Monday, 15 July 2019
5 Top Reasons why you should have a Business plan
A business plan can help entrepreneurs be their owners, managers, lenders or investors, to figure out many key business elements, including:
1. What you will need to do to get started and what resources (time, money, etc) you will need to expand. What amount of money and method of financing will be required to make the plan work? A detailed cash flow projection with underlying assumptions is a vital ingredient to precisely quantify earlier guess estimates of the likely funds needed.
2. Assess the viability and feasibility of the business or project.
3. What it will take for your business to make a profit and how long that will take
4. Setting objectives and budget. What is the overall direction and financial target set by the plan? Having a clear financial vision with realizable budgets is a minimum requirement of everyone involved in a plan.
5. What information potential customers, vendors and investors will need to know in order for you to market your business effectively
Writing your business plan also forces you to objectively and realistically think about your proposed business/idea. When you are done, you will have a more practical idea of the resources and effort it will require and whether it is a venture you want to pursue at this time. Don't be afraid. The process of sitting down and writing out a business plan could birth the creative genius in you and lead you to new business strategies you may not have considered previously. You'll also find that having your business goals written down enables you to refer to them at any time. This will ensure you don't lose sight of your original focus once you do start your business.
Though, you may engage the services of professional to help with the editing of your business plan, but only you can write the best, most effective plan for your own business/idea.
Essential Elements of A Good Business Plan
There is no single format for writing a business plan, but some elements are consistent throughout all business plan. A business plan includes an executive summary, an explanation of the business, a plan on how the proposed business will be marketed and managed, financial forecasts and the appropriate supporting documents. The following outline is only a suggestion. For further assistance, read up books on business plan which can be found in many bookshops.