The business description part of the business plan provides an overview of the proposed side hustle. It should cover information on the following sub-headings.
- Business Ownership
- Business Concept
- Business Location
- Form of Ownership
- Products or Services
- Industry
- Entry and Growth Strategy
Business Ownership
The focus questions for business ownership are:
- Who will own the business? What is his or her experience?
- How does the experience relate to the proposed business?
- If one does not have the relevant business expectations, how will he or she address the gap?
In the write up begin by stating the name of the proposed business and name of the person who will own the business. Indicate the age of the person and their level of education. Explain what he or she is doing currently. If in full-time employment, state the name of employer, position at work and working experience.
Explain whether the person has any experience in running the proposed business. If they have no experience, explain how do he or she intend to close the experience gap
Business Concept
The focus questions under business concept are:
- Under which name will the business be operated?
- What was the reason for choosing the name?
- What is the justification for starting the business?
- What products or services will the business offer?
- Who will be the target market?
When writing based on the answers to the focus question, state the business name explaining why it was chosen. Make a justification for the starting of the business. A possible justification can be to meet the rising demand for its products. Another one may be complement existing businesses near where it is located. Also, the business could be aiming at serving a market segment that has been ignored.
Business Location
The focus questions on the business location are:
- What is the general and neighbourhood area of the business?
- In which business premises will be located?
- Why was the business location selected?
- What shall be its contacts?
Under business location, explain the general and neighbourhood area in which the side hustle will be located. In the explanation show that the target customers reside in the area. Give details of the building, floor and road or street for the side hustle. Give reasons to support the choice of the location.
Provide the postal address, website or Facebook page, telephone numbers of the side hustle
Form of Ownership
The focus questions under the form of ownership are:
- What will be the form of ownership of the side hustle?
- If it is a partnership, what will be the percentage of each partners’ share of ownership?
- If it is a limited company, what will be the percentage of shareholdings?
There are various legal forms of ownerships; For a sole proprietorship, state its single ownership status. In case the side hustle will be a partnership, indicate the percentage of each partners’ investment. For a limited company, state who the shareholders will be and the number of shares they will hold.
Products or Services
The focus questions under products/services are:
- What products or services will the business offer?
- What are the key characteristics?
- Who will be the target customers?
Explain the characteristics of products or services that the side hustle will offer to target customers. Discuss how the products or services will meet customer needs. If products have unique features enumerate them as a competitive advantage.
Industry
The focus questions under industry are:
- In what industry will the business be?
- What are the characteristics of the industry
Identify and state the industry in which the side hustle will be operating. For example, a small restaurant will be in the hospitality industry. On explaining industry characteristics, consider factors like type and level of technology in use, type of employees required and social trends that will influence the growth of firms in the industry.
Entry and Growth Strategy
The focus questions under entry and growth strategy are:
- How do you intend to enter the market?
- How do you plan to grow the business?
Entry strategy may be explained by the competitive advantage that the side hustle may have to enable it to penetrate the market. For example, if other small restaurants do not offer certain foods which are in demand, the side hustle can begin off by selling those foods.
Growth strategy is about the approach that will be used to grow the business. For example, the purchase of new commercial equipment for a salon can enable it to offer more services that will lead to business growth.
NEXT ON SIDE HUSTLE BUSINESS PLAN
These are quite a handful for you to completely follow, I’ll allow you tomorrow to take time and to review the information and prepare your business description. Check back on Thursday for an article on developing your Marketing Plan.
