A proper business plan will detail everything you need to know about the idea in your head. It will tell you your startup ideas, all of your goals and aims, contingency plans, etc.
Many people think you can draft up a business plan in no time at all, but this isn’t the case. Writing one will take some time, as you have to conduct loads of research beforehand. But, all the effort is worth it as you’ll finish with a complete plan that helps keep you focused and give you a sense of direction in which to proceed in. Plus, there’s every chance that different people will request to see your business plan if you hope to get help from them. For example, if you need a loan from a bank, they’ll need to see your plan, and it needs to impress them, or you aren’t getting any funding.
Bearing all this in mind, how do you write a proper business plan? The easiest way to do it is to split the plan up into different sections.
Below, you’ll see each section along with a breakdown of what should be included in it:
First and foremost, you need to write a summary of your business idea and what you hope to achieve with it. This section needn’t be too long, as it’s just there to give people an overview of everything. Keep it brief, describe your business, talk about your goals and clearly state what you want.
After your summary, you need to write a section that describes your company in much more detail. This won’t be as brief as the summary and is more focused on what your business is and how you differ from other similar businesses.
This section is important as it’s used to convince readers that your company is special and that they’re not wasting their time reading your business plan. Be sure to also include information on your industry as it shows you’re aware of the field you’re venturing into. Plus, it also gives readers a background on the industry so they can see that your business will stand a chance against other companies.
After you’ve spoken about your company, it’s time to present your market analysis. What is this? It’s a section where you essentially show the reader what your target market is. You present your analysis of the market and include all the relevant information such as their age group, gender, lifestyle, interests, etc.
Amongst this analysis, you should provide a strategy as to how your business will appeal and approach your target market. What are you going to do to ensure you tap into the market and promote your business as best as possible? This is very important as it helps formulate the structure of your future marketing plan.
Service Or Product Line
In your service/product line section you will be talking about the main part of your business; what you’re selling. This part is all about telling a story of your products/services and how they will benefit others. What you’re aiming to do is convince readers that your target market needs your products/services.
In this section, you should also include details on how the products will be created and sold, as well as how the services will be offered.
Organization And Management
Next, you need to dive deeper into the structure of your business and compose a section on organization and management. The idea with this section is to inform readers how your business is going to be run, who will be in charge of it, the number of employees you hope to hire, and many other things along the same lines.
You will describe how your company aims to function on a day-to-day basis and talk about the roles that all of your employees will take. Who will be in charge of what, and what will they do every day? It’s also a good idea to talk about how much the organization & management of your business is going to cost.
This is an essential section as it will be used to inform readers of how much funding you’re hoping to receive. As a result, you must conduct a plethora of research before writing this part. Firstly, you should analyze your business idea and consider how much money you’ll need to get things started. Take into account the cost of organization and management, the cost of procurement, the cost of any premises you hope to rent; the list goes on and on. Essentially, if you need to buy anything, make a note of how much it will cost.
Total up all of your predicted expenditure, and it will give you a rough idea of how much startup money you need. It’s a good idea to overestimate just in case your predictions are wrong, and things are more expensive. Plus, by asking for more than you think you need, it means you have a little bit of extra money as a backup in case things go wrong during the startup process.
Your financial projections will be used as a backup for your funding request. This is the part where you make some calculations based on your product/service line and how much money you think you’ll make.
Think about how much it costs to supply your service/product, and how much you’ll make from each sale. Then, set a target for how many sales you want to make each month, and you can calculate your projected earnings. Make sure you play around with figures until you’ve reached a point where you’re definitely making a profit with every sale. You’re far more likely to secure funding if the reader can see your idea is a money maker.
Finally, you have the option of adding an appendix to your business plan. This isn’t essential but is a good place to include additional information such as your resume, permits, and leases.
Follow this structure, and you will soon have a proper business plan written and completed. Make sure you check it through multiple times for any errors as it needs to be perfect.
Essential Guide To Start A Detergent Powder Making Business
If you’re thinking of starting a business, one of the most promising industries today is the laundry washing powder or the detergent powder. Plus, anyone can start a detergent making business. You don’t need significant capital investment to make it work.
Are you considering it?
If you are, here’s an essential guide to starting a detergent powder making business.
About Detergent Powders
Washing and detergent powders are surfactants. These are the most crucial ingredient in washing and cleaning purposes.
In general, there are two types of manufacturing technologies today. There’s the mixing of raw materials, and the other is spray dried. However, you have to keep in mind that the first option is your perfect choice for large-scale operations. It even demands a huge capital investment for you. The second one is the easier option, which is the mixing formula. Here, you can easily start your manufacturing process with a small amount of money.
