The first thing that goes into a business plan is the nature of business. This is where the niche market or need that has been identified and is to be exploited. An entrepreneur has to know whether people want this need be provided to them. Write down what the business will be providing. The full description of your services or products should be clearly stated. If it’s a real estate agent, identify what the business will focus on. State if you will deal with renting, selling, types of property that is residential or commercial. Some estate agents also provide mortgaging, insurance and surveying services.
Consider if you business will deal with a high priority need. What order of priority is the good or service. High priority products are things like food and shelter. The higher the priority, the business could have a good start. Low priority products are often seen as being luxurious in nature. Having a travel agency, jewellery, home theatre businesses are given a low priority ranking as they are not essential to anyone’s survival. Such businesses often have a slow start and they are rewarding in the long run.
High priority products however basic as they are can be classfied in relation to the niche market you are concentrating on satisfying. If it is a restaurant, depending on the niche market, it could focus on a high end clientele or normal customers. With this, prices will vary considerably to reflect clients status. The profits will also be higher if dealing with a high end high priority product. Therefore make sure you defind the purpose of the business.
