A business plan is a document that indicates what one thinks doing, how and when. This document outlines in great details, the way the specific business activity is to be carried out. It provides a perfect image of the things required for the work, the skills to be utilized, the time period to be covered, the funds necessary for the productions and even how to advertise the finished product. In actuality, it provides the complete outlook of a business activity.
A business plan has many purposes. It acts as a guide in controlling the management of a venture. The company plan dictates the actions of a company. It’s the boss who makes the decisions regarding how to do it, how much to invest, the section of this massive market to target . It single handedly guides the affairs of a company.
In addition, it assists in monitoring and assessing the development of the company. It plays a supervisory role for any business enterprise. It thoroughly and regularly monitors the progress of a company when evaluating it to determine if the set aims and objectives of the company are being attained. When a company is declining or advancing concerning productivity or sales it’s the business plan which points it out.
Additionally, it acts as a security or collateral to look for a loan or financial help. It functions as a safety when searching for a loan in a financial institution. It’s a guarantee for help from corporate bodies and banks.
Several factors must be taken into account when preparing a business plan. Some of them have been summarized below.
I. Executive summary- This identifies the profile of the members of the executive body of the business. It’s not a detailed account of each of these but a summary.
ii. Name and address of company or business- The business plan should contain the entire name of the business in addition to the postal and residential address of the enterprise.
iii. Identification of a need to meet- The enterprise should determine a special need which ought to be satisfied. This should be explicitly indicated in the company plan.
iv. Establish what you want to accomplish or perform- The set out aims and objectives of the enterprise ought to be enshrined in the drawn business program.
V. Find out or study from previous solution to similar problems- Solutions or remedies to previous issues encountered by the enterprise ought to be written in the company plan. The steps taken by the enterprise ought to be noted in the company plan.
vi. Analyze the business or market where it is possible to operate e.g. potential clients, competitors, etc.- A great business plan should include evaluation of the target group, likely buyers of the goods and potential opponents of the identical product especially those in precisely the exact same business location. This would assist the business to determine best approaches in winning customers and competing effectively with opponents.
If these factors are covered in one’s business strategy, it would be very effective in helping the enterprise to grow and to not incur great losses but instead compounded profits.
For proactive solutions to issues in companies and how to exploit your small enterprises for optimal benefits you require efficient preparation and organization.