Darcy Emie September 6, 2020 Business Plan
Before we jump into drafting our business plan, we should think about why we are writing a business plan in the first place. Most business plans are used to secure financing for a business – whether it be a start-up or an existing company looking for additional capital. This financing could come from a bank, an equity or venture capital fund, friends, family or just about any other potential investor you could think of.
A comprehensive business plan assists the entrepreneur in making a cohesive strategy that brings into account all the elements of the strategic business plan, and identifies how they associate with each other. Looking at the business in this way promotes the elimination of components of the plan that do not correlate with the greater vision. The plan helps you to identify how you can build your company over time. For example if you have an existing business you might try to expand the business through your existing clients. Your strategies might evolve around deepening your client relationships through customer relationship management. A system for reaching out to clients could help move the company forward.
Since your mission statement is only a few pages long, your executive summary will allow you to further expand upon key points mentioned in the mission statement. Consider including your business history, biographies of key players, an overview of the business including locations, employees and available products and services. You can also discuss goals and future plans. Use this section to really draw in the readers.
By making a business plan, you can pick out any potential flaws that might hinder you. It’s a good chance to find any problems or issues that may arise, and then deal with them accordingly before you get caught up in the business. Also, outside parties can cast a fresh eye over the plan, and may pick out something that you may not have spotted.
In this section you should also include the results of any market research studied that your company has completed. Also briefly discuss your competitors and their strengths and weaknesses. You may want to cover how your services will appeal to customers more than your competitors.
However, inadequate planning has been the reason so many businesses fail, and the rate at which they fail is overwhelming. It is usually believed that most businesses fail in their first year of operation and among those that fail, 80% of them do not have a well researched plan. It has been observed that business failure is not only connected with small businesses alone which I chose not mention here, go down too. Though the rate of failure is highly significant in small businesses, and it is the main reason why a good business plan is needed. Probably for raising additional cash and to provide potential investors and lenders with the information required to make investment decisions. This makes developing a business plan extremely important. One’s business plan has to stand out and his projection has to be firm due to higher competition in attracting funding for his business. Investors no longer risk their money on businesses that do not prove to have great potentials for them.
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