Business Plan 101: The Importance of Your Business Plan
A business plan is one of the most important documents you’ll ever need to write. The business plan shows your investors, business partners, bankers or sponsors how you plan to operate your business. Furthermore, a business plan is a necessity when your company is seeking new investors or planning to expand your business. Therefore, every business needs a written plan:
- Clearly communicate your daily operational plans.
- How you intend to operate your business.
- How you plan to achieve your operational goals.
- What milestones you’ll use to measure your business’s performance.
When writing your company’s business plan, keep in mind there are no strict rules on what content you add to your plan. However, it’s best to have a logical plan for your business. Furthermore, choose a simple format, be direct and give precise details of your plan and ideas. A business plan needs to outline the problems, give a solution, and what it will cost to fix the problem.
Unfortunately, not everyone will be interested in investing in your business. That’s why it’s important to find the right company, sponsors, or investors to present your business plan to. When writing your business plan, it’s necessary that you follow a few guidelines. This is important so you won’t waste the investor’s time. Your business plan should include:
- An outline of what your idea is.
- Give supporting facts of why this product or service will benefit the public.
- Research the market to determine if another business has the same idea or a similar product you’re proposing.
- Outline your company’s growth over the next 10 years. Be realistic in your predictions for your business.
- Calculate your start-up cost, what you plan on investing, and what finances you’ll need to start your company.
- Determine how long it will take your company to turn a profit on your initial investment.
When drafting your business plan keep in mind that the business plan is written to:
- Help communicate your ideas.
- Act as a business tool to help guide your new company.
- Help in seeking financial funding to start your business.
- Guide your measurement and assessment of your business’s growth.
- Help you to set your business’s short and long-term goals.
- Outline the strengths and weaknesses of your idea.
- The business plan gives investors an easy way to evaluate your idea and determine if your plan is feasible. Conclusion
Writing your company’s business plan takes careful research and planning. Furthermore, you’ll need to take into consideration your long and short-term goals, and your prediction of where you see your company in 10 years. If you’re unfamiliar about writing your first business plan, it’s advised that you hire a professional to help you write this plan. Afterwards, you can easily make modifications to your business plan as your company grows.
About Sarah Johnston
Sarah loves working on website design and teaching companies how to improve their SEO. Sarah has been working in the computer industry for the past 12 years.