No matter how passionate you are about your business, you ought to have a set plan if you want it to boom. A business plan stops you from moving in circles. It will help you to continually hit your mark. It takes great enthusiasm to start a business but it requires a concrete plan to succeed in the long haul.
A business plan is the preferred picture of your business, which is documented. It describes what you intend to do, when you intend to do it and how you intend to do it. The most important thing about a business plan is not how long the pages are but how well it is understood.
- Why you need a business plan?
- To know your market: Having a business plan enables you understand your sphere of influence and exactly who needs your services.
- Attract investors: Nobody likes to partner with someone who does not have a clue where they are headed. A business plan gives an investor insight into your business and helps him decide if he is going to thrust in his resources or not.
- You hardly seek the wrong opportunity: It is almost impossible to slip into the wrong business opportunity when you have a business plan. A business plan helps you weigh the merits and demerits of every business opportunity you come across.
- Major parts business plan
There are three major parts that make up a business plan. They include:
- Business concept: You describe your business structure, the services you render and how you intend to flourish your business.
- Marketplace section: You discuss your potential clients, who they are and where you intend to find them. Describe your competitive edge.
- Financial section: Discuss your cash flow statement and income, balance sheet and other financial statements.
- Components of a business plan
The major parts of a business plan branches into different components namely:
- Executive summary
- Business description
- Market strategies
- Competitive analysis
- Design and development plan
- Operations and management plan
- Financial factors
More so, a business plan ought to have a cover, title page and table of contents.
The criteria of a business plan
If you are in business, then you need a business plan. There is no exception, from start-ups, to small businesses and large businesses need a business plan.
How long should a business plan be?
Every business requires a peculiar business plan; different strokes for different folks. Emphasis is not laid on the length of the business plan, but on how well it is written and easily understood.
What business plan is best?
This depends on what you intend to achieve. Whatever your intentions are, there are different plans you could choose from.
- Mini-plan: it is about 10 pages; it should focus on the key elements such as business concept. Financial section and market section.
- Working plan: unlike the mini plan, the working plan is long and describes every detail of your plan.
- The presentation plan: it is similar to the working plan, the only difference is that it should be printed in a high quality printer and should include illustrations; charts, graphs etc.
Good luck as you draft your business future. Keep thriving!