- Business plans are typically written by entrepreneurs intending to launch a new business, but many existing businesses will author business plans for new initiatives within the company. The document serves to provide an overall outline of the new business venture. There are many aspects to consider when starting up your own business, and putting everything down on paper will better prepare you for the hectic and exciting process of starting your new business.
- Knowing everything that should be included can help you prepare a strong business plan. The first part of the plan should include a cover page with contact information and an opening page with a statement of purpose or the business objective followed by a table of contents. Sections to include in the business plan are an organizational plan including the legal structure and management, a detailed marketing plan and financial information including projections and budgets. The last section should include supportive documents such as resumes or reports attesting to the new venture’s success. While you should be involved in the process of writing your business plan, it may be a good idea to hire a professional writer to assist with the first draft and to complete a final version.
- Acquiring funds, either through loans or investors, is paramount to the successful launch of your business, and a well-written and detailed business plan is imperative to securing the necessary finances. Many view the business plan as a make-or-break tool when it comes to securing the finances to get your business up and running. Investors will want to see that you have a solid business idea, attainable goals, a reputable staff and a strong business plan before they will even consider opening their checkbooks. It is a good idea to hire a professional financial analyst to assist with the financial section of your business plan.
- Business, finance and motivational speaker Robert G. Allen once famously said, “The future you see is the future you get.” Establishing clear and concise goals throughout every facet of your new business is crucial to your success. A business plan forces you to consider the goals of every facet of your business from finances and marketing to personnel and clientele, as you establish both long- and short-term goals. The process of actually writing the business plan also serves as a developmental tool for brainstorming new ideas. You may be able to build off of your original marketing strategy plan as you think of additional promotional ideas in the process. A business plan typically covers a three- to five-year time frame and can be useful for reassessing your business after that time period. You can use your business plan to compare which goals were achieved or exceeded and determine miscalculations in budgeting and projections. You can use this retrospective assessment to establish the next set of goals for your business.
- Preparing a business plan can be a daunting task as you are forced to analyze your business from all angles, allowing you to see where further planning might be needed. You may discover errors in original calculations and projections or you may find that you need to take the idea back to the drawing board for further analysis before investing too much into it. However, this is a useful tool to prevent potential problems from occurring before you get to the ribbon cutting ceremony.
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