A business plan
is a written description of your business’s future. That’s all there is
to it–a document that describes what you plan to do and how you plan to
do it. If you jot down a paragraph on the back of an envelope
describing your business strategy, you’ve written a plan, or at least
the germ of a plan. Business plans can help perform a number of tasks for
those who write and read them. They’re used by investment-seeking
entrepreneurs to convey their vision to potential investors. They may
also be used by firms that are trying to attract key employees, prospect
for new business, deal with suppliers or simply to understand how to
manage their companies better.
So what’s included in a business plan, and how do you put one together? Simply stated, a business plan conveys your business goals,
the strategies you’ll use to meet them, potential problems that may
confront your business and ways to solve them, the organizational
structure of your business (including titles and responsibilities), and
finally, the amount of capital required to finance your venture and keep
it going until it breaks even.Sound impressive?
It can be, if put together properly.
A good business plan follows generally accepted guidelines for both form and content. There are three primary parts to a business plan:
- The first is the business concept, where you discuss the industry, your business structure, your particular product or service, and how you plan to make your business a success.
- The second is the marketplace section, in which you describe and analyze potential customers: who and where they are, what makes them buy and so on. Here, you also describe the competition and how you’ll position yourself to beat it.
- Finally, the financial section contains your income and cash flow statement, balance sheet and other financial ratios, such as break-even analysis. This part may require help from your accountant and a good spreadsheet software program.
- Executive summary
- Business description
- Market strategies
- Competitive analysis
- Design and development plan
- Operations and management plan
- Financial factors
How Long Should Your Business Plan Be?
Depending on what you’re using it for, a useful business plan can be any length, from a scrawl on the back of an envelope to, in the case of an especially detailed plan describing a complex enterprise, more than 100 pages. A typical business plan runs 15 to 20 pages, but there’s room for wide variation from that norm.
Much will depend on the nature of your business. If you have a simple concept, you may be able to express it in very few words. On the other hand, if you’re proposing a new kind of business or even a new industry, it may require quite a bit of explanation to get the message across.
The purpose of your plan also determines its length. If you want to use your plan to seek millions of dollars in seed capital to start a risky venture, you may have to do a lot of explaining and convincing. If you’re just going to use your plan for internal purposes to manage an ongoing business, a much more abbreviated version should be fine.
This is a really informative & also helpful post. for who are a businessman. there are to Build A More Affective Business Plan Thanks for sharing
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