Developing a Business Pan
Join now to read essay Developing a Business Pan
Developing a Business Plan
Overview
The importance of planning should never be overlooked. For a business to be successful and profitable, the owners and the managing directors must have a clear understanding of the firms customers, strengths and competition. They must also have the foresight to plan for future expansion. Whether yours is a new business or an existing business in the process of expanding, money is often an issue. Taking time to create an extensive business plan provides you with insight into your business. This document can serve as a powerful financing proposal.
This article will take you through the step-by-step process of developing a business plan. A business plan is very specific teach particular business. However, while each business needs a unique plan, the basic elements are the same in all business plans. To complete an effective business plan you must dedicate time to complete the plan. It requires you to be objective, critical and focused. The finished project is an operating tool to help manage your business and enable you to achieve greater success. The plan also serves as an effective communication tool for financing proposals.
At the completion of this exercise, you should be able to:
Describe the importance of a business plan
Identify the elements of an effective business plan
Write a business plan
Outline:
Why Write a Business Plan?
Who Should Write the Business Plan?
Business Plan Components
Executive Summary
The Product/Service
The Market
The Marketing Plan
The Competition
Operations
The Management Team
Personnel
Financial Data
Supporting Documentation
Summary
Resources
I. Why Write a Business Plan?
Why should a business go through the trouble of constructing a business plan? There are five major reasons:
The process of putting a business plan together forces the person preparing the plan to look at the business in an objective and critical manner.
It helps to focus ideas and serves as a feasibility study of the businesss chances for success and growth.
The finished report serves as an operational tool to define the companys present status and future possibilities.
It can help you manage the business and prepare you for success.
It is a strong communication tool for your business. It defines your purpose, your competition, your management and personnel. The process of constructing a business plan can be a strong reality check.
The finished business plan provides the basis for your financing proposal.
Planning is very important if a business is to survive. By taking an objective look at your business you can identify areas of weakness and strength. You will realize needs that may have been overlooked, spot problems and nip them before they escalate, and establish plans to meet your business goals.
The business plan is only useful if you use it. Ninety percent of new businesses fail in the first two years. Failure is often attributed to a lack of planning. To enhance your success, use your plan! A comprehensive, well constructed business plan can prevent a business from a downward spiral.
Finally, your business plan provides the information needed to communicate with others. This is especially true if you are seeking financing. A thorough business plan will have the information to serve as a financial proposal and should be accepted by most lenders.
II. Who Should Write the Business Plan?
You, the owner of the business, should write the plan. It doesnt matter if you are using the business plan to seek financial resources or to evaluate future growth, define a mission, or provide guidance for running your business — you are the one that knows the most about the business.