A business plan is a written form of the business objectives,reasons for the said objectives and how they are to be achieved for a particular business to succeed. Writing of a business plan is done after a thorough market research and all the necessary information has been gathered.
A business plan is to a business, what amanual is to a gadget, very necessary when the business is new, and a reference tool to an already existing one.
A good plan starts by; description, it shortly describes the area in the market that the business will venture in, sheds light on the current outlook and how it will improve the life. This where you make the first impression.
The next item is usually the market strategies, now the information used here is the one acquired during the initial market study. Having analyzed the market the entrepreneur or the business owners will able to identify the target market and how the business can be able to meet its needs.
Only in an ideal world would a business be a monopoly. Hence, there is an inclusion of:
Competitive Analysis, which lists all the measures to make you stand out as a different and better option. It is reached after a study on all the competitors weaknesses.
Design and Development plan. Follows whereby the designs of the products are illustrated and described alongside the budget.
Operations and management plan. Here the discussion of functionality of the business on a day to day basis takes place and the various roles and responsibilities of the personnel.
Financial factors; this is always the final entry in a business plan. It carries with it the weight of being the enabling factor in the start and running of the business.
With the guide above, the business has made its first step towards achieving its set goals. The plan helps the business owner communicate his desire to prospective employees as it clearly outlined the role of each and also to prospective investors or lenders as they will just take a look at the plan to come up with a decision.
There is ease in financial management because the plan contains financial factors, that stipulate all transactions. It ensures the observation of all initial goals and targets, and also manages the human resource in its operations. That includes delegations and minimizing the staff if extra expense occur.
A business plan is a marketing plan, as the knowledge of the target market dictates the strategies to be used, for example, the Internet, and print or electronic media. It also includes, all outlets to sell your products. How the marketing and sales are done does not have to be as in the plan but should act as a guide to what goes on in the ground.
In conclusion, a business plan is important in;
- Describing a business.
- Listing the goals and objectives.
- Facilitating communication in a business.
- management of the business resources.