What everyone who has ideas for starting a business needs is a plan, in order to test their idea and simply define the goals and the way to achieve them. A business plan is a document that describes in detail a business idea or business venture, the way in which it would be achieved, ie. strategy of its realization and predicts business results. It should contain the structure of the job, a description of the product or service, potential customers, development potentials and finances.
A business plan is one of the ultimate business rules. Experts believe that at the beginning of achieving business success is a way to meet realistic goals through the best, defined strategies.
The business plan has two purposes:
– to help the company to provide the necessary capital and
– to facilitate the management and growth of the company.
A business plan is made in situations when:
– the entrepreneur opens a new company,
– expands production,
– introduces a new product,
– for the purpose of business reorganization,
– takes over or sells a part of the company,
– applies for a loan
Making a plan
Creating a business plan is also necessary when submitting a request to a potential investor who will learn everything about ideas, business development opportunities and research of a specific business project in the simplest way through a business plan. Many business plans that are being written today have the task at the same time to provide better insight to investors in the company’s business and enable lending, but also define all phases of business and point out the shortcomings of specific things in a particular small business.
Creating a Business Plan includes:
– Analysis of competitors, bathrooms and suppliers
– Marketing analysis
– Analysis of the market segment for your business
– Financial analysis
– Projection of balance sheet, income statement and cash flows
By making a business plan, potential mistakes are made on paper, not in the real market. It defines the real possibilities in the functioning of your business, you see in advance the degree of its acceptability by potential customers and the need for funds.
Contents of the business plan
It is necessary to think about who will read a specific business plan. Plan to be made to high standards and readability. Depending on the priority dedicated business plans, it can be of different lengths, from just a few typed pages to plans with several hundred pages describing complex business. A typical business plan should be between 15 and 20 pages long, but in this respect the variants are numerous and different. The length of a business plan mainly depends on the nature of the business. If the concept is simple, it will not take much text for a potential investor to present what he wants. On the other hand, if a new type of business is started within some economic branches, more explanations will be needed about what will be done.
The content of a business plan also determines its length. If an investor is sought, he is willing to put millions into some risky business, it will take many words to be killed that the business is real and that he will profit. If the business plan is to be used for internal use only, defining only the most important items within it will suffice.