A Business Plan is the foundation and the building block of every company. A good Business Plan is the blue print of the business. The Business Plan opens many doors, viz., the investor, financial institutions, etc.
The Business Plan prepares the company to look ahead to allocate resources, focus on the key points and prepare for problems and opportunities. Business Plan helps to optimize growth, development and profits.
The Business Plan is a written outline to evaluate all aspects of economic viability of the business venture, giving a description and analysis of the business prospects. It is the road map to chart the course of business future. But it has to be periodically reviewed and updated as conditions change both internally as well as externally.
A Business Plan is useful, in that :
The following aspects should find a place in a good Business Plan:-
Vision Statement: - Outline, goal and objectives of the business.
People: - Inclusion of promoter’s experience and expertise and how it is going to serve the business. Also about others involved in the business, who are key to the performance and success of the business.
Business Profile: - To define and describe the intended business and how exactly to go about with the plan. To stay focused on the specialized market that is being targeted.
Economic Assessment:- Description of the economic environment in which the business is going to operate. How the business is going to be related or appropriate to the regulatory agencies.
Cash Flow Assessment:- To include a one-year cash-flow incorporating capital requirements. Financial and revenue projections based on sales. Assessment of what could go wrong and ways to handle such problems.
Marketing and Expansion Plans:- Details of market segment in which the business will compete, how the competitors will be overcome, and market expansion analysis.
Thus, a well defined, analyzed and focused Business Plan is a vital document for any business, big or small, for taking the right decisions for the business to succeed.