Lesson 3: Building a Business Plan

Your business plan is a document that shows potential investors that your business is a hot concept, a popping idea and a shoo-in for filling the market.
An investor should be able to pick up your plan, go through it, and get the impression that what you are doing is fresh and unique.

The main component of your business plan is your business model.
Your business plan is an overview of all the aspects of how your business will work.
It needs to be informative, precise, compelling and error-free.
It can be conveniently broken down into nine key components.

1. Target market – this is who your service or product is aimed at.
2. Problem – this is the key problem your business seeks to identify and address.
3. Unique Value Proposition – here, basically, you need to synch your concept with something that the investors can relate to.
4. Your solution: your product or service.
5. Your channel – how are you selling: Directly? In Shops? Online?
6. Revenue Streams
7. Cost Structure – How are your expenses laid out? How much are you planning to spend on what?
8. Key Metrics – how are you going to be measuring your success? How are you going to see if you’re gaining traction in the market?
9. Unfair Advantage - What do you have that other competitors don’t, which puts you just a little above them? What’s your secret move?

There you have it. Nine steps for a solid, well-built business plan!

Important Things to Remember

• Open a business account.

• Look for funding through the government and other funding organisations.

• Never apply for a loan with a loan shark – they’re called sharks for a reason!

• Write a professional business plan to send to funders and clients.