From page 38
A business plan is not only
necessary when you are
looking for financial assistance
or for initiating a business
start-up - it should be an
evolving working document
that is reviewed regularly and
adapted to the business
circumstances as and when
the internal and external
environment changes. A good
plan maps the course of
action to achieve your
business goals and aspirations;
it is the operational tool that
directs each and every step in
the business.
Manage your cash flow
Ensuring that you have
sufficient to pay the initial
bills, and managing your
debtors and creditors is vital.
Collect your cash as fast as
you can, and don't pay
anybody until they ask you to
~ that should be the mantra
of the small business owner.
Cash flow is affected by speed
and volume ~ how much
OPEN FOR BUSINESS
a market in the gap? You
A good business plan is the operational tool might have identified a
that directs each and every step in the
product or a service that is
business.
not being provided, but you
money flows into and out of
your account and how
quickly.
Ensuring that there is sufficient cash to begin with is
imperative if one is to survive
the first few months or even
years in business.
So, when you are preparing
the initial business model you
should not only calculate how
much capital you require for
the purchase of machinery,
stock and raw materials, but
also how much you need to
fund the cash flow.
How much is enough? The
simple rule of thumb is to
work out how much you
think you will need ~ then
triple it! Some knowledge of
or research into the norms in
one's chosen business should
be the starting point.
Marketing strategy
Your marketing strategy is a
process that can allow a
business venture to concentrate its limited resources on
the greatest opportunities to
increase sales and achieve a
sustainable competitive
advantage. A marketing
strategy should be centred on
the key concept that customer satisfaction is the main
goal. Without customers you
will not survive or exist.
Possible questions to ask
when formulating a good
marketing strategy:
K Are you growing your
business or are you entering
into a new market?
K When and how will you
sell your products?
K What gives you the
competitive edge, how will
you penetrate the market?
K Is there a gap in the
market?
K Most importantly – is there
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must be sure that you have
buyers for what you are
offering.
K Do you already have a
market before you start your
business? This provides critical
information to a financier for
a decision to be taken on a
Continued on page 40