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Business plans

Susan Mackasey

January 03, 2007

Developing your Plan
Whether you are a "back of the napkin" person, or a detailed planner you will benefit from following the tried and true method of developing a business plan. A proper business plan helps to determine how to attain business goals and enables start-ups to examine the viability of the business. It allows existing businesses the opportunity to identify their strengths and weaknesses and plan for future success. In addition, to secure funding from investors and/or financial institutions, a company must have a well-developed business plan.

Purpose
The step of developing a business plan contributes to the ongoing, overall success of a business. There are many reasons to develop a plan:

Road Map
One sees the big picture more clearly once the business plan is developed. It not only lays the groundwork for starting the business but for successfully remaining on track and building a sustainable operation.

Feasibility
The business plan helps to determine the feasibility of your business idea. Some of the results are estimating what funding could be required; whether the venture should be profitable; as well as predicting potential roadblocks to be overcome.

Increase the Knowledge of Your Business
Your business plan should be used as a guide for your Company's internal use. If you don't believe in it, why should outsiders?

Sales Tool
The business plan will be required to sell your idea to potential lenders, investors, management, and to obtain future business partners. It helps in other areas too such as securing a lease.

Initial Steps
a) List your audience, goals, and the time line you expect to achieve these in
b) Competitor analysis, and industry market size
c) Research the background data and then organize it into the "standard" business plan format
d) Write the plan

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