|A man works on a business plan|
Since the middle of last year, indicators of successful self-employment have declined. 5.47 million Koreans are self-employed and loan delinquency is on the rise. The loans from self-employed businesses have surpassed 600 trillion won. The Korea Institute of Finance warned that ‘unprepared entry into a self-employed business can be a disaster’.
Many experts say that it is necessary to draw up a business plan carefully in order to start a successful business. A business plan is a stage in which you draw your own business map to receive government or investor
s support before you start a business. A well-made business plan can continue to be used as a guide to understand where a business has come from and how to continue growing.
Start-ups are encouraged to document 10 steps in line with their business plan. The ten steps are composed of environmental analysis of start-ups, selection and introduction of items, business feasibility analysis, market research, commerce, and location selection, funding planning, documenting business plans, hiring employees, carrying out tax documents, and administrative procedures.
To start a business, an environmental review is needed first. Environmental review can be divided into internal and external environments. The internal environment is a review of the founder himself, and the external environment is an analysis of the conditions of the social or institutional atmosphere surrounding the business. Next, write down the reasons and motives for choosing to start a business. You can identify the feasibility and stability of start-up ideas and introduce the business scope to investors. Too broad of an idea can fail due to high initial investment costs. Too small of a product can lead to losses due to cost factors later.
Business feasibility analysis is to examine merchantability, marketability, profitability, and stability in detail. For these, analyzing SWOT is important. SWOT is a method used to objectively evaluate Strengths, Weaknesses, Opportunities and Threats. The next step is market research. This step is important to analyze the market size of the item or the portion of the product that has an advantage in comparison with other products. It also evaluates the target customer and predicts changes in trends.
Commercial districts should be analyzed as a necessary part of both the local market and the knowledge of the industry. For example, a cafe or restaurant for adults which is located nearby an elementary school is poorly planned. Funding will be the next plan after selecting a location. Many people feel funding is one of the most difficult parts. Unless a business is prepared with 100% your own money, a funding plan must be established. If you ask for money without a distribution or repayment plan no investors will want to lend.
In the case of stores, the interior should be tailored to customers. Marketing, background
s music, scent, and lighting can help sales rates. It is also important to select a workplace that matches the conditions of the environment. For example, you don’t have to rent an office on the first floor if you don’t need outsiders to come in. The next step is checking the administration procedures. There are some procedures that must be done in order to conduct business. This includes registration or approval by the government. Having these procedures in place helps a business run smoothly.
When someone starts their own business, it’s easy to think that there are no people who can help and coach them. However, these days, there is a government association that provides educational support needed for the undertaking. Participation in such education can help start-ups meet with fellow operators in the same situation. It is advantageous to get education related starting a business.
After stages 1-10, there will be a lot of data, and the processed information will appear in the business plan. Business plans are the most important thing to succeed in doing business. A well- made business plan will be like a compass in the future for your business journey. If you refer to your business plans while in business, you will take one more step toward success.
By Park-Junho, reporter
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