Business Planning Process Research Paper

The Business Planning Process

INTRODUCTION

This guide will take you through the process of writing a business plan for a small or medium sized business. A business plan is important because it provides a framework that enables you to make effective business decisions to maximize the probability of success of your company. Even if you have a plan in your head, a written business plan is still important because it communicates your plan to potential investors and creditors who can supply needed capital to your business. It also provides you with a clear and concise guide for running your business and making decisions related to it.

Writing a thorough business plan takes time and research, but it is well worth the effort. Without a plan

A business idea is a way to generate profits by satisfying a currently unsatisfied customer need. Once you have a business idea you need to develop it by making it more specific. For example, your business idea may be to generate profits by providing customers a healthy alternative to Fast Food in a particular area. You could make this more specific by selling vegetarian food or healthy sandwiches that are made quickly to order. Once you have a specific business idea, you then continue to develop the concept by conducting market research to determine who your customers are going to be and what criteria they use to make buying decisions. Market research is a critical step in the business planning process. Research will be needed in order to conduct your market analysis and to do your marketing plan. You should not attempt to write your business plan or to develop your strategy until you have conducted extensive and thorough market research. Most lenders or investors, including Women’s Enterprise Centre, do not lend money to people who have not done sufficient market research for their business idea. You can use the information gleaned from your market research to tailor your product or service

Those segments will form your target market. Include a discussion of the criteria on which the various segments base purchase decisions. Describe why you will appeal to a particular market niche, the size of your market, and your anticipated market share. Discuss whether you plan to take market share away from particular competitors or to increase the size of the market by attracting new buyers. Outlooks for the market segments, including trends such as increasing size or income levels should also be