Every person who owns and operates a business should have a plan.
If you are intending to start-up a business you should plan from the beginning. This means you should do your business plan before you open your doors for business. It can be prepared when conducting your business on a part-time basis. In fact, the necessity for it is being stressed more and more by lending authorities who finance business ventures.
It is a document that covers the background, current position and future direction for a business. It combines the three main components of business – marketing, operations and finances.
A business plan is like a road map:
- Where am I now?
- Where do I want to be in 18 months time?
- How am I going to get there?
Those who ‘FAIL to PLAN – PLAN to FAIL’
It assists you in thinking strategically about the future of your business and aids organisation and control. It also increases the likelihood of being able to obtain finance to start-up your business and additional finance to grow your business.
Very few small business operators perform this key management task well, and many do not do it at all. Most small business owners are not inclined to plan their businesses any further than a few days or weeks ahead and tend to survive by being good at reacting quickly to change and threats as they occur. The most common excuse given is that they are just too busy running their businesses day-to-day to sit down, think about, and develop a business plan.
In many cases the greater the need for it, the less opportunity there seems to be to do it. Many small business operators are put off by the discipline of preparing and actioning a business plan. They see it as academic, too complicated, something they should see accountants about and which will cost more than they can afford. The popular belief is that small business operators do not need it. The truth is that lack of planning is a proven major cause of small business failure.
For the established business which is facing difficulties, it is better for the owners to leave the operation of the business to employees for a few days while they take appropriate action.
There is no perfect format for a full written business plan it must be personalized and specialized enough to convey details of you and your business idea.
The objective is to communicate your ideas clearly.
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-fail to plan – plan to fail-
