What is the Purpose of Having a Business Plan? Business plans exist for many purposes that include the following: Maintaining focus and clarity — Having a business plan to refer to is important in the affirmation of your smart goals and in maintaining clarity of the direction in which you intend to run the business. Financing — Part of a business plan showcases the profitability margin or profit potential of a business.
Like many successful businesses have done, you can launch your business idea without the benefit of a formal business plan—but this applies only if you have all the funds you need or you are just testing the business waters to see how it turns out.
Why You Need a Business Plan for your Small Business Writing your business plan is not the end of your business planning process because business planning is a never ending process.
If you are just starting a business, having a well-written business plan shows that you have really done your homework.
And if you are planning to expand an already established business, it demonstrates that you have carefully considered the pros, cons and odds; and focused on the development of the business.
If you are risking your capital, time, resources and effort to start a business; then you certainly need a business plan to help you mitigate against the risk involved.
If you are already a business owner but you started out without a business plan, then you definitely need to invest in getting a business plan; especially if you want to take your business to the next level. If you would need to obtain financing from third parties either now or in future, then a business plan is indispensable, as it sells your idea and elucidates the opportunities it presents.
It arranges strategic alliances, attracts key employees, boosts your confidence, and helps you remain focused.
From the table of contents to the financial tables, a business plan covers a lot of ground. A formal business plan is just as important for an established business, whether small or big, as it is for a startup. And it serves the following critical purposes: It helps you clarify, focus, and research the prospects of your proposed startup or expansion idea.
It provides a considered and logical framework within which your business can develop and pursue business strategies over the next few years.
It offers a benchmark against which you can measure and review the actual performance of your business. It serves as the basis for discussion with third parties such as creditors, investors, shareholders, agencies, etc. This, of course, is the main reason why we are discussing business plan writing in this eBook.
Just as no two businesses are alike, so also are business plans; some aspects of a plan will be more relevant to some businesses than to others.
So, it is very important to tailor the contents of a business plan to suit individual circumstances. Nonetheless, most business plans follow a well-tried and tested structure, and general advice on preparing a business plan is universally applicable.
However, your business plan should be a realistic view of your expectations and long-term objectives for your startup or small business. It provides the framework within which it must operate and, ultimately, succeed or fail.
For you and other entrepreneurs seeking third-party support, the business plan is the most important sales document that you will need to raise finance for your startup or small business. Although preparing a solid, comprehensive business plan will not guarantee success in raising funds or mobilizing support for your business, lacking one will always result in failure.
The planning process forces you to understand more clearly what you want to achieve as well as how and when to take each step towards achieving it. Of course, it is much easier to fold a sheet of paper than it is to fold a business. Now how can you make your executive summary stand out? What are the most important details to include in the different sections of your plan?
How do you present financial projections? You will get answers to these and other questions in this chapter. But when I asked these individuals of their business plan, the usual reply I get is this: I want to take the stress of writing a business plan away from you and most importantly, I want to teach you how to write your own personal business plan without hiring anyone.
This is the sole reason why I wrote this eBook. Yes, the reason I called it a personal business plan is because a business plan should be personal. A business plan should not just be a file or document, it should be your dream in written form.
In fact, I advocate that you write your business plan yourself ; so that it will be engraved in your heart. My Business Plan is Me Now using myself as an instance, if you wake me up in the dead of the night, or you happen to run into me in a restaurant or fast food outlet and you ask me about my business; I will tell you everything you need to know about it.
The reason is because I wrote the business plan myself. Yea, I may work with an accountant or attorney to get the technical facts I need but the bulk work will be done by me.Jul 11, · How to Write a Business Plan for a Small Business. A business plan refers to a written document that comprehensively outlines what your business is, where it is going, and how it will get there.
The business plan outlines in specific terms Views: K.
A business plan, as defined by Entrepreneur, is a “written document describing the nature of the business, the sales and marketing strategy, and the financial background, and containing a.
The place to shop for software, hardware and services from IBM and our providers. Browse by technologies, business needs and services. CALL FOR PAPERS.
The DEFCON 16 Call for Papers is now Closed! The DEFCON 16 speaking schedule is complete, with occasional minor adjustments.! So keep your eye on the Speaker Page and the Schedule Page for all the latest info as it happens. You can also subscribe to the DEFCON RSS Feed for up to the minute news.
Hi Stuar, Your explanation about writing test cases are very good.
Can you please tell me how to write test cases for regression testing. As suppose there is an enhancement in the mid portion of the application and since we will be over with writing test cases .
Writing a Business Plan for Investors – Sample Template CHAPTER ONE – Whoever said you don’t need a formal business plan to start or expand your business was certainly not addressing those who need funds from creditors and investors.