To ensure the success of your business, plan ahead. PHOTO | FILE
What you need to know:
Proper planning and preparation will ensure longevity of your venture.
As we head towards the New Year, a lot of new businesses are formed. However, without proper planning, many are not likely to perform optimally.
Here is a check list for startups in planning their business for longevity and survival.
1. Write your business plan. The plan sets out the goals of the business and is the foundational document to refer to at all times. A lot of detail should go into drafting it.
Start with providing a summary description of the intended business. This is important for marketing purposes.
I was once a member of a networking club where each member was given two minutes to present their business to the rest of the club.
Not many people were able to do this in the given two minutes because most did not have a clear description of their business and the products or services they provided.
Not many had a clear definition of their target customers. However, writing down a brief description of your business will enable you present your business in an orderly manner.
2. Find a good location for the business. In some cases, such as in the case of consultancy or online shops, there is no need for a physical location.
However for other businesses, location determines how successful the venture will be. This is especially for businesses in the service sector. It is best to be nearer your target clients.
3. Your management structure should be set up beforehand. Even if you are running your own businesses, it is wise to incorporate a board of advisors to whom the business is accountable.
A separation of ownership from management is the best practice for good governance. The board remains accountable to the owner.
An independent board offers a range of expert advice and does not have to be expensive. Family and friends with different specialties can offer such services.
4. Target your customers beforehand and properly define your product/service. For this a market analysis is needed. This will be beneficial in the long term as you will not waste time and resources outside defined parameters.
5. Your business needs a vision and mission. Vision is simply what prompted you to start the business and mission is why your business exists – its purpose.
Most business experts’ advice that your vision and mission should not be about revenue but should capture your core competencies, interests and passion. You are likely to fail if you get into business you have no capacity or passion for.
6. Do your SWOT analysis so as to capitalise on your strengths and deal with your weaknesses. Take advantage of new opportunities like new laws, changing customer trends and mitigate risks.
7. Set up systems and operations in terms of ICT infrastructure, human resources, marketing and other pillars.
8. Consider finances. Where are you getting capital from? Who are the suppliers? How much are you costing your services? What is your credit policy?
With proper planning your business is likely to succeed.
