A business plan is basically the blueprint of your business, its objectives, strategies, target market and financial forecasts. It helps in identifying goals and serves as a firm’s resume. It helps one allocate resources properly, handle unforeseen complications, and make the right decisions. A business plan is an essential roadmap for business success. This document outlines the route a company intends to take to grow revenues.
Must haves in a business plan:
- Overview of a company in terms of its business, products or services
- Marketing Plan
- Some information about each member of the management team and their role in the company
- A company’s financial plan
- Target Market
- Expected future costs, expenses, cash flow, profitability, etc
- A review schedule
Why a Business Plan?
ü To give you control over your Business: Developing your business plan helps you to step back and look at what’s working in your business and what you can improve on. Taking the time out of your business to plan will give you a sense of control about the future of your business and pay off in the long run!
ü Setting Priorities: A business plan will help you work out the goals you want to achieve, and the strategies to achieve them. You can focus your resources and energy on what you need to do, rather than spreading yourself too thin.
ü Seek investment (or finance) for business: A business plan is vital when trying to convince lenders that you should be taken seriously. Investors will only risk their time and money if they’re confident that your business will be successful and profitable.
ü Create a new business. Use a plan to establish the right steps to starting a new business, including what you need to do, what resources will be required, and what you expect to happen.
ü Decide whether you need new assets, how many, and whether to buy or lease them.