A business plan is a document that helps explain your business idea and demonstrate its viability.
Business success is seldom the result of individual effort, at some point you will most likely need a team to grow your business. When you have a business idea that you believe in and you think will be a successful business, you need compelling information to win the support of other people who can contribute to your venture.
Their contribution might come in the form of a business loan, if you want to ask your bank for a loan or effort and work if you need a business partner.
While the format of a business pitch is effective for oral presentations, you need a written document with more detailed information to build a strong case for supporting your business idea.
A business plan explains how you are going to set up your business in detail using supporting evidence in the form of relevant data analysis, market research report and SWOT analysis along with your strategy and the resources available to your business.
A business plan is also a great way to test the viability of your business before risking or spending any money.
Doing relevant research and writing a comprehensive plan might reveal shortcomings in your business idea or your strategy. The market might be overcrowded with similar businesses or you may need more money than you thought was required.
If you are still convinced that you are going to build a successful business with your idea and strategies after writing a good business plan, then you may use it to win the support of investors and business partners.
Sometimes, you might discover during the process of writing your business plan that there are cheaper alternatives to your business strategy and you may start your business without using as much money as you thought was required.
Great Business Plans usually include the following sections:
– Title Page
– Contents Page
– Business Description
– Team members: Relevant Experience and Qualifications
– Target Market
– Market Research Report
– Marketing Strategy
– Business Structure
– Legal Structure
– Premises or Point of sale
– SWOT Analysis
– Long-term Plans
– Cash Flow Forecast
– Cash Flow Foreact Notes
– Appendices: e.g. photographs of products, blueprints, additional financial and legal documents etc.