importance of business plan
Many people think that they do not need to make a business plan. Some without a business plan but with perseverance, effort, use of their business capabilities and skills they have created thriving jobs. But what percentage of these people succeeded?
Does preparing a business plan guarantee success? No. But having a business plan is the roadmap to success.
What is a Business Plan?
A business plan is a written document outlining what you plan to do as a business owner intend to do and how you plan. Such as Marketing plan, operating model, and many other details necessary for success It becomes.
If you are solely planning to run a small business, you do not need to prepare a business plan. But if you want to spend a lot of time, money, and resources on your business to succeed, you will need a business plan.
What is the purpose of a business plan?
There are many reasons to prepare a business plan. The most important of them is to present your vision and mission.
The business plan includes main issues, such as:
business goals, business strategy, potential problems that your business may face, solutions to these problems, the organizational structure of the company, and the amount of capital required for the business you are.
This information is significant to many people associated with your firms, such as shareholders, founders, employees, and customers.
Other reasons to prepare a business plan include:
- Provide clear and concise goals of the business
- Commitment to the roadmap for your firm
- Provide corporate activities and social responsibility of the firm
- Present plans of the firm
Why is a Business Plan Important to a Business?
A business plan provides insights into a business at any stage of a firm’s lifecycle.
How to do a Business Plan?
Before writing a business plan, it is important to research to get a clear image of the future of your business. Get to know your competitors and identify your unique selling point.
The main parts of a business plan
- Executive plan summary
- Company Summary
- Products and Services
- The executive and managerial team
- Marketing Plan (Market Strategies, Market analysis, Competitive analysis)
- Sales program
- Organizational Structure
- Operational plan (plan implementation schedule)
- Financial planning and funding sources