What are the best free online courses for developing a business plan?
- Small Business: The Business Plan
This is a great course for anyone who wants a thorough grounding in creating an effective business plan and covers risk, investors, franchising, mission statements and even contingency planning.
- Business Planning: How to Write Your Business Plan
Although this course is focused on Canada, it still has universally valuable lessons if you need back-up on branding, identifying competitors, generating financial statements and organising systems in your small business.
- Business Development Essentials
Another excellent option that will guide you through thinking about the right target market, competitive pricing, packaging, branding and many other factors that take your idea from being just a concept to being an actual company.
What is a business plan and why do I need one?
Simply put, a business plan is a formal document that lays out what you want to achieve and - more importantly - how you’re going to do it. You need to clarify your goals and the steps it will take to reach them. Writing, ‘I want to open a business and be a millionaire in five years’ time’ is not a true business plan - that’s the ultimate place you want to be. A business plan is the map that will get you to that place of success and financial stability.
Such plans are important because:
They make you think more clearly about opportunities and potential stumbling blocks. It is easy to get caught up in the excitement of starting a new business only to find that there are several major factors you haven’t considered (such as the cost of registering your operation, staff compensation, machinery maintenance, increases in the price of materials and so on).
Banks almost always want to see a full business plan before they lend you money. They are taking a chance on you and need to be assured that you have done your ‘homework’. A well-crafted business plan might convince them that you will be able to pay back the funds they lend you (with interest!).
Investors will also require an extensive business plan to be persuaded that your idea can work. Like banks, investors are taking a gamble on an untried business and need to be sure that you’ve considered as much as possible - all laid out in a comprehensive business plan.
What questions do I need to answer in my business plan?
The more detail - based on actual research - you can include in your plan, the better. Having a set of questions that you need to find answers to can shape your idea into something even better (it may also show you that your concept won’t work, which is disappointing but will save you time and money you can spend on a different concept!). Planning your business is crucial as it will prevent a lot of costly missteps down the road. Here are basic questions you should be trying to answer:
What is my business idea?
What product or service am I seeking to provide?
What people or other businesses am I going to target?
How much money will I need to start?
What will this money be spent on?
Why will this business succeed?
Who will my competitors be?
Who will my customers be?
Who will my suppliers be?
What equipment or premises do I need?
What licences, certifications or qualifications will I need to operate legally?
Where will my business be based?
Who will create the branding?
What marketing will I do?
How much debt will I incur to get it up and running?
What are the biggest opportunities?
What are the biggest stumbling blocks?
Will I need staff to help me?
Do I need to open business accounts with my bank?
How will I ensure I am tax compliant?
What will happen if I run out of stock or don’t sell what I’ve ordered?
Where will I keep stock?
Do I need to copyright or patent my idea?
How will I pay rent on premises before I start selling?
When do I want to launch this business?
When do I need to start breaking even?
When do I need to start turning a profit?
How many potential clients or customers will I have?
Why will they use my business and not others?
Why do I want to start this company?
