What is a business plan? What is its importance? Does my business really need one?…. You will have the answers to theses questions and gain plenty of insight on just how significant a business plan is.
In essence, a business plan is a document stating what the business is about, its goals, purposes and the directions of the company. It is a road-map or blue-print that acts as a resume for existing and start-up companies. It also aids in securing investments and loans. You should already start to notice the importance of having a business plan. It speaks volumes about your business from all angles.
There are several situations that require the use of a business plan:
Financing from banks, investors and other sources require a business plan. Funds may be needed to start a new business, secure working capital for an existing business and expansions or equity financing to support company growth. Since lenders are concerned with minimizing risks and getting maximum returns on investments, it is important to present strong financial documentation. State the reasons why funding is needed and how the company cash flow will cover the debt.
Existing internal businesses use a business plan as a guide to measure work performance and keep a company consistent with its goals.
In selling a business, a buyer will want to see a business plan that lays out the company strengths, challenges and developments.
Before you sit down to write your business plan, there are a few common things you should make sure you know such as the industry of your business, types of customers, needs and how you will reach out to provide services to your audience. If you need funding, have an idea of whom you want to contact.
Will it be an investor, banker or your personal savings? Make a note of these questions and make sure you can answer them. You want to have a strong business proposal. Be clear, concise and detailed with your answers. Don’t be afraid to review and revise until you are fully satisfied with your plan.
You Business Plan is you right hand guide and partner. It will forever keep you on the right track. Starting and running any business requires skills and dedication. You must be willing to spend countless of hours, putting your heart and soul into maintaining your business…
It all starts with creating a Business Plan that is indisputably clear and concise.
For more detailed information, videos and sample business plans, I’d like to share with you 2 resourceful websites chalked with loads of information.
Check them out at: