An Entrepreneur’s Business Plan

An entrepreneur must advance their business by planning for the long term. Success can only be found if the plan is implemented correctly. To advance your plan periodically, you need to have a business plan. The plans should be as follows:

Executive Summary

 

You need to create an overview of your company. An overview means writing all the information about your company on one or two pages and giving it to a stockholder. Any problem of the company and its solution process should be communicated to the stockholder. Talk about all the advantages and disadvantages of the company, and highlight how the value of the company will grow. For example, if your company needs shareholders, you can provide them with a complete overview, including all income and expense accounts. The company has to show a profit. Investors will decide whether to invest after reviewing all the information about the company. In this way, the value of the company begins to be created.

 

Vision

 

The vision statement is meant to motivate your team. It is a valuable tool for creating a business’s corporate identity. Successful organizations focus on mission statements, but the vision statement reinforces your business growth strategy. The vision statement aligns your company’s values and goals. It clarifies your business’s purpose and meaning to the company’s stockholders and employees.

Mission

 

A mission is a short-term plan. A business is run with a target for a specific period of time. The mission is to make a profit according to the target and sell products based on that target. A clear mission increases the efficiency of your employees and the business.

Objectives:

 

The main objective of a businessman is to earn profit. A successful entrepreneur builds a thriving company by following a business plan. If you are an entrepreneur, it is important to have a long-term plan for your business. You need a clear concept of why customers will buy your product. For instance, Microsoft envisioned that every person should have a computer in their home, and today, nearly everyone does. This was Microsoft’s objective. An innovator must think similarly—“My product needs to be in every household.” If you are an egg trader, your objective is to deliver eggs to the customer. In this case, you must plan accordingly. If the hens are properly fed and cared for, they will lay eggs consistently. Your objective will be successfully achieved through proper care and planning.

Start-up Capital

 

An entrepreneur needs initial funds to start a business. It is not advisable to begin a business with a large capital investment right from the start. Based on my experience, you should start the business with one-third of your capital. Until you reach the expected profit, avoid increasing the capital. Find out why the desired profit isn’t being achieved, identify the problem, and work quickly to solve it. Once you reach the expected profit, you can start increasing your capital. Do not start a business with loans unless you have some of your own capital. Starting a business with loans can lead to significant losses due to interest payments or the need to repay the loan. So, it’s important to have some initial capital for your business. You should grow your capital using the profit from your business. If you manage that capital properly, you will become a successful entrepreneur.

Business Expenses

 

If an entrepreneur wants to start a business, they need to understand the associated expenses. Identifying where, why, how, and how much is spent is crucial. Various types of expenses must be managed in business. The business should be run by calculating the income and expenses. 

Here is a list of common expenses incurred by a businessman:

1. Advertising the product to promote the business
2. Paying business taxes.
3. Paying employees.
4. Renting the office for your business.
5. Paying for business computer and website expenses.
6. Creating a license and renewing it annually.
7. Paying office utility bills.
8. Covering daily staff expenses.
9. Producing books and catalogs for employee training.
10. Paying insurance costs.
11. Paying for self-employment health insurance.
12. Paying attorney fees for business legal matters.
13. Providing gifts to employees to generate business profits.
14. Paying banking transaction charges.
15. Covering daily office food expenses.
16. Purchasing business supplies such as paper, pens, envelopes, tapes, staples, clips, etc.
17. Covering travel expenses for traders.
18. Paying employee disability insurance, life insurance, and health plan assistance costs.
19. Repairing business essentials.
20. Paying for printer paper and ink.
21. Maintaining company vehicles and paying drivers.
22. Paying interest on bank loans.
23. Covering software update costs.
24. Providing gift items to customers with the product.
25. Paying monthly telephone bills.
26. Providing loan and overtime benefits to employees.
27. Forming various employee trusts.
28. Organizing picnics with staff.
29. Covering product packaging costs.
30. Sponsoring sports or events as part of the company’s marketing objective.