Detergent Manufacturing Business
In recent years, demand for detergents has increased as with the growth of population. In general, the detergent powder segment only caters to three different categories, which are the lower, middle, and higher-end markets. As one of the necessities of people today, the demand for detergents is slowly increasing.
Because of rapid urbanization, there’s more and more demand for detergent powders in sachets and small pack sizes. Aside from that, there’s also the increasing per capita income, which helps in boosting the population’s purchase capacity. Furthermore, a very wide range of options in hunger for good living, health awareness, and choice are just some of the main reasons why detergent powders are growing in demand.
Also, rural areas are replacing detergent cake with washing powders! Aside from domestic consumption, these products also have different usages in several industrial sectors. In the small and medium sector, you can find a good investment opportunity in the detergent industry. Thus, washing powder manufacturing is quite a lucrative opportunity for those who want to start a business.
Plant Setup and Machinery
Initiating a small-scale detergent powder manufacturing in only around 1000 sq ft area is possible. But the final area required will depend mostly on your desired quantity output.
Plus, you still need to secure your factory location with careful planning. It must have transportation, electricity, and water nearby.
These are some of the types of equipment that you will need in manufacturing detergent powder:
- Weighing Scale
- fine screen
- product quality
You can find most of these on Unifite.
Each company has its detergent powder making the formula. Depending on your target market demographic, you have to craft a unique formula. You can source the needed manufacturing technology from several researchers and schools.
To help you, we’ve put together this reference for your basic formula and ingredients percentage.
|Ingredients||Premium grade (Wt, %)||Popular grade (Wt, %)|
|85% active LAB acid slurry||18||15|
|Sodium carbonate (soda ash)||35||32|
|Alkaline sodium silicate||No||7|
|Sodium Sulphate (anhydrous)||20||25|
|Sodium carboxymethyl cellulose||1.5||1|
|Phthalocyanine blue color or oil-soluble yellow color||0.1||0.1|
Here’s how detergent power is manufactured.
- Using soda ash, neutralize the acid slurry.
- Then, so that the reaction is completed, keep the mixture for about an hour.
- Mix all the other ingredients like Colours, Glauber’s salt, CMC, STEP, Perfume, TSP, and many others.
- Once done, continuously mix everything so that your ingredients blend to the neutralized acid slurry.
- Afterward, dry the mixture.
- Lastly, pack your finished product. Make sure to use proper packing.
Packing Your Detergent Powder
Aside from the raw materials above, you have to look for suitable packing for your detergent powder. In general, these come in a poly pack. Then, pack them into quantities of 250 grams, 500 grams, 1 kilogram or 5 kilograms.
Make sure to think of the packaging thoroughly since these have important aspects of marketing. You have to design them with the customer in mind. Also, every one of your basic details should be put in the packets. These include the MRP, quantity, manufacturing date, customer care number, company address, and many more. Don’t forget to arrange the outer cartoons for transportation and bulk packaging.
If possible, make sure to choose eco-friendly materials for all of these. Don’t contribute to global warming.
All in all, if you want to make a commercial detergent powder, you’ll have to read a lot. Get to know some basic knowledge. Get a book. This is one of the best guides for you. We’d recommend the “Soaps, Detergents And Disinfectants Technology Handbook.”
Detergents refer to dish detergents or laundry detergent in comparison to hand soaps or other cleaning agent types. You can find in the book some technology fundamentals of washing saponified soap or soap making. Plus, you can see here total soap making operation, earth bleaching oils, construction materials for plants that can be used for soap making, chemical bleaching, framed soaps manufacturing, fatty acids, floating soap bars, soap mixing, chips and flakes manufacturing, Mazzoni process, manufacturing of milled bars, chemicals from detergents and soaps, antiseptics and disinfectants, dry cleaning agents and many more.
Furthermore, you’ll find in the book some formulae, processes of different types of disinfectants, soaps, and detergents. These products all have a good demand in the domestic and international market. For entrepreneurs venturing in this field, this one’s a very food scope. You will find the book invaluable if you want to diversify into this field.
Plus, you can even produce liquid detergents and detergent cakes from your detergent powder manufacturing unit. How awesome is that!
If you’re still thinking of starting your own business, it’s best to start now. If you keep doubting, you won’t reach anywhere. If you fail, it’s okay. You learn from your mistakes. If you succeed, then well and good. Don’t stop learning.
10 Things To Do Before Starting A Business
Entrepreneurs are good at commercialising ideas and turning new products and services into must-haves. Before long their business has structure, systems and staff as well as a sustainable revenue stream, and they make everything they do look easy. However, behind that calm exterior lies a hard-working creator who has made sure their new business is well prepared for the long journey ahead.
