Is It Necessary To Have a Business Plan?

by: scott morris

Are you planning to start a new business? Or are you considering expanding your current business and require a bank loan or investment from outsiders?

If you are going to look for an investment of capital it is quite likely that you will be required to have a business plan. If you are starting a business, despite the work involved, a business plan can prepare you for the obstacles ahead and help ensure your success.

A business plan is something that many small businesses fail to create, however, many business owners are adamant that having a written business plan is one of the keys to their present success. Creating a business plan forces you to contemplate possible obstacles to your business and prepares you to find solutions that will help you to overcome them.

To find investors or get a bank loan, they will want to see that you have the experience or resources to run the business. They will want to see your projected income as well as your suggested repayment plan already laid out. Taking the time to do this is not only important for them, but it gives you a measuring tool to verify if your business is growing properly. You can gage your success on how close to the plan your business has actually performed. Perhaps you’ll do worse, or perhaps you’ll do better, either way it helps you determine how well your business is getting on.

If you have never seen a business plan before you may be concerned that is is too difficult a proposition for you to manage on your own.

While there are services available where you can hire someone to write a business plan for you, depending on your needs it may be wise to familiarize yourself with a business plan’s layout. This will not only help you to provide the necessary information, but may encourage you to try your own hand at it.

There’s a free tool at www.bdc.ca which will assist you in creating a business plan. Some of the topics you will be required to explain are your Market, Customer, Competition, Marketing Plan, Research & Development along with financial forecasts. You may consider hiring someone to help you with your financial sheets after completing the written part of the Business Plan.

Your Business Plan will become your guide and silent business partner – indicating where you need to improve and helping you stay one step ahead of your competition. Make it a priority to have this crucial road map for your business.

The Key to a Successful Business

by: rietario daffari

Where would a business be without a business plan?
A business plan sets the course for the future of the
business. It gives the business owner or manager a
sense of direction, listing the objectives and goals of
the business from the outset.

Writing a business plan requires a lot of time; a
successful business plan cannot be a rush job. Once
an idea for a business has been developed,
researching the many facets of owning and operating a
business is the next most important step. Your local
county council should be able to assist you with
accessing the required information of a legal nature, as
should your local business enterprise center. The rest
of the research will be up to you! You will need to
research products for your business, at the same time
as researching other enterprises that may be in direct
competition to you. Furthermore, you need to research
the market to determine whether there is a need for
your business product or service.

With the research out of the way, sitting down to write
a business plan requires focus. Your business plan will
become the bible of your business for at least the next
3 to 5 years so it is important to make it clear, concise
and comprehensive. Most enterprises will complete a
SWOT analysis to determine their strengths,
weaknesses, opportunities and threats of the
business. Whilst the business is in infancy,
brainstorming would be the most accurate way of
performing the analysis, as the business would not yet
have customers and profitability would not yet have
been experienced. However, it is very important to
remember that a good business plan is flexible and
can be changed as your business experiences growth.

After completing a SWOT analysis, you will need to
determine your business name if it has not already
been decided (and register it), as well as your vision
and values, your business goals and long term mission
and how you will achieve all of this when the business
is up and running. Writing every thought down
regardless of how minute you feel it is will allow you to
collate everything pertinent to your business for easy
reference in the future. Who knows, the thought or idea
that you have today may well turn into a million dollar
idea in a years time! Maintaining good records and
following a strong business plan is the key to a
successful business!

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