Do you want to start a business with an investment of one lakh only? But before starting you should have a good business plan. A business plan is a guide for how a company will achieve its goal. It is the blueprint of your business. A step by step procedure that would convert a business idea into your successful business. Crafting a business plan is a vital first step for anyone who wants to start a business. It, first of all, identifies strength, opportunities, threat, weakness and also assesses the feasibility of the idea, then arranges resources in the best possible manner to make the plan successful.
The main purpose of a business plan is to raise funds for the new enterprise. Without a good business plan no bank, individual, investor or venture capital firm will provide you with the funds that you need for starting your venture. An effective business plan can also ensure that everyone in your business is committed to the same goals and objectives. It develops business targets and develops a strategy for meeting them.
The Objectives of Business Plan are as under:-
- To give directions to the vision formulated by entrepreneurs.
- Objectively evaluate the prospectus of business.
- Monitor the progress after the plans are being implemented.
- Persuade others to join your business.
- Seek loans from Financial Institutions.
- Help to identify the challenges, opportunities and threats from the external market.
- Guide entrepreneur in the actual implementation of the plan.
The various parties that are interested in a business plan are:-
- Managers:- Managers are involved in small business planning both as producers and receipts of the plan. The management of small enterprises are people likely to be sufficiently knowledgeable to produce a business plan. It acts as an aid for small businesses. The various uses of a business plan for managers are:-
- Clarifies Idea:- Putting together a business plan often acts as a powerful focus bringing together generalized and random thoughts into a clear understanding of the concept and how it can be made to work.
- Finding out the unknown:- The information-gathering process of a plan can overcome many interesting and relevant facts. The day-to-day pressure may obscure much in the business environment for new competitors about open opportunities for cheaper premises, for suppliers new equipment available, successful marketing methods used by others etc.
- Building a team:- Developing a plan can be a catalyst to promote a feeling of participation among all in the business. A business plan provides a useful forum for all the people which are involved in small enterprises to express their ideas and feelings in a way that develops a spirit of teamwork among them.
- Owners:- The managers of small enterprises may be owners also and take a keen interest in the planning process, wearing the shareholder’s hat. A plan may be proposed for equity partners. They may be either a sleeping partner looking for a good investment or an active partner that wants to join an existing small business. They may be lenders in venture capital companies who take an equity stake in return for providing loans.
The business plan would help owners in the following ways:-
- Assessing the feasibility of the business:- Hypothetical testing the feasibility before trying the real things is very important as you may have to pay much higher if you make a mistake after starting the business so one should try first on papers.
- Setting objective and budget:- You need to have a clear financial vision and set a budget according to it beforehand to avoid any complications in future.
- Lenders:- The traditional receipt of the business plan is the bank managers. It is even true that major banks encourage the production of a business plan to justify the sanction of loans and also after you present your formal business plan the private individuals and the venture capital companies decide whether to invest their money in your business or not as they also don’t want to lose their hard-earned money.
Wondering how to prepare a business plan? Here are the detailed steps by which you can prepare an excellent business plan:-
- Preliminary investigation:- The first step for the preparation of a business plan is a preliminary investigation. To create an effective plan you need to:-
- Seek professional advice.
- Draw key business assumptions on which your plan would be based.
- Scan the environment.
- Know the strength, weakness, opportunities and threats.
- Conduct a functional audit.
- Idea Generation:- The next step is idea generation. For satisfying the demand of the existing as well as potential customers you need to have a new idea, concept, product or service. You can even modify the existing product to have a distinct identity of your business. The various sources of new ideas are consumers, employees, dealers, retailers etc.
- Environmental scanning:- Both the internal and external environment must be analyzed to know the prospective opportunity and threats to your business. You must collect such information carefully to avoid any obstructions.
- Feasibility study:- Such a study is done to know whether the proposed project would be feasible or not where you want to set up your business enterprise.
- Project report preparation:- Project report is a written document that describes the strategies that will be involved in starting and operating your business. It is a step-by-step report prepared after environmental scanning has been completed and when feasibility studies are being carried out.
- Evaluation, review and control:- This is the last step in the process of preparation of a business plan. You need to continuously evaluate and review your plan to keep up in this dynamic and highly competitive environment. You have to adapt to the technological changes and introduce changes in your business strategy too.
Now after knowing the prominence of a business plan here are some of the business ideas that require an investment of one lakh only:
Broadly India can be divided into three parts based on population and growth:
- Metropolitan cities:- A city is said to be a metro city when the bracket of the population is more than four million. The power of attraction of these cities is much greater than others. Delhi, Mumbai, Chennai, Kolkata etc are some of the Metropolitan cities. Metropolis means mother city. The cost of living is higher in these cities.
Some of the advantages of Metropolitan cities for your business are:-
- Better workforce:- There are plenty of job opportunities in metro cities as a result majority of people are attracted toward these cities. Thus you can find appropriate employees both in terms of skills and qualification for your business.
- Mass transportation:- Easy transportation makes it a cakewalk to get raw material for your business and transport your goods to other parts of the country easily.
The best business idea that would work in Metropolitan cities is a day child care:
In Metropolitan cities both parents are busy with their job and are unable to take care of children during the day. They need someone who can take care of their child while they are away. As per research one of every third family belongs to the nuclear family and inviting grandparents or hiring a nanny are not preferred by the parents. Thus daycare is the best option left with the parents. All you need is a license, adequate space, basic facilities and most importantly the security of children and a little bit of advertisement. You can even transform your home into a daycare center.
Remember positive ambience will have a great impact on your growth. Basic facilities would include a playground, clean washroom, beds kitchen for a tasty and nutritious diet.
A dense human settlement with definite boundaries and most inhabitants belong to the non-agriculture sector, having a population of at least 50,000 people is termed as a city. In my view, the food truck business is the best plan for cities.
Food trucks are becoming very popular these days and you can even have one if you love cooking. It is one of the most profitable businesses into which you can tap your funds. Major Investments you will need for licensing and permits. Just an investment of 1 lakh is that you need to start this venture and all other expenses would be for procuring raw materials, manpower and for vehicles. To cut down your cost instead of purchasing the commercial vehicle you can buy second hand or can buy on hire- purchase.
As far as you are concerned about your raw material you can tie up with a wholesaler to get a discount. You need to have an excellent manpower so as the taste of your dishes leave an everlasting impact on your customers. If your family members are helping you out then the expenses of manpower would also be saved. This saved cost could be used for other things.
Towns are an area which is larger than villages but smaller than cities. The density of the population should exceed 5,000. There are over 7,935 towns in India in which approximately 377 million people live. The best business plan for town is the tea stall business.
One of the most popular business ideas that would flourish in the town area. You don’t even have any prior knowledge to start a tea stall and moreover, you don’t need any license. Just a right combination of two things and you are ready to go they are:-
- Right location
- Procurement of raw materials
The cost of making one cup of tea is just Rs.2 and you can keep a profit margin of Rs. 3 to 5 in each cup and you even have to decide on various complementary and supplementary products that you will offer at your stall. Do check out places where there is more rush like maybe near the bus stand, railway junction etc. Most importantly, focus on hygiene.
These are some of the business ideas that you can opt for to earn high revenue. Make a good blueprint of your business and bring out the entrepreneur which is hidden inside you, your business would surely do wonders.