A small business plan is a doc that indicates what one intends doing, how then when. This document outlines in great details, how a particular business activity is to be completed. That gives a perfect picture of the things needed for the task, the skills to be employed, the time span to be covered, the administrative centre needed for the productions and even how to market the finished product. In truth, it offers the total view of a business activity. start up business financing
A business plan has several purposes. It is a guide in handling the direction of an enterprise. The business plan dictates the activities of a business. It is the boss who the actual decisions as to how to accomplish, how much to spend, the section of the large market to etc. It solitary handedly guides the affairs of any business.
Moreover, it helps in monitoring and evaluating the progress of the business. It takes on a supervisory role for any business venture. That meticulously and regularly displays the progress of a business while evaluating it to see if the set goals and targets of the business are being achieved. When a business is declining or advancing in conditions of productivity or sales it is the business plan that points it away.
In addition, it is a collateral or security to seek a loan or financial assistance. This acts as securities when seeking for a loan at a financial establishment. It is a promise for assistance from company bodies and banks.
A number of factors must be considered when preparing a business plan. Some of these have been outlined below.
I. Executive summary- This kind of refers to the account of the members of the executive body of the company. It is not a detailed bank account of each of them but an overview.
ii. Brand and address of business or enterprise- The business plan must retain the full name of the business as well as the residential and postal address of the enterprise.
3. Identification of a need to satisfy- The venture should identify a special need that should be satisfied. This should be explicitly indicated in the business plan.
iv. Set up what you want to achieve or do- The set out goals and objectives of the venture should be enshrined in the drawn business plan.
v. Find out or research from past answer to similar problems- Solutions or remedies to past problems encountered by the venture should be written in the industry plan. The measures used by the enterprise should be noted in the business plan.
vi. Evaluate the industry or market where you can operate e. g. potential customers, competitors, etc. – A good strategy should include analysis of the point group, likely buyers of the product and potential opponents of the same product especially those in the same business location. This kind of would help the organization to ascertain best strategies in winning customers and competing effectively with opponents.
vii. Choose the best solution -The best solution that can proficiently address the situation(s) in vi. above is selected and written down.
viii. Describe the enterprise or business (product, services, background of the entrepreneur) – The full description of the business as well as its activities should be vividly given. This includes the merchandise and services made available from the enterprise as well for instance an essential information about the entrepreneur who may be manning the enterprise.