Making a plan for everything is very important, especially for developing a business idea. Writing down a business idea is the first and most important step in making it a reality. A business proposal created with in-depth research will help you start a business, whether you are looking for investors, convincing a bank manager, or looking for business supporters.
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Method 1 of 3: Preparing to Make a Business Proposal
Step 1. Find out if you have the time, energy and resources needed to make your business idea a reality
Realizing a business idea can take a long time. Also know the financial sources that you can access to start a business, both cash and credit. Then consider whether you will make the business your main or part-time source of income, and whether the business idea can be implemented by others.
Step 2. Research a product or service that is similar to the product or service you are about to offer
If you have a business idea, first of all, find out if there are products and services that are similar to your offering. If your business model is already run by competitors, don't worry, because the business idea may have a large market share so it's worth entering. In addition, the presence of competitors can help you identify market needs that have not been touched by existing businesses.
- Pay attention to consumer feedback on products or services from potential competitors. Once you know the weaknesses of competitors' products/services, you can design a business proposal containing solutions to these weaknesses, so that your proposal becomes a unique offer.
- If you can't find a product/service that is similar to your offering, your business idea is likely to be a success, as your business will serve the needs of an untapped market.
- However, the absence of competitors can be a sign that your business will be difficult to run in the future.
Step 3. Consider a marketing strategy for your future business
Think about how you will market your product or service to the public. Take a look at your competitors' marketing processes, and analyze the strengths and weaknesses of those marketing processes to learn what went wrong. If you can't find a good marketing strategy, your business idea isn't worth implementing.
- Pay attention to the ads and other marketing tools that competitors use to attract customers.
- Determine the core elements of competitor marketing, e.g. price, quality, service, etc.
Method 2 of 3: Considering the Financial Aspects of a Business Plan
Step 1. Know the funds needed to realize the business plan
How much income do you expect when you start growing your business, and after it grows? How much capital do you need to start a business? To find out how much money you need to start a business, start by calculating potential income instead of expenses. How many units of the product do you expect to sell at the price you set, based on the market research you have done? Determine product prices based on competitors' product prices. Generally, you should price your product, or set a price slightly below that of a competitor's, unless your product has a certain advantage. After determining potential revenue and sales forecasts, calculate expenses based on fixed (administrative) and variable costs (estimated sales). Then, create a shadow financial report.
- To find out the price of raw materials, contact the provider of the goods or services needed.
- If you can't pay yourself, reconsider the business idea. Do not forget to separate business money and personal money. Failure to separate the two can land you in debt.
Step 2. Consider tax and legal aspects if necessary
To start a business, you may need to go through several processes to meet certain legal requirements. Take into account the tax and legal aspects of the business proposal to prevent the unwanted.
Contact the nearest Ministry of Trade office to find out the licensing requirements, taxes, or other things you need to do to start a business
Step 3. Calculate the profit required for the return on investment
This step is quite important, because many businesses fail due to lack of funds. Once you have calculated the implementation costs, calculate the profit required to return the capital, so that you can determine the price of the goods/services. This calculation can also be used to create a payback timeline.
- To start estimating profits, use the break-even calculation.
- Although the profits should outweigh the implementation costs, most businesses go out of business in the first year. Therefore, the return on investment in a matter of years is already a success.
- The estimated return on investment will strengthen your business proposal, especially if you are going to apply for credit.
Method 3 of 3: Creating a Business Proposal
Step 1. Draft a full business proposal
A good business proposal generally includes a detailed description of the business idea, market research, possible marketing strategies, costs involved, and pricing strategies. Divide the business proposal into chapters, as follows:
- Executive summary, which briefly describes the business plan. In this section, state the purpose of your business proposal.
- Market research on your business industry. Explain why your business proposal must be successful, taking into account unique and specific market conditions.
- Business proposal implementation strategy and plan.
- Financial plans and costs required to realize the business, and projected profits if the business is successful.
Step 2. Pay attention to the readers of the proposal, and don't assume they have relevant knowledge
Many business ideas fail to get support because the readers of the proposal do not understand the content of the proposal. Explain everything in the proposal as you would explain it to someone from outside your field.
Step 3. Make sure the proposal is well designed
Useful graphics, promotional illustrations and product prototypes, and easy-to-read document layouts will make the proposal look more professional. Bind the proposal professionally, and print the proposal in color if there are graphs and diagrams on the proposal. Be prepared to make presentations in support of the proposal.
Step 4. Ask an independent party to review your proposal
Others may find errors and omissions in the proposal. Ask a business professional you trust to review your proposal, and ask for suggestions to add information to the proposal. After the proposal has been reviewed, consider the suggestions that should be applied to the business proposal.
By having a business professional review your proposal, you open the door to business mentoring/guidance, or even financial assistance to start a future business
Tips
- Consider taking business training, which is usually held at local polytechnics, business incubators, chambers of commerce, etc. The business training will help you design a proposal and fill out a funding application, as well as provide information about the requirements you must complete to realize your business idea.
- Talk to people who understand business. There are many places you can go to for free or inexpensive business planning help. Talk to businesses in related fields, visit start-up support services, or even local universities and ministries. If you're willing to search, you'll find plenty of help planning a business.
- Believe in your idea! In the end, with a good proposal written with in-depth research, you will be able to make your business happen if you are committed and show enthusiasm during your presentation.
- Pay an accountant, and consider consulting a business mentor.
