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BUSINESS PLANS
Business Plans are decision making tools. Each plan is unique to the business and the business owner (and vision). The content is determined by the goals and vision of the company and the audience it will serve. The plan also serves as a catalyst to determine whether to pursue a goal.
The Business Plan may be written for profit or non-profit companies. For-profit plans typically focus on financial goals. Non-profit and government agency plans tend to focus on service goals.
Business Plans may also target changes in perception and branding by the customer. Plans include a detailed Marketing Plan encompassed within and will serve as a focus to bring the products and services of the business to the marketplace and how to attract a defined target market.
Why you need a Business Plan
Just as a builder uses a blueprint to ensure that a building will be structurally sound, a business should have a blueprint also. Without a business plan, the business leaves too many aspects to chance.
Through a well-written and organized business plan, an Entrepreneur dramatically increases the odds of success. The plan contains a description of the business and includes details of how it will operate and gives a true evaluation of the competition and a picture of the financial forecast expectations.
Benefits of having a business plan
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To determine profitability of the business
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Provides an estimate of costs and the investment needed
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Provides an estimate of costs and the investment needed
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Convinces investors and lenders to fund the business
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Provides a revenue and market share estimate
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Defines an effective marketing strategy
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Assists in competing in the marketplace
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Anticipates potential problems problems so that they may be solved before they become disastrous to the business
Business Plans are needed (in most cases required) to raise capital
If you require funds for your business venture – start-up or expansion – without a doubt you will need a solid investor-ready formal business plan. Entrepreneurs who wish to borrow money or attract investors will be successful only if they are able to present an effective business plan. All potential lenders or investors will need to understand as much as possible about how the business will work before financial backing is available.
Investor-ready business plans include:
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A persuasive executive summary and business introduction
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A detailed request for funds
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A statement of purpose for the business
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A detailed description of how the business will work - including descriptions f products and services, employee details, supply and distribution, and location information (geographics)
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An analysis of the target market
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An evaluation of competition and risks
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A description of the marketing strategy
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Resumes and managerial experience of all owners
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Detailed financial information and reports - detailing revenue, expenses, and the ability to make a profit
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Additional information specific to the business.
Maintaining the business plan
Business owners should know the importance of maintaining the business plan throughout the life of the business. The plan is a living document that needs to be updated and changed as the business grows and changes. Regardless of the use, it should still take an objective, realistic, and honest view of the business. Failing to maintain the business plan could mean that you or others have unrealistic expectations of what can be achieved and when.
A Perfect Plan offers maintenance solutions for ongoing support of the business plan and company documentation.
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