Buisness plan

Essay by shab March 2006

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Starting your Business


Firstly, it is essential to have a plan, which can then be worked against. The idea of a small electronic store has already been decided, but it must be noted that ongoing business success usually means that new ideas must be produced on a continuing basis. This is particularly relevant to the type of business you hope to start up, as the electrical market is always changing and technology is very progressive. So you must ensure that this is the market in which you wish to enter. It is always cheaper to examine an idea thoroughly in advance than to incur the expenses of a business failure.

A business plan will give you a written summary of what you hope to achieve and how you intend to reach destined goals. It can also help to plan resources and finance. A business plan can be shown to a lender or investor to prove your capability as a business manager and assess your financial proposal.

It will give them insight into whether your business will be successful or not, and a plan can verify how sincere you are in starting up the new business. It shows that you have committed your plans to paper, which can be added to, therefore the ideas are noted and scenarios can be predicted. This also encourages practicality as the plans show the constraints and limits, so you are aware of the restrictions (e.g. money).

The plan should note the intended consumer and further development of this would allow you to identify your customers so the correct pricing strategy and advertising can be thought out. It can also lead to a discovery of competition advantages.

The right consumer

You need to be aware of the market that will pose less risk and are...