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Comforte Maëlyne September 6, 2020 Business Plan

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.

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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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The vendor of the available business will need to see this in order to ascertain whether you are right to buy. It will demonstrate whether you have the correct business acumen required and whether you are serious about the business. It will also be useful when it comes to the financial side of things, but more on this in a minute.

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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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As a performance tool, it measures the progression of goals in one’s business by tracking, monitoring, as well as evaluating, and can also be used as checkpoints in measuring performance. The world today, is so dynamic that what applied today might not apply tomorrow, and as a result of this dynamism, a good business plan needs to be setup in order to protect one against risks associated with business.

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On the subject of finance, you need to produce realistic financial details. How much money will the business require? What are the expenses required? How much tax will you need to pay? What are the profit margins? Do you stand a good chance of achieving these sums, and how? Finance plans should include income statements, cash-flow statements, balance sheets and profit analysis. This should form a big part of your business plan, in order to convince the vendor or bank manager of your credibility.

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