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Preparation of a written business plan is not the end-result of
the planning process - realization of the plan is the ultimate
goal. However, writing the plan can be an important intermediate stage
- fail to plan can mean plan to fail. For an established business,
a written plan demonstrates that careful consideration has been given
to the business's development, and for a startup it shows that the entrepreneur
has done his or her homework.
| Freeware Business Planner |
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Free-Plan - 150-page Business Plan Guide & Template |
Requires: Word + Windows 95/98/Me/NT/2000/XP
Price: Free |
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Purpose of the Plan
A business plan is just as important for an established business, irrespective
of its size, as it is for a startup. It serves four critical functions
as follows:
- Helps management or an entrepreneur to clarify, focus and research
their business's or project's development and prospects.
- Provides a considered and logical framework within which a business
can develop and pursue business strategies over the next three to five
years.
- Serves as a basis for discussion with third parties such as shareholders,
agencies, banks, investors etc.
- Offers a benchmark against which actual performance can be measured
and reviewed.
Just as no two businesses are alike, so also with business plans. As
some issues in a plan will be more relevant to some businesses than to
others, it is important to tailor a plan's contents to suit individual
circumstances. Nonetheless, most plans follow a well-tried and tested
structure and general advice on preparing a plan is universally applicable.
A business plan should be a realistic view of the expectations and long-term
objectives for an established business or new venture. It provides the
framework within which it must operate and, ultimately, succeed or fail.
For management or entrepreneurs seeking external support, the plan is
the most important sales document that they are ever likely to produce
as it could be the key to raising finance etc. Preparation of a comprehensive
plan will not guarantee success in raising funds or mobilizing support,
but lack of a sound plan will, almost certainly, ensure failure.
Importance of the Process
Preparing a satisfactory business plan is a painful but essential
exercise. The planning process forces managers or entrepreneurs to understand
more clearly what they want to achieve, and how and when they can do it.
Even if no external support is being sought, a business plan can play
a vital role in helping to identify possible mistakes or recognize hidden
opportunities. It is much easier to fold a sheet of paper than a business.
For many, many entrepreneurs and planners, the process of planning (thinking,
discussing, researching and analyzing) is just as, or even more, useful
than the final written plan. So, even if you don't need a formal plan,
think carefully about going through the planning process. It could be
enormously beneficial to your business.
Anticipate weeks of hard work and several drafts of the emerging plan
to get the job right. A clearly written and attractively packaged business
plan will make it easier for you to interest possible supporters, investors
etc. A well-prepared business plan will demonstrate that the managers
or entrepreneurs know the business and that they have thought through
its development in terms of products, management, finances, and most importantly,
markets and competition.
More Help
For more guidance on these matters, view the other pages and check the
white paper offering Insights
into Business Planning, the Checklist
for Preparing a Business Plan, Free-Plan, free 150-page Business
Plan Guide and Template (Word
format), and the comprehensive Business
Plan Guide.
| Freeware Business Planner |
|
Free-Plan - 150-page Business Plan Guide & Template |
Requires: Word + Windows 95/98/Me/NT/2000/XP
Price: Free |
| Details & Download |
|
|
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