One day you’ll feel invincible as everything in the business is going smoothly, sales are coming in, and bills are being paid. However, the next day, something unforeseen will challenge your very reasoning for starting a business in the first place. It takes many years to say you have a mature company.
Evidence of poor preparation is in the statistics that most businesses fail within the first five years.
A lack of preparation and knowledge of how to run a business is the key cause of business failure. Stop worrying that a delay in opening your doors will give a competitor the chance to beat you to it. Take the time to understand what makes a business successful. Once you’re satisfied you can tick the box of these important issues then it’s time to start operating.
Find Your Target Market
Your first step has to be thinking about your target market. Where are the prospective customers? No product is universal and finding the right target market is going to increase your chances of reducing pre-sales and marketing costs to secure sales and a profit. Your target market is going to impact everything about your business model from how you promote your company to where you choose to promote it, from PPP advertising to SEO initiatives.
Name And Logo
Next, consider the name and logo for your business. The name and logo need to be memorable and dynamic. It should stand out amongst the sea of competition that you’ll face online. You may want to pay more attention to the logo rather than the name. Research shows that consumers are more likely to remember images rather than words. Consider hiring a professional to create your logo too. That way, you can avoid it looking as though it came out of a cookie-cutter. Once you have decided on a name and logo, trademarking is vital. You must make sure other businesses aren’t able to piggyback off your potential success. Also have a look at Branding Considerations For Your New Business.
Build Your Site
Where are you going to display the name and logo of your business? A key area of your campaign would be your website. Again, you should hire a professional to design and website and make sure you host it yourself. By hosting it, you can increase your potential ranking online, thus attracting more traffic to your site. You need to think about what your site is going to be used for. It could be a place purely for marketing purposes, or you may want to set it up for purchases. If the latter is true, you must invest in secure sales software to protect customers data.
Set Up Social Media
No company will survive in the modern market without a social media presence. You need to set up profiles on everything from Facebook to Instagram and Snapchat. This will give you a wide range of options when choosing how to interact with potential customers online. More importantly, it will enable users online to find your business, updates, and information easily. These profiles can have a specific tone and consistent. You can also republish any content that you produce across all your profiles. This will ensure that you get the largest reach online.
Get In The Green
Starting a business is always going to be expensive, and it will damage your credit score at the beginning. You will need to borrow a lot of money for everything from inventory to employees. Increasing your credit score before you open your company will ensure you can borrow money with low-interest rates making it more manageable. At the start, most business owners pay for expenses out of their savings and quickly run out of money. At this point, you will have no choice but to borrow. It is crucial that lenders trust you to pay the money back or interest rates will quickly push your company into unmanageable levels of debt.
Pick Your Business Model
There are lots of business models to choose from when you decide how to run your company. For instance, it is possible to set up a company and run it from home, online or tap into an established brand via a franchise model. You might also consider using freelancers or outsourcing agents rather than hiring permanent employees on contracts. It all depends on the type of business that you want to run and the cost-cutting schemes that you want to use. Another good post to read is What Is The Best Legal Structure For My Business?.
Hire A Legal Advisor
A legal advisor is always going to be a beneficial hire for your business. It should be one of the first individuals you think about recruiting. They can help you with everything from paying the right amount in tax to forming contracts with business owners for suppliers and stock. They will ensure that you are up to date with important regulations and laws that will affect how you run your business. Also read Why Its Important To Engage A Lawyer ASAP When Starting A Business.
Form Contacts In The Industry
No business owner is an island, and it’s important that you have people in the industry who you can contact for help and support. A mentor to help guide you and provide skilled opinion is also highly recommended. You also want to make sure that you have clients set up, interested in your service before you open your doors. Early guaranteed customers will be crucial for keeping your company profitable in the first few months. You might already have contacts from a previous position in a similar business. Also consider tradeshows and exhibitions to give you a natural way to rub shoulders with investors, suppliers, and buyers.
Consult With An Expert
You won’t be an expert in all the areas of running a business. But you can hire someone who is. There are consultants for every sector of a company who can aid you in marketing, accounting or employee management. With someone by your side who has experience in these areas, you can avoid some of the common early pitfalls new owners endure.
Prepare Your Escape Plan
Finally, make sure you have an escape plan or an early exist plan should things not go your way. If your business struggles to sell enough to be profitable have a plan to quickly sell your inventory and make any money you spent back as quickly as possible. Selling down assets and stock will prevent you debt spiralling out of control and your business becoming insolvent.
Where To Find Help And Training For Starting A Business?
How To Check Business Name Availability?
How Do I Write A Business Plan?
How Do I Price My Products/Services?
