Business plans are an important aspect of any new business. Most
people think that a business plan is basically to try to attract future investors
for a start up business, but in reality it serves other purposes as well.
These plans help the owner organize the business and see
where they actually stand with the business.
It also serves to see if the business will actually be viable. It can
also be used to see if the business is heading in the right direction. In addition, a well-devised plan can bring
people into the business, as well as possible future investors.
So, what should be included in a business plan? There are
several components to a business plan. Some target areas that need to be
included in the plan are: an executive statement, explaining about the business,
how it originated, and summarizing the main points of the business. The plan
also needs a company description, describing what company does and what makes
it stand out from others. Next, is the mission statement describing the
company’s goals. Also, what product and services the company is offering to potential
buyers. Is there a need for this product and who is willing to purchase it?
What is the company’s competition? What separates the company from the rest? Who
will be operating the business? What is their role in the business? How will the company and product be brought
to the people? Finally, a financial overview of the business, such as start up
costs, expenses, and projected profits, as well as how much will be needed to
start the business.
Creating a business plan is a lengthy process, “but it's essential if you want to have a
successful business that's going to survive the startup phase” (Ward). It can
make or break a start up business.
Reference:
Ward,
Susan. Why You Need To Write A Business Plan 5 Reasons For Writing A
Business Plan.
http://sbinfocanada.about.com/cs/businessplans/a/bizplanwhy.htm
