in policies, standards, regulations that may affect your business negatively.
    Answering this questions will make you compose a good SWOT analysis Source

Stay tuned for the next part of While many passionately work for others, you can own your business. See how you can run your own business successfully.


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Hello! I find your post valuable for the wafrica community! Thanks for the great post! @wafrica is now following you! ALWAYs follow @wafrica and use the wafrica tag!

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I love the idea of being your own boss. I hope the information given would help revive dying businesses especially in Nigeria and also help those venturing into business soon

Being your own boss is the best thing you can be in an unstable economy , thanks for this info.

Wow you are good writer as well man :D keep it up and make many post about like that :))

Very interesting information, thanks for sharing them with us @zoneboy.

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