Ideas For Keeping Business Costs Down
How Do I Manage Business Cashflow?
How Much Money Will I Need For My First Year Of Business?
How Do I Check My Businesses Compliance Requirements?
What Do I Need To Prepare Before Hiring Staff?
Five Basic (And Cheap!) Tasks That Will Dramatically Improve IT Security For Small Businesses
What Insurance Do I Need For My New Business?
Do I Need To Be PCI Compliant?
Suggested Next Read: How to Start a Business For Under $5,000
Is A Franchise Business Right For Me?
With startups all the rage these days, it’s easy for people to forget about another way of starting a business – franchising. Franchises are still a great way for people to get ahead in business, and there are options in almost every single industry. But, while franchising offers plenty of potential for success, the business model isn’t for everyone. In this guide, we’re going to take you through a few of the pros and cons of becoming a franchisee, and, hopefully, help you find out whether the pathway is a suitable one for your needs. First of all, let’s take a look at some of the advantages of becoming a franchisee.
Taking advantage of a recognized brand name
When you start a business yourself, there is a lot of work to do to establish your brand name. With franchises, however, it’s a little different. You are, in essence, buying into an already recognized brand name, and that means there are plenty of benefits. There is a lot of security in place right from the start, and you could be profiting from trading under a name known nationally – or even globally. In short, it almost guarantees customers as you already have their trust for quality and reputation.
Buying into an established – and successful – model
It can take a long time for startups to work out how to do things the right way – years in some cases. However, when you assume a franchise, everything is already there for you to take advantage of. The way of working is proven to be a success already, and you are enjoying a tried and tested formula. All the hard work of refining the business model is already done, leaving you to reap the rewards.
Running a business
Running a franchise is, to all intents and purposes, precisely the same as running an independent business. You will be responsible for everything, have the opportunity to explore growth opportunities, and, ultimately, will need to meet the same expectations as you would impose on yourself anyway.
When you buy into a franchise, the franchisor wants you to succeed. So, you get everything you need to kick things off in the right possible way, right from the very start. First of all, you have excellent training to ensure you have the skills necessary to become a success. Your employees get that training, too, making sure that everyone knows what to do before you open your doors. When you start a business yourself, training employees comes at a vast expense – which you just don’t need to incur with a franchise.
Systems, support, and savings
You will also get the advantage of equipment, software, IT systems and a lot more besides when you get involved with a franchise. Everything you need to succeed is given to you and is refined to the exact standards to ensure you achieve your goals. There is support available when you need help, too, which you just don’t have when starting a business. And, finally, the scale of orders that franchises place with suppliers means that you can take advantage of lower costs of raw materials.
Of course, franchising isn’t always without its problems. And to work out whether the model is the right one for you, it’s important to know the disadvantages, too. Let’s take a look at the other side of the coin of running a franchise business.
First of all, it’s vital to understand that buying into an already successful brand name is not cheap – some franchises cost millions for the license. Some franchises require less, of course – five-figure sums for buying in are not uncommon. But you should expect to part with a six-figure sum in many cases, and you will also have to pay ‘royalty’ payments of anything between 4 and 7 percent.
While starting a business of any kind requires 100 percent commitment to ensure success, it’s even more important for franchisees. When you consider the vast sums of money you have to spend to trade under a strong name, it can take years to pay that back. It means that commitment to your business is nothing short of essential, and you also have to bear in mind that signs of success could take a couple of years to start showing.
As we mentioned above, your franchisor will give you plenty of training opportunities to develop your skills. But you shouldn’t assume that this will be enough experience to run a well-drilled and productive team. If you have never managed people before, it can be a difficult prospect, due to the type of employees you have to take on. As a rule – although this isn’t always the case – franchises pay low wages, which, in turn, means a low quality of staff. Employee turnover, therefore, tends to be high in many franchises, and enthusiasm and productivity are often significant issues you can’t afford to ignore.
The rules and regulations
When you work under a franchise name, there is little room for creativity with regards to making choices for your business. The franchise rules will run through everything you do, from the decor of your store or offices to the way everyone works. And if you want to make changes, it can be hard to persuade the franchisor to let it happen. Bear in mind that many franchisees have made changes to the way they run their business, and are, more often than not, punished with a contract termination.
Not all franchises are a safe bet
Not all locations in the country are suitable for opening a franchise – even when that franchise isn’t represented in the local area. For example, some parts of major towns and cities are fiercely independent and don’t like the prospect of a massive global chain opening up on their doorstep. It’s vital to explore the market potential of your franchise of choice before making the wrong decision – which could result in an incredibly expensive mistake.
As you can see, running a franchise business is not for everyone. The big question is – is it a good fit for you?
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