A business plan is any plan that works for a business to look ahead, allocate resources, focus on key points, and prepare for problems and opportunities. Unfortunately, many people think of business plans only for starting a new business or applying for business loans.
But they are also vital for running a business, whether or not the business needs new loans or new investments. Businesses need plans to optimize growth and development according to priorities.
Why to have a business plan
A business plan is like a map and a compass for a business. Without it you’re travelling blind. With a plan you set objectives, establish priorities, and provide for cash flow.
You need a business plan if you’re looking for business investment.
The plan won’t get you the investment, but not having a plan will mean you won’t get investment. Investors require a business plan. They invest in the people, the idea, the track records, the market, the technology, and other factors; but they look to the business plan to define and explain the business. You need a business plan if you’re working with partners. The business plan defines agreements between partners about what’s going to happen.
You need a business plan if you’re applying for a business loan.
Most banks require it, and even those that don’t strictly require it expect it. They expect it to be a summary of the business, with some predictable key points.
You need a business plan to communicate with a management team.
The day-to-day business routine is distracting, problems come up, opportunities appear, and commitments should be followed and tracked.
• How do you know where you are in business without establishing where you started and where you intended to go?
• How can people commit to a plan they can’t see?
You need a business plan to sell a business, not only to the outside world but also... [continues]
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(2008, 08). Guideline to a Business Plan. StudyMode.com. Retrieved 08, 2008, from http://www.studymode.com/essays/Guideline-Business-Plan-159556.html
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