The often asked question is what kind of business should I start? We know we want to go into business, but what kind? There are hundreds of businesses available. The viability of a business will largely depend on the following which an entrepreneur should analyze very well:
- market niche that needs the product/services
- knowledge of the product/services
- location of the business
- value-added of the product/services, in terms of quality and timeliness of delivery
- availability of raw materials
- after sales service
- manufacturing capacity
The business plan is a that will serve as a guide to the entrepreneur as he/she implements the business and as a monitoring and evaluation tool in assessing the progress of the business. It is not something that is permanent, but rather something that should be periodically updated as the market demand changes. Thus, the entrepreneur should seriously prepare the business plan before the start of the business.
After the hurdle of searching the type of business to start. Its time to prepare a business plan. Most who started their businesses relied solely on their gut-feel to tell them that their business idea is ok and that they should pursue it. But as the business progressed or investing more money into the business became more critical, these same entrepreneurs discovered how important it is to have a well-written business plan. So much so that they have had to hire a consultant to assist them in the preparation of the business plan.