What is a business plan and why do I need one?
A business plan is a written document which precisely defines your business, identifies your goals and serves as your road map for your business. Its basic components include a current and pro forma balance sheet, an income statement and a cash flow analysis. It helps you make the right decisions. Because it provides specific information about your company and how you will repay borrowed money, a good business plan is crucial if you need to borrow money. If you manage your business processes well, with a bit of luck you will be able to convert your product or service into a profit large enough to repay you for all the time, energy and money you will have put into your business venture. For more tips on writing a business plan and to see a sample business plan go to Pu it in Writing.
A good business plan is a crucial part of any loan package. A business plan precisely defines your business, identifies your goals and serves as your firm’s résumé. Its basic components include a market study, marketing/promotional strategy, current balance sheet, and income statement and a cash flow analysis. It helps you allocate resources properly, handle unforeseen complications and make the right decisions. Additionally, it can tell your sales personnel, suppliers and others about your operations and goals.
A business plan precisely defines your business, identifies your goals and serves as your firm’s resume. It helps you allocate resources properly, handle unforeseen complications, and make the right decisions. Because it provides specific and organized information about your company and how you will repay borrowed money, a good business plan is a crucial part of any loan package. Additionally, it can tell your sales personnel, suppliers and others about your operations and goals. The business plan is typically 10-50 pages in length and includes the following major sections. The actual length will be a function of the complexity of your business and how much money you are looking to obtain. A small home-based business looking for a bank loan would only require a “minimal” plan 1. Table of Contents 2. Executive Summary – A short description of “the business.” 3. Company Description – Details of what the business is about 4. The Market – Who is going to buy your product/service and why 5.
A business plan precisely defines the business, identifies goals and serves as the companys resume. It illustrates the operational and financial aspects of a business. It is a roadmap to help you achieve your goals. Because it provides specific and organized information about your business and how borrowed money will be repaid, a good business plan is a crucial part of any loan package. Additionally, it tells personnel, suppliers and others about company operations and goals. SCORE provides comprehensive business plan templates for new and established businesses in the Template Gallery of the Business Tools section, on the national SCORE Web site.
A business plan is a written summary of what you hope to accomplish by being in business and how you plan to organize your resources to meet your goals. It is a vehicle to describe your business and your product or services and is a road map for operating your business and measuring progress along the way. The plan describes in writing the market, the industry, customers and competitors, your products/services, your marketing plans and your operations along with sales and cash flow forecasts. The business plan is a document that should change as your business grows.
