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Experts say that a strong business plan is one sure step in the direction of success. So, what is a business plan in the first place? It is defined as a document that outlines the functional and financial objectives of a business. It also contains details of the budget involved and the goals to be achieved.
Everything on earth is tending to become compact. Gone are those days when a sea beach was described in a thousand words. Today, a similar description is possible with a powerful visual and a string of strong adjectives in only a few words. A mobile phone today is slightly bigger than your thumb. Similarly, a business plan is no longer a document of a hundred pages. Nobody wants to know your business. They want to know your views, your goals, your objectives and your plan of action.
How Well Can A Business Plan Be Implemented?
o Simplicity of a business plan - is it understood by one and all? Are its views and objectives clear?
o Specificity of a business plan - are the contents measurable? Are all the activities dated (initiation to completion)? Are all the actions distributed among personnel clearly?
o Real nature of a business plan - are the objectives and targets real? Are the goals set within a specified time achievable?
o Totality of a business plan - is the plan complete? Does it have all the necessary elements to outline your business goals?
A business plan has multiple uses. It can be used to start a new business enterprise, take a loan or to find good investors. There are many other reasons for which you need a business plan. You should first find out why you need a business plan.
Why Do You Need A Business Plan?
o Outline objectives and set goals to achieve them
o Prepare regular business review outlines
o Start a new business enterprise
o Decide on a value on a business for sale and legal issues
o Outline agreements between business partners
If business plans are conceived for different purposes, there must be different business plans for different kinds of ventures. Business plans are also known as growth plans, internal plans, investment plans and so on and so forth.
If your business plan is for internal study and revision, there is no need of background details of your organization because you are already aware of them. You need to add that only if your business plans are meant for banks and other institutions.
What Are The Different Types Of Business Plans?
- The most basic of business plans are the start-up plans that clearly outline the steps for a new business venture. They include details of service provided or product offered, market value of the same, implementation strategies, market and financial analysis. The basic structure consists of a summary of the company, ending with details of financial transactions and expectations for the first year.
Labels: Business Plans