About Entrepreneurs

Author: Susan Mackasey

Business Plan 114
Many people think that the business plan is the cornerstone on which their business is built. While that may be a bit extreme, the plan and the process to develop a plan, clearly improves the probability of businesses' success. A good plan helps clarify what the business goals should be (compared to what they are now), and helps determine the viability of the business before and after achieving those goals. Investors and financial institutions require a proper business plan before providing funding.

Why Create a Business Plan?
Developing a business plan is a crucial step contributing to the success of a business. Business plans are developed for many reasons:

Business Plan as a Road Map
By taking that step back, you see the big picture more easily. A plan is not just used at the start-up, but also is a helpful touchstone to remain on plan while continuing to develop the business.

Will the Business Fly?
The business plan provides a clear way to determine the viability of the business idea. The plan focuses you on clarifying how long and through what means the company will be profitable; what funding (if any) will be needed; and what will be the roadblocks to overcome.

Increased Knowledge
Your business plan should be used as a guide for your Company's internal use. This will help you to achieve the goals you have established for your venture.

Sales Tool
The business plan will be required to sell your idea to potential investors, lenders, and management. It provides a useful way of explaining your business to existing or potential colleagues, staff and business partners. It provides legitimacy with other parties too, such as landlords.

First Steps
a) Determine your audience, objectives and action time-line
b) Gather the industry research
c) Organize the information
d) Write the plan