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Moses
Student
Watamu, Kilifi County
1
Question
Updated
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How do i build a business plan?
How do i build a business plan?
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1 answer
Sarah Cockrell, MBA, MSCM
Organizational Development
50
Answers
Atlanta, Georgia
Updated
Sarah’s Answer
Hello! A good business plan starts with having a clear idea of what you want your business to do and who it will serve. You do not need to have everything figured out before you begin, but you should be able to explain the problem your business will solve or the need it will meet.
Here are some practical steps to get started:
1. Define your business idea. What product or service will you offer? What problem does it solve? Who would be interested in buying it?
2. Do some market research. Learn about the people who might become your customers. What do they need or want? Look at businesses that already offer something similar. Pay attention to their prices, products, strengths, and areas where customers may still have unmet needs
3. Identify what makes your business different. Based on your research, determine what gap you could fill. Your business does not necessarily have to offer something that has never existed before. You might provide better service, reach a different audience, offer a more convenient option, or solve an existing problem in a new way.
4. Describe how the business will work. Think through the practical details. Where will you operate? Will the business be online, in person, or both? What supplies, equipment, technology, or people will you need?
5. Create a marketing plan. Decide how potential customers will learn about your business. This could include social media, a website, community outreach, advertising, referrals, partnerships, or other methods that make sense for your audience.
6. Develop a basic financial plan. Estimate how much money you will need to start the business and your ongoing expenses. Determine what you will charge for your product or service and approximately how much you would need to sell to cover your costs and eventually make a profit.
7. Set goals and next steps. Identify a few realistic goals for your first three months, six months, and year. Then turn those goals into specific actions you can begin working on.
Once you have worked through these questions, you can organize the information into a formal business plan. Remember that a business plan is not something you write once and never change. As you learn more about your customers, competitors, costs, and opportunities, you can continue improving your plan.
Most importantly, start by researching and testing. A great idea becomes much stronger when you have evidence that people actually need or want what you plan to offer.
Keep in mind that you can find a mentor through local nonprofits that can walk you through each of these steps.
Here are some practical steps to get started:
1. Define your business idea. What product or service will you offer? What problem does it solve? Who would be interested in buying it?
2. Do some market research. Learn about the people who might become your customers. What do they need or want? Look at businesses that already offer something similar. Pay attention to their prices, products, strengths, and areas where customers may still have unmet needs
3. Identify what makes your business different. Based on your research, determine what gap you could fill. Your business does not necessarily have to offer something that has never existed before. You might provide better service, reach a different audience, offer a more convenient option, or solve an existing problem in a new way.
4. Describe how the business will work. Think through the practical details. Where will you operate? Will the business be online, in person, or both? What supplies, equipment, technology, or people will you need?
5. Create a marketing plan. Decide how potential customers will learn about your business. This could include social media, a website, community outreach, advertising, referrals, partnerships, or other methods that make sense for your audience.
6. Develop a basic financial plan. Estimate how much money you will need to start the business and your ongoing expenses. Determine what you will charge for your product or service and approximately how much you would need to sell to cover your costs and eventually make a profit.
7. Set goals and next steps. Identify a few realistic goals for your first three months, six months, and year. Then turn those goals into specific actions you can begin working on.
Once you have worked through these questions, you can organize the information into a formal business plan. Remember that a business plan is not something you write once and never change. As you learn more about your customers, competitors, costs, and opportunities, you can continue improving your plan.
Most importantly, start by researching and testing. A great idea becomes much stronger when you have evidence that people actually need or want what you plan to offer.
Keep in mind that you can find a mentor through local nonprofits that can walk you through each of these steps.