The most important step in launching a new business or expanding an existing business is the construction of a business plan.  A business plan is required whenever money is to be raised from a bank, finance house, or a provider of equity capital. Research studies show that the absence of a business plan leads to a higher incidence of failure for new ventures. There are a number of other advantages for example;

• Your business plan will show you how much is needed for what and when needed
• Will give you an insight into the planning process
• Will boost your confidence about your ability to set up and operate the business

Your business plan sets out what kind of business you are in. Communicating clear ideas of the business you are in to investors, helps prove you can get your business off the ground and build it up.

Planning for expenses will be important for keeping operations steady.

A business plan clarifies your objectives. It cover areas such as marketing opportunities, future financing requirements and provides a blueprint for the operation of your company. It also helps you to identify and focus on potential problem areas with the objective of proposing timely solutions. In summary it makes you aware of what should be done when it should be done and how it should be done.

1. Executive summary – what you expect your business to accomplish
2. Company Description – Key information about your business – vision, mission, goals and target customers
3. Market Analysis – An analysis of your industry and your specific market, personan buyer, SWOT analysis and customer behaviour.
4. Competitive Analysis – A camparison of your business to your competitors
5. Management and Organisation – How your organisation is set up. Managers, skills and responsibilities

6. Overview of Products and Services – Overview of your products and services
7. Marketing strategy – How you intend to promote your products an services and the channels to reach your market. Includes marketing budget.
8. Sales Strategy – Sales target and how you intend to sell your products and services
9. Request for Funding – How you plan to use the capital (funding) you need
10. Financial Projections – Anticipated revenue for the first 12 months, cash flow and projected earnings for the second and third year.