A business plan is any simple plan, not only limited to the business start-up plan that helps the management to understand the current situation of the enterprises (strengths, weakness, opportunities and threats) and look forward into the future. A start-up plan is a business plan which consists of the mission, vision, objectives and action plans for the future of the new enterprises while the business plan drawn during the operation of the firm is vital for running the firm effectively, acquire new customers, partners, loans and so on. According to Fiore (2005), a business plan involves two dimensions; an organizing tool to simplify and clarify your business goals and strategy, the second one is a selling document that sells the business idea and shows that a product or a service can make a profit and attract funding and company resources.
Imagine you started a new business as an entrepreneur in Saudi Arabia. Briefly mention the specific steps which you consider necessary to a successful business plan.
Please, think and share information on the following items:
- Owners, capital structure and company profile (2 Marks)
a. Your Business Name, Address, E‐Mail
b. Form of ownership: What is the legal structure? Sole proprietor, Partnership, Corporation….
C. Investment capital
- Company Business Description (300 – 400 words)
A. Scope and type of business (4 Marks)
What business will you be in? What will you do? What market segment will you choose?
- Business idea: what is your big idea? Is it a product or a service? What makes your idea different?
- Mission Statement
- Company’s short-term and long-term goals and objectives.
- Target market and demographics: Who will your customers be? Where do they live? What is your target market passionate about?
B. Business Philosophy (4 Marks)
What is important to you in your business?
- Describe your Industry: Is it a growth industry? What long-term or short-term changes do you foresee in the industry? How will your company take advantage of it?
- Describe your most important company strengths and core competencies: What factors will make the company succeed? What do you think your major competitive strengths will be? What background experience, skills, and strengths do you personally bring to this new venture?
- Risk Assessment: Evaluate the strengths and weaknesses of your business using SWOT.
•Who is your competition and how do you beat them?
Steps for a Successful Business Plan in Saudi Arabia
1. Owners, Capital Structure, and Company Profile
a. Business Name, Address, E‐Mail:
Business Name: [Insert Business Name]
Address: [Insert Business Address]
E-Mail: [Insert Business E-Mail]
b. Form of Ownership:
Legal Structure: [Sole Proprietorship / Partnership / Corporation]
c. Investment Capital:
Specify the amount of investment capital and the sources of funding.
2. Company Business Description
A. Scope and Type of Business
Clearly define the nature of your business, including the products or services you will offer.
Market Segment: Identify the specific market segment you will target.
Business Idea:
Briefly explain your unique selling proposition and how your idea differs from existing competitors.
Highlight the key benefits or advantages that set your product or service apart.
Mission Statement:
Craft a concise mission statement that communicates the purpose and values of your business.
Short-term and Long-term Goals and Objectives:
Outline the goals you aim to achieve in the short and long term.
Clearly define measurable objectives that will drive your business forward.
Target Market and Demographics:
Identify your target audience, including their location and demographics.
Understand their needs, preferences, and what motivates them to purchase.
B. Business Philosophy
Industry Description:
Describe the industry your business operates in, highlighting whether it is a growth industry.
Discuss any anticipated changes or trends that may impact the industry in the short or long term.
Explain how your company plans to capitalize on these changes.
Company Strengths and Core Competencies:
Identify the key strengths of your business.
Highlight any unique resources, expertise, or competitive advantages you possess.
Emphasize how these strengths will contribute to your company’s success.
Risk Assessment (SWOT Analysis):
Evaluate the strengths, weaknesses, opportunities, and threats (SWOT) facing your business.
Identify potential risks and challenges and outline strategies to mitigate them.
Competition Analysis:
Identify your main competitors and analyze their strengths and weaknesses.
Highlight how your business will differentiate itself and overcome competition.
Emphasize any competitive advantages you have over competitors.
Conclusion
A successful business plan in Saudi Arabia requires careful consideration of various aspects to ensure a solid foundation for your venture. By addressing ownership details, clearly defining your business and target market, understanding industry trends, leveraging strengths, conducting a thorough SWOT analysis, and devising effective strategies to beat competition, you can increase the likelihood of success for your new business. Remember, a well-crafted business plan not only serves as an internal guiding tool but also as a persuasive document to attract investors, partners, and resources.