Business Plan: Clarify Direction

BUSINESS PLAN
Typically, a business plan is longer than a list on a napkin (although, it is

possibleand sometimes idealto write your entire. For me in practice, and
for most real businesses, it can be as simple as a few bullet points to focus
strategy, milestones to track tasks and responsibilities, and the basic
financial projections you need to plan cash flow budget expenses.
Business plans should only become printed documents on select occasions,
when needed to share information with outsiders or team members.
Otherwise, they should be dynamic documents that you maintain on your
computer. The plan goes on forever, so the printed version is like a snapshot
of what the plan was on the day that it was printed.
If you do need a formal business plan document, then that includes an
executive summary, a company overview, some information about your
products and/or services, your marketing plan, a list of major company
milestones, some information about each member of the management team
and their role in the company, and details of your companys financial plan.
Unfortunately, many people think of business plans only for starting a new
business or applying for business loans. But business plans are also vital for
running a business, whether or not it needs new loans or new investments.
Existing businesses should have business plans that they maintain and
update as market conditions change and as new opportunities arise.
IMPORTANCE OF BUSINESS PLAN
Clarify Direction :
The primary purpose of a business plan is to define what the business is or
what it intends to be over time. Clarifying the purpose and direction of your
business allows you to understand what needs to be done for forward
movement.
Future Vision :
Businesses evolve and adapt over time, and factoring future growth
and direction into the business plan can be an effective way to plan for
changes in the market, growing or slowing trends, and new innovations
or directions to take as the company grows. Although clarifying
direction in the business plan lets you know where you're starting,
future vision allows you to have goals to reach for.
Attract Financing :
The Small Business Administration states, "The development of a

comprehensive business plan shows whether or not a business has the
potential to make a profit." By putting statistics, facts, figures and
detailed plans in writing, a new business has a better chance of
attracting investors to provide the capital needed for getting started.
Attract Team Members :

Business plans can be designed as a sale tool to attract partners,
secure supplier accounts and attract executive level employees into
the new venture. Business plans can be shared with the executive
candidates or desired partners to help convince them of the potential
for the business, and persuade them to join the team.
Manage Company :
A business plan conveys the organizational structure of your business,

including titles of directors or officers and their individual duties. It also
acts as a management tool that can be referred to regularly to ensure
the business is on course with meeting goals, sales targets or
operational milestones.
Typical structure for a business plan
cover page and table of contents
executive summary
mission statement
business description
business environment analysis
SWOT analysis
industry background
competitor analysis
market analysis
marketing plan
operations plan
management summary
financial plan
attachments and milestones
Elements of a Business Plan

A business plan is a description of the business, a road map that will help you get to your
desired destination. It gives you an idea of the obstacles that lie ahead and can point out
possible alternate routes. One of the major benefits you will receive from developing a
business plan is getting to thoroughly know your industry and market. A well prepared
business plan will not only assist in plotting a course for the company, it can also serve as a
vital sales tool.
The following are the major elements of a business plan:
The Company :
Management
Mission
Recruitment
Training
Organization
Location
The Service or Product

The Market :
The Industry
The Competition
The customer
Distribution
Financial :
Financial Organization
Competition
Financial projections
Risks and Rewards :

Risks
Rewards
Checklist of a Business Plan

The primary value of business plan will be to create a written outline that evaluates all
aspects of the economic viability of your business venture.
1. A business plan to be complete in order to satisfy the needs

of the entrepreneur should include :
Introduction
History
Description of the business
2. Basic Consideration :
Acceptability of products or services
Legality of products or services
3. Accounting and Finance :
Balance Sheet
Income Statement
Cash Flow analysis
Profitability
4. Competitive Advantage :
Potential Market Share
Market Share of the existing company
5. Production :
Choosing a product or service

Maintenance and servicing
Insurance
Controlling wastage
Quality control
6. Marketing :
Product or service description

Advertising
Market segmentation
Target customer
Location
7. Management :
Managerial skills
Organizational hierarchy
Customer relations policies
Inventory control
8. Conclusion :
Individual and overall impression
Benefits gained by owner
9. Appendix :
Maps
Trade association material
Layout
Flyers
Business plans may be internally or externally focused. Externally focused plans target goals that
are important to external stakeholders, particularly financial stakeholders.
Internally focused business plans target intermediate goals required to reach the external goals.
They may cover the development of a new product, a new service, a new IT system, a restructuring
of finance, the refurbishing of a factory or a restructuring of the organization.

Business Plan: Clarify Direction

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Business Plan: Clarify Direction

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BUSINESS PLAN

Typically, a business plan is longer than a list on a napkin (although, it is

IMPORTANCE OF BUSINESS PLAN

The Small Business Administration states, "The development of a

Attract Team Members :

A business plan conveys the organizational structure of your business,

Typical structure for a business plan

cover page and table of contents

business environment analysis

attachments and milestones

Elements of a Business Plan

The Service or Product

Risks and Rewards :

Checklist of a Business Plan

1. A business plan to be complete in order to satisfy the needs

3. Accounting and Finance :

Choosing a product or service

Product or service description

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