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Tiffney Lina September 7, 2020 Business Plan

A good business plan is used to attract funding from investors. Most investors will look at a business plan as a decision-making tool. There are certain things investors look out for in a business. These include one’s management team, every investor will want to know a business owner’s managerial skills, passion, and his dedication to his business. A comprehensive description of how one’s products or services should be discharged, his customer base, his market and financial analysis. A business plan should have a realistic financial forecast. Every investor will always like to see his business associate’s return of investment, cash-flow and break-even analysis. Hence, a well prepared business plan is the key to attracting investors.

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In many cases business plans are very important but so much of the time it’s a plan to try to convince someone else that you know what you are doing with your business like banks, investors, partners, etc. Now it’s true that a well written business plan can also be a major benefit to your success as well if done right. It can guide you and keep you on track and can be the vehicle to get you were you want to be especially with so many outside forces now days that bombard you. A plan can be extremely important to your success especially when you look at the statistics that says 51% of small businesses fail sometime during their first 5 years.

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Another point of contention is how optimistic you should make your business plan. The problem with making over-optimistic predictions and plans is that these plans could well go wrong. Unforeseen circumstances can always put a spanner in the works. Therefore, it’s wise to err on the side of caution when it comes to devising your business plan. Indeed, it’s wise to predict conservatively and prudently when it comes to assessing the possibilities of future targets, sales and profits. A worst-case scenario will always prove to be less of a shock than one that raises expectations too high.

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Working with a business plan, it will prevent one from entering unfamiliar territory. The plan becomes a working map for him and his organization. I t spells out the things to do and things not to do, the functions and how everyone and every department should operate. It helps one become more efficient, reduce waste and redundancy, channeling one’s resources to rightful place and being a guide to the successful running of his business.

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The planner can be able to declare the financial conditions and financial goals of the company by the help of written form of the business plan. A businessman must think about the present and the future conditions, which mean that he must analyze recent conditions as well as the upcoming needs. He should categorize the ideal and awful clients so that he can take steps to attract the best clients, at the same time to refuse the others. A business plan should be written in brief way so that he won’t forget any topic or information.

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So why make a business plan? I want to show you a totally different kind of business plan. What if you made a business plan that focused only on what you want for your life? You have dreams about what you would like your lifestyle to be, right? Why not make a business plan that could give you those dreams? What would your business look like if it gave you exactly what you want in life. What kind of salary would your business need to give you? Why not build a business plan around that? Decide how much salary you would need to support your dreams and then build a business plan that would show exactly how your business could give you that. Wouldn’t it be better to have your business work for you instead of the other way around?

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