A business plan is not just a means for securing financing; it is a step-by-step guide to running your business and creating a product or service that will succeed in the marketplace.
Like any other map, your plan will have to be adjusted according to your vision for the company, conditions and opportunities in the marketplace and your business’ current condition.
Several things a business plan should consider are:
- What is a reasonable expectation of profitability and in what time frame?
- How will the business pay you and any team members?
- What are the estimated expenses?
- What is the pricing strategy?
- What is the demand for what you are offering and what profit margin can you expect?
Writing down your plan will reinforce your vision, give you a reference point for checking your business’ progress and will bring up factors you may not consider if you just create the plan in your head.
Writing your business plan down:
- Helps you determine and coordinate all aspects of business operations
- Gives you a means to analyse and determine how best to improve your business
- Assists you to determine the risks and benefits associated with any changes
- Decreases your chances of making a mistake or not considering important factors in your business
- Increases your chances of success
Business plans aren’t just for those just starting their business. They’re useful when acquiring a new business, forecasting growth, introducing a new product or service, entering a new market and responding to changes in the market.