A business plan is a formal written document that furnishes:
- Company’s vision, mission and goals
- Marketing & Advertisement
- Operation & Working
- Financial Projections
- Time-frame to achieve the goals
Important Point: While it’s a good idea to give as much detail as possible, it’s also important that a plan be concise to keep a reader’s attention to the end.
Goals Of A Business Plan:
A Business plan has following goals:
- To evaluate feasibility of an idea
- To develop a strategy
- To assist in obtaining approvals
- To allocate resources wisely
- To establish credibility
Why do Business Plans fail?
A business plan is likely to fail if:
- You do not stick to the plan
- Leadership is not strong
- Miscalculate the financial projections
- Ignore market fluctuations
- Unable to pivot a new course as per your needs
Who Reads the Business Plan—And What Are They Looking For?
There are two primary audiences for a firm’s business plan
What They are Looking For
- A Firm’s Employees
A clearly written business plan helps the employees of a firm operate in sync and move forward in a consistent and purposeful manner.
- Investors and other external stakeholders
A firm’s business plan must make the case that the firm is a good use of an investor’s funds or the attention of others.
Types of Business Plans
Components Of Business Plan:
A business plan is composed of 10 essential elements: