Business Planning To Open A New Business

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Business Planning

Opening a new venture is impossible without a plan in advance. The plan must exist however simple it may be in writing. However, many new entrepreneurs in our country are unwilling or may not be able or reluctant to write such written plans for various reasons. Unwritten planning must have been engineered in mind, namely a simple engineering of the answers to various questions, including, what business to open, why to choose the business, where is the location, who are the consumers, where the capital sources come from, and so on.

A work plan that is made in writing and officially to run the company is the right tool to maintain company control and keep the company's business focus from deviating.

Business planning needs to be prepared because it is the legitimacy of a business to be established. People need to know everything about your company so they are interested in working together.

Problem Formulation

  1. How important is business planning
  2. Definition of planning
  3. Elements of the business framework

The purpose of creating this article is to provide information related to business planning materials to be used as information used for students or the general public.

The Importance of Business Planning

There are several important reasons why people should develop a Business Plan:

  1. To sell yourself on the business
  2. To obtain bank financing
  3. To obtain investment funds
  4. To arrange strategic alliances
  5. To obtain large contracts
  6. To attracts key employer
  7. To complete mergers and acquisitions
  8. To motivate and focus your management team

So the objectives of compiling a Business Plan are:

  • Certify that you as the owner and initiative holder open a new business.
  • Arrange and form cooperation with other existing and mutually beneficial companies for example from producers who can be expected to supply goods to your company or larger companies provide work or contracts that can be done by your company.
  • A business plan can also invite certain people who are potential or have expertise to join you.
  • Business plan is also useful for mergers and acquisitions, for example you sell a large company then the big company must read your business plan or maybe you also want to buy another company then the business plan that you can arrange can give confidence to other companies that want to be acquired.
  • The business plan aims to ensure the focus of the objectives of various personnel in the company.

In order for the company to run on the right path, an entrepreneur must compile a Business Plan. The Business Plan is :

Definition of Business Plan

A Business Plan is a document that expresses confidence in the ability of a business to sell goods or services by generating satisfactory and attractive profits for funders.
A better definition states that a Business Plan is a selling document that reveals the attractiveness and expectations of a business to potential funders.
The business plan provided by the entrepreneur is also in accordance with the advisor which contains details about the past, present state and future tendencies of a company.
Business Plan is made in short-term or long-term form which is first followed for 3 years running. Business Plan is a journey or road map that will be followed by entrepreneurs. The Business Plan seems to answer the question: where am I now? Where am I going? How will i get there?

Business Plan Framework


The basics of business planning mind include :
1) Company name
The name given should not only be concerned with factors that are warm at this time but more oriented towards the future. Canon and Wichert state that good brand traits are:
  1. Short 
  2. Simple
  3. Easy to spell
  4. Easy to remember
  5. Pleasing when read
  6. No disegreable sound
  7. Does not go out of date
  8. There is a relationship with merchandise
  9. When exported it is easy to read by foreign people
  10. Not offending other groups/people or not negative
  11. Imagining what a product is or suggesting the use of the product.

Company location

There are two important things regarding the location to be chosen, namely:
  1. Office location, called domicile means the place (office) of a business entity, usually managing a company that is located elsewhere
  2. The location of the enterprise, called the place of residence means the place where the company operate.

Location of shops


Generally, the location of the store must be remembered that consumers to shop or to a location that has many types and supplies of merchandise and has a reputation as a location that has quality goods and competing goods.

Factory/industrial location

There are two main things that must be considered in choosing a good factory / industrial location, namely:

  1. Backward linkage, means backwards, that is, how the resources will be used. This includes raw materials, labor, atmosphere and conditions of the local community.
  2. Forward linkage, means the relationship ahead, namely the area of marketing of production products. Are there enough consumers available to absorb the production results.
The opportunity to choose the commodity sought can consider the following:
1. Flood of public demand for certain types of business results, whether in the form of goods or services.
2. Identified hidden needs of the community for certain goods or services.
3. Lack of rivals in the field of business we want to work on
4. There is a convincing ability to compete with others in developing the same field of business.

Intended consumers


Consumer prospects are based on the form of business and the type of business. If the type of business is in the form of industry, of course, the reach of consumers to be targeted is farther than the business form of shops.

Markets to be entered

A company that will enter the market will place its company as a market leader, market challenger, market follower, or market nicher.

Partners who will be invited to cooperate

A partnership is an association or fellowship of two or more people to run a profit-seeking business. There are two kinds of partnerships, namely :
  • General partnership, in which all members actively operate the business equally responsible, including unlimited liability for business debts.
  • Limited partnership, which has at least one member who is indefinitely responsible and the other member has limited liability.

Personnel who are trusted to run the company.

Bussiness Planning To Open A New Business


Choosing trusted personnel concerns issues of character, honesty and abilities of a person.

Expected and available amount of capital

If the capital is very small, cooperation can be carried out with partners, each of whom deposits its capital. All these sources and capital gathering capabilities must be written. Capital can also be obtained from savings, selling property, or loans from parents and family or loans from banks or other financial institutions.

Conclusion

A Business Plan needs to be prepared because it is the legitimacy of an established business. The Business Plan that is made acts as a tool for holding company control and keeps the company's business focus from deviating

Suggestion

For parties who plan to start a business, they should prepare a business planning plan, both written and unwritten.

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