What is a business plan?
A business plan is basically the blueprint of your business. For example: Imagine that you’re building a house or you do a renovation of a house. After you consider everything, the last day you find out, “Oh, my God! My aircon wire…” or, “My alarm wire is not concealed.” Then you have to work on concealing the wire again.
So, when you build a house or do a renovation, make sure you plan out nicely which one you do first, which one you do second in order to get everything done properly – get the wiring done first then conceal them.
Starting a business is the same thing. You’ve got to carefully think through what should be done first, what should you do, what your contingency plan is. A business plan, to me, is a valuable thing because I understand that things will change and things will keep changing, nothing is forever.
Business consultant Mr. Ching Chee Pun shared about the importance of writing a business plan on one of our regular webinars.
Let’s say I have a business plan. The business plan can be a planning for two years. To me a business plan should be constantly upgraded at least every two years, it is not “forever young.” So, why should we write a business plan? We write a business plans to find out if your business idea is good and feasible. This is very important. A lot of ideas are good, but sometimes, they are not feasible.
For example I have one client. She brings an idea, a green technology that can save a lot of energy for a building. It’s green, it’s good, but unfortunately, it’s not feasible. Why? The cost is too high. The cost is too high for normal people who may want to buy her product. If it’s too expensive, then it has no feasibility, and its viability and the marketability remains a question mark. So, understand that even if an idea is good, you have to consider its feasibility.
By going through the process of writing a business plan, like a market and competitive analysis, you will get a feel of what the business involves. You will then have to analyze the market, analyze the feasibility of the market accepting your product or your ideas. You also have to see whether you’re capable of surviving in the market. That is very important. What is your product’s positioning? Are there products in the market that will compete?
You will have to do a lot of research. That’s why sometimes you have to really spend some money on a market survey although some market surveys are very expensive. But, nowadays, you don’t really have to spend a lot of money on doing surveys. There are a lot of channels available especially in social media, which is very hot now.
I have seen people indirectly do their market survey through Facebook. Posting something through Facebook to see how the people feel and to test something out is, in fact, a market survey and also a great way to save on cost.
Are you starting a business or owning one? Here is a FREE consultation on Company Incorporation, Accounting & Tax services
With a team of over two decades of experience, WeCorporate are ready to assist you for all your business needs on corporate services.