In: Mechanical Engineering
Hi, thanks for the question.
The first part of a business plan is to know that there is a market. Considering that you have done the research on the same, and identified the gap in the market. The gap in the market is where the opportunity lies. Once you have identified the gap, its time to get down to working on a business plan.
For the purpose of this question, let's consider that your business targets faster delivery. So, let's proceed with a business plan for the same. The first step is to finalize your team. The partners in the business should be chosen in a way that they can complement your weaknesses. Once you have finalized your partners, its time to incorporate. Depending on what value each one brings to the table, you decide the equity you all get.
Once that is done, the best step is to keep costs low. So, for that, you need to scope possible places to set up the office for your business. Make sure it is in close vicinity to where you want to start your operations and still has a low rent to make sure costs are low. Prepare a finance sheet for the entire next year. New businesses often need to work on tight budgets and hence maintaining a financial plan helps to stick to those budgets.
After you finalize the financial budget, you have most probably already thought about what you will charge for your services. The prices have to be competitive but still, make sure that it turns a slight profit for you. Remember, even a dollar extra in profit is still profit. Never do things for free besides a trial run. That only gives off the impression that your business is desperate.
Once that is done, its time to buy your first 2 motorcycles, build a website, and list yourself on local directories. Start with local shops and businesses that need to get deliveries done. This will include giving them a few trial runs to build trust and prove your competence. Once that is done, you need to work to make sure that all deliveries from the suppliers are on time and delivered in pristine condition which makes the buyer and the seller happy.
Get that done like clockwork and that emphasizes trust with the people and your clients. Once you see that your business is starting to gain traction, its time to start getting the word about your business out there. Start by creating social media handles, running ad campaigns on search engines, and making sure that the people you are targetting get relevant information about you. It will start off rocky, but it will expose your business to new probable clients. On your website and directory pages, try and incorporate testimonials and reviews from your clients. This is because when people appreciate you, it has a much more resonating effect than yourself talking about your service.
Social media campaigns will start to generate more leads and conversions for your business. In a location like Ghana, access to social media is limited, yet you can still market your business. Start putting up small billboards in known areas that you operate in about your business. It should have a clear address, phone number, and the name of your business, along with a one-line description of what you do.
Once that is done, and you see your business growing, its time to expand your fleet. You can invest in buying 2-3 extra motorcycles along with drivers for those vehicles. Make sure that your business is cash positive, which means, you are earning more than you spend. This will ensure that you always maintain a safe deposit in times of bad markets, and yet have enough to sustain your business.
Once you have achieved a fair bit of traction, its time you will want to take your business big, but chances are, your current finances do not allow you to do that, so, its time to get some investors. Like most new businesses, the initial investments to kickstart the business come either from the partners or your family and friends in good faith. These people are called angel investors. They believe in your idea and help you with the finances for the same.
In the business world also, there are angel investors. For approaching angel investors, you need a solid business plan. This business plan should involve the details about your team, your vision, the problem you are aiming to solve, your solution, your USP, what business milestones you are targetting in the number of years, and what is your plan to achieve those milestones. You will also have to include data about your business history, the kind of traction you have built and what is it that you can offer the investors in exchange for their investment and then plan your approach.
These angel investors take a look at your business history, the kind of traction you have, the vision that you are targetting towards in the form of a business plan/report (which is why you have approached them) and then work out a "valuation" for your company, which is basically what they think that the business is worth. At that valuation, they usually offer an amount in exchange for equity in the business. Now, the most important thing to ensure is that you get an investor who can also function as a mentor, and yet does not own so much of the business that you end up becoming the employees.
So, make sure that the valuation and the equity are something that can be worked upon. Upon getting an investment amount, you will probably have to start implementing the steps you mentioned in your business plan report. And the entire steps repeat in a new city. But, this time, you can use the learnings from your previous experience and implement improved strategies for customer acquisition. Make sure that despite having investor's money, you have to make sure to use that expense wisely. Several times it happens that upon receiving investments, the businesses go on a spending spree and usually burn out faster than they thought. So, still approach everything with a frugal mindset and build the business.
Once you have done that, it will start generating revenue faster than it did the first time and you can start growing your business, hence becoming the biggest delivery agent in Ghana.