Learn How To Create A Business Plan Step By Step
How to write a business plan, how to draft a business plan and how to make a business plan is simple if you can follow the simple rules. Business is any activity that involves the provision of good and services within two individuals for commercial gains. Business is done irrespective of the organization involved, I could be between an individual and an organizations, within organizations, schools, religious places, hospitals, governmental agencies and non-governmental agencies.
A business plan is necessary before any operation is commenced. Business can be classified based on the following categories: small scale, large scale, and medium scale, shop, local business, federal and state business and multinational business corporations. Finally, the definition of a business could be referred to as any activity existing between two entities on the exchange of goods and services for the purpose of making profit.
What is a Business Plan?
A business plan is a formal statement of a business entity or an organization containing the background information of the business, the vision of the organization, the purposes of the organization’s business and the goals of the business organization. Business plan also contain the product description and the customers. Business plans usually cover a period of three to five years. In nut shell, business plan serves as a road map of a business venture which guarantee a steady start up, gradual growth and vitality of the business.
Business process planning is the act of setting and determining the business goal, strategies, actions projected to promote the business, to ensure the survival of the business and the progress of the business. A business plan is a road map and blue print to a business venture. A business plan guides an organization to in making policies and strategies that would continually modify the business and discover new opportunities.
How to Write a Business Plan
Do you wish to write a business plan from the scratch? The following are the detail of a business planning process.
Research: for a business plan to be developed, business owners need to make a concrete research of the market. Then from the market research results, strategies are developed to stay in pace of the competitors. With accurate implementation of the strategies, there is still need to continuously research and revisit your strategies per time.
Structure of a business plan: when it comes to business planning process, care must be taken to input the right contents of the business plan component. A business plan contains the following in structural format- executive summary, business description, business environment, business market analysis, marketing plans, operation plan, management and organization structure and financial plan.
What are the Reason for a Business Plan?
There are many reason why individuals and organizations develop business plan. A well beginning has a contribution to a strong foundation in business, you can lose vision in business but with a good business plan you can have a fresh start.
It serves a business guide: business plan gives guidance to business owners through the phases of the business life. It also gives assurance of potentiality.
It helps in business reviews: business plans serves a reference purposes which help a business to stay on course and not to go out of competition. It also serves a document that could be used for necessary business adjustments.
It serves a support document for loan and fund raising: business plans aid as am official statements to financial institution for obtaining load for business ventures. A comprehensive business plan with realistic goal and strategies serves a document for obtaining load and grants.
It helps in partnership agreement deeds and proper allocation of resources: business plans helps define partnership agreement, allocation of shares and resources within shareholders. It also helps in making wise decision during the times of unforeseen circumstances.
Provision of government policies and procedures: an organization would make business plan so that government policies can be met adequately. When there is a favourable government policy, business will grow thereby making companies to plan effectively so as to me the government requirement.