Business Planning and Business Plans
Business planning is an essential requirement in starting, managing, and growing a small business. By developing and using a business plan, it can simplify decision-making, help you identify, set and achieve goals, and it can help you deal with problems before they get out of hand. Writing it will help organize and consolidate ideas so you can better promote your business. A written plan will save you time and work. The plan will help you get better contributions from others, including your bank, business consultants, and prospective suppliers or investors, because you can give them more complete information.
A business plan describes how you are going to run your business. It outlines exactly what your business is, how and where you will run it, how you are going to finance it, how it will affect cash flow, and how much it will earn or lose. In your plan, you should show the risks and strengths of your business, describe the market and competition, outline your long-term goals, and set milestones you plan to use to measure your achievements.
Business plans come in many shapes and sizes. Some sections that are common for most business plans include:
- Business Plan Summary
- Business Description
- Market Analysis
- Marketing Plan
- Management and Operations
- Financial Projections
The most important results of developing a business plan are that you know the answer to these questions:
- Does the market place need the product or service I want to provide?
- What do I do better than anyone else?
- Do I have sufficient financing or capitol for this business to succeed?
- Do I know where I want this business to go?