What is a Business Plan?
You can pretty much define a business plan as a
resume for your business idea in mind. Some may say it’s like your
company’s calling card. When you need money to start your business, or
when you need an office space, your business plan is what will do most
of the talking to convince your investors / lenders or property
managers to believe in your business and give you what you need.
Why is it important to have a
Business Plan?
The time that you spend on writing a solid
business plan will pay for itself in corporate strategic and tactical
clarity as your business grows. A solid business plan: (not in
particular order)
- Allows you to describe your vision / concept in
writing, helping your potential investors to understand and believe in
you; it serves as a basis for discussion with third parties such as
shareholders, agencies, banks, investors…etc.
- Allows you to identify the structure of your
business, giving you the chance to focus on the big picture. Your
business plan is the “framework” which your business must operate
within. A solid business plan provides a considered and logical
framework within which a business can develop and grow with business
strategies in the long run (not for just short-term growth).
- Determines the startup and managing costs.
- Clearly defines your target audience and
provides detailed research on your target market.
- Identifies potential opportunities and
obstacles that the business may encounter down the road.
- Identifies the strengths and weaknesses of your
business and your competitors.
No businesses are the same, and no business plans
are the same. Your business plan is like your business blueprint; it
should be unique. While it is important to be able to illustrate your
business concept well enough for others to understand what you hope to
be doing, the business plan is essential for your own use. It is about
the process of developing the business plan; the process helps you to
focus on exactly what you are trying to achieve. It will give you a lot
more clear vision of the entire structure of your business as you
develop your business plan through detailed research and planning.
A business plan consists of the
following parts:
Executive Summary
- Briefly describes the business concept
- Highlights the important financial points of
the business such as sales, profits, cash flows, ROI
- Clearly states the capital needed to start the
business and to expand
- States legal information about the business,
the owners and key personnel.
Business Description
- Describes the business structure on how it
operates / profits
- Describes the nature of industry in which the
business plans to operate
- Identifies the business’ current position and
future possibilities
Market Strategies
- Defines the target market
- Defines the strategies the business plans to
use in order to tap into the target market
- Describes the pricing of products or services
with respect to the demand of the target market
Competitive Analysis
- Describes the competitors in your target market
and how you plan to obtain your share of the market
- Analyzes your competitors in the following
categories: product, distribution, pricing, promotion, and advertising.
Design and Development Plan
- Describes the steps the business will take to
carry out its plan with scheduling and cost analysis.
- Identifies the risks during the development
period
Operations and Management Plan
- Describes the strategies the business will
implement in order to operate and grow effectively
Financial Statements
- Defines all the financial aspects of a business.
Article Source: http://
www.articlesbase.com/entrepreneurship-articles/your-business-
plan-your-business-blueprint-902224.html
About the Author
Aaron Lee
Business Growth Strategist
The
Entrepreneur Journey of a Business Minder
|
