Are you planning to open a new business? Or are you considering expanding your current business ? Or do you need an additional capital? Where do you intend to get the capital, from a bank loan or investors from other people?
Most likely if you are considering for a bank loan, a business plan is necessary. The financial institution is very careful whether you can sustain the business or not. They are also more concern if you can pay back the amount you owed to them plus interest. Other investors will do the same. They will want to see your projected income as well as your suggested repayment plan already laid out. Taking the time to do this is not only important for them, but it gives you a measuring tool to verify if your business is growing properly. You can gage your success on how close to the plan your business has actually performed. Perhaps you'll do worse, or perhaps you'll do better, either way it helps you determine how well your business is getting on. Hence, a business plan is very much needed.
A business plan is a blueprint of your business. It serves as a daily guide. It functions as your personal and intimate advisor. Creating a business plan enables you to see possible obstacles to your business and prepares you to find solutions that will help you overcome them. If you have never seen a business plan nor tried to prepare one, you may be concerned that it is too difficult to create one. However, with the advent of technology most particularly the internt, a lot of free resources are already available even some for FREE. Or you can always hire someone to prepare a business plan. However, I would advice to prepare it on your own simply because it is your business and perhaps just hire some experts to fine tune the process.
There's a free tool at www.bdc.ca which will assist you in creating a business plan. Some of the topics you will be required to explain are your Market, Customer, Competition, Marketing Plan, Research & Development along with financial forecasts.
Your Business Plan will become your guide and silent business partner - indicating where you need to improve and helping you stay one step ahead of your competition. Make it a priority to have this crucial road map for your business.
Source: Scott Morris's personal site on accounting business and business administration http://businessexcel.com/for more information, you can visit http://businessexcel.com/
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4 comments:
I truely believe that the business plan is the blueprint of the business. It is your basis on planning your goals, where will you get your capital and other plans on how you can gain profit or how you can expand your business. Organizing is also important in the business through proper management. Proper leading of the employees is also necessary. And lastly is the proper control of the business. Is it easy for you sir to manage your own business.?
I truely believe that the business plan is the blueprint of the business. It is your basis on planning your goals, where will you get your capital and other plans on how you can gain profit or how you can expand your business. Organizing is also important in the business through proper management. Proper leading of the employees is also necessary. And lastly is the proper control of the business. Is it easy for you sir to manage your own business.?
Jezreel D.Gitalan BSACCY2
Interesting post. I want to run a business soon, so I'll keep this post in mind. Becoming, what I hope, an entrepreneur is somewhat new to me, so I can use all the help and advice I can get! I know it'll be tough. Lately I've been thinking about the idea of buying a business instead of starting from scratch. I'm not sure what I should go for. Franchise? Home-based? I don't know. Do you have any suggestions or advice? Thanks!
@Rachael -- You're right. It will be tough running your own business, but if you stick through it, it can be extremely rewarding. If you really do want to be an entrepreneur and buy a business, then I suggest searching the Internet to what is available in your area. There are sites, like BizTrader.com, which are online global marketplaces where you can buy and sell businesses. They can also provide you with additional resources like finding a lender, broker, etc.
I also suggest checking out current books and magazines for help and advice. Local small business groups can also be very helpful, and it doesn't hurt to network.
Good luck!
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