Business

Benefits of a Business Plan

By November 5, 2020 No Comments
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If you are intending to start a business you should plan from the beginning.  This means you should do your business plan before you open your doors for the business.

When developing a business plan it is important that you, as the business owner, take an active role in its preparation.  Consultants and advisers can assist in the preparation of the plan but it must be thought through completely by the person who will be running the business.  A pilot may consult engineers, fuellers and technicians, but when the plane is up in the air, that pilot is alone and needs the skills to ensure a safe and successful journey.  It is the same scenario for the business operator and the business plan.  What is the use of a document, if the operator knows little about what that document means?

A regular review of a business plan is also very important.  It is suggested that this occurs every month and that between three and four hours is spent updating it.

To see how realistic the plan is, a small business owner can test the plan under normal trading conditions and review and adjust it accordingly.

A good business plan should be very specific about the products to be developed and the markets to be addressed by the business.  The small business operator should not skimp on the time spent on these issues.

It is also important that all sections of the plan are consistent with each other.  For example, the pizza shop owner must ask whether there will be enough funds to implement the marketing strategies or whether the planned production capacity can be expected to meet demand.

If the small business owner is presenting the plan to potential investors or bankers it is important to remember the following.

Firstly, the summary is critical.  Most readers and potential investors will turn to this first and may not get past this point.

Quantity does not equal quality.  A well-written plan should be succinct, with extensive financial information.

It is also important to remember that first impressions are very important.  Correct spelling, grammar and punctuation are critical and the plan should be well organized.

By the same token, a business plan writer should also be aware that the plan does not look too expensive or showy.  This may be an indication that precious financial resources have been spent frivolously.

Finally, it is advised that the writer of the plan does not use non-assertive language such as “might”, “probably” as they may convey a negative or passive image.

In summary, the business plan is the prospective small business operator’s most valuable tool.  It will help to systematically think through all aspects of the business and prepare for any events which are initially unforeseen.

The business plan is the map for a business’s successful journey.

Write a Business Plan

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?  If you are intending to start a business you should plan from the beginning.  Fail to plan-plan to fail.

 Want to know more?

For a very low investment, why not download a copy of:

How to Write a Business Plan’ eBook

Five essential elements to your business success. 

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