What is a business plan and why do I need one?
Answer A business plan provides a detailed description of your business, helps you define what business you are really in, identifies your goals, and serves as a roadmap for your business. It can help you avoid unforseen problems, properly allocate resources, and help you make good business decisions. A well-written business plan will include information on how you will market the business, who the owners/managers are and their relevant experience, current and projected income statements, balance sheets, and cash flow statements. The business plan is a critical component of any loan package in the event you want to borrow money to start your business. It communicates to lenders, suppliers, sales personnel, and others about your operations and goals. The Small Business Center will not write your business plan for you, but will help you understand how to write the plan and give you feedback about the plan.
For many entrepreneurs the creation of a business plan is the biggest hurdle in the development process of their fledgling enterprise. There is a mystery, almost a dread in many people when discussion of a business plan requirement is first broached. They conceptualize a boring, dry, painful experience and many would like to avoid this step if at all possible. What is a Business Plan? A business plan is a document that qualifies, quantifies and narrates a commercial opportunity. It is that simple to state, more difficult to execute, but anyone can customize a business plan that gets results. The plan must have an exciting Executive Summary. Like the opening scenes of a movie, or the first chapter of a book, the writer must set a hook. Typically, active investors, angels, venture capital groups and investment bankers are deluged with business plans. Screeners typically read the document before passing along to decision-makers within the firm.
A business plan precisely defines your business, identifies your goals and serves as your firm`s resume. Its basic components include a current and pro-forma balance sheet, an income statement and a cash flow analysis. 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 choice of business entity formed to operate the business is important, whether a corporation, Limited Liability Company, Limited Liability Partnership, or Limited Partnership, there protection and tax implications can effect profits.
A business plan precisely defines your business, identifies your goals and serves as your firm’s resume. Its basic components include a current and pro forma balance sheet, an income statement and a cash flow analysis. 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.
