Businesses in 2021 seek to expand and perform better than previous years. This thirst for growth is applicable to all SMEs in Africa regardless of the industry or sector. Whether you are planning to start off a new business or grow an existing one, a business plan is essential.
What is a Business Plan?
According to Investopedia, a business plan is a written document that describes in detail how a business defines its objectives and how it is to go about achieving its goals. A business plan lays out a written roadmap for the firm from marketing, financial, and operational standpoints.
How To Create A Strategic Business Plan
Take some time to think it through
Before you kick start any business, you have to be prepared. The preparation process requires some deep thinking about what it is you want to achieve. Put together a list of what 2021 should look like for your business. Write everything down to aid some clarifications and guide you in the planning process.
Next, you want to analyze your marketing scope. What has worked for you so far? In what area can you use some improvement? An analysis of your past and present marketing strategy will help you come up with a better strategy for your business in 2021.
Review Your Goals
The next step in creating a killer business plan is to review your goals. First, you have to identify what those goals are. Then, ensure you gain some clarity for each of the goals. Where are you right now in your business? Where do you want to be by the end of 2021?
How do you go about this? It’s simple, set SMART goals. SMART stands for – Specific, Measurable, Achievable, Realistic, and Timely. In setting these goals, ensure they are in line with current business trends.
Identify Your Target Audience
One thing SMEs in Africa need to bear in mind is that everyone is not your customer. For your business to be successful, you need to identify your target audience. What interests them? What are their core values? What beliefs do they hold tight? E.t.c.
Once you identify your target audience, you can channel your business plan to suit their needs. One good way to know what works for them is by asking questions, get into their heads to know what really works for them.
Determine Your Business Objective
Having a clear business objective is essential for businesses in 2021. Objectives represent what your business is trying to achieve and what is expected at the end of a certain period. Your business objectives should be consistent, quantifiable, realistic, and time-bound.
Components Of A Business Plan
Regardless of what your business is about, all business plans should cover some essential components. Some of these components include:
Executive summary
Executive summary gives an overview of what your business and plan are about. It is the first or last section in your business plan and can be achieved in one or two pages.
Company/Business description
This section includes the key information about your business, goals, and target audience you seek to serve. Also, your business description should discuss what makes your business stand out from other businesses in your industry.
Market analysis
SMEs in Africa should have adequate knowledge of the market they are getting into. A well-detailed market analysis shows you have carried out your research and know what you’re getting into.
In the analysis section, you need to make use of data and statistics. In addition, provide information about your target consumers and their estimated income level.
Organization/Business setup
Your business plan should outline your business setup. Here, you get to introduce the reader to your key staff and their job description. To make things easier, this section can be represented with a diagram mapping out your command chain.
In addition, indicate how your business operates – partnership, sole proprietorship, e.t.c. In case you have a board of directors, ensure you identify all members of the board.
Products and services breakdown
If your summary does not give out all necessary information about your products and services, additional details can be provided here. This section should give your reader an idea of products and services provided by your business. Also, you should include how your products will meet an existing market need.
Marketing plan
How do you intend to take your products out there in front of potential customers? This section should provide an answer to that question. Explain how you’ll promote your products and services, including the budget needed to implement the strategies.
Financial projections
Businesses in 2021 should reveal their financial goals and expectations in their business plan. This expectation should be set based on market research that must have been conducted. Such projections should include anticipated revenue for the first few months or even year(s). If you plan to apply for a personal loan, you can include more information about it in another section of the plan.
Conclusion
As SMEs in Africa, your business plan might look nothing like that of another business. This difference is due to the individual uniqueness of each business. However, ensuring your business plan contains the essential components that will help you nail it in 2021.
Having an in-depth business plan in place will help to scale your business and also provide you with all the support you need. In order to achieve your business goals at the end of the year, now is the time to carefully map out an outstanding business plan.