What is a business plan
Posted: Wed Dec 18, 2024 5:40 am
Whether you're starting a new business venture or planning an expansion, having a business plan can help you navigate where your company wants to go.
Despite this, many studies and reports show that 1 in 4 companies does not have a business plan.
So, what are the benefits of business planning and how can it help businesses succeed? We'll tell you in this article.
What is a business plan?
There are numerous reasons why you might want to start a business .
You may have a czech republic email list great idea. Maybe you've always wanted to run your own company. Or, unfortunately, maybe you've lost your job.
But for your business to be a success , your passion, enthusiasm, hard work and skills must have a practical example to build on. Especially since this is about starting a new business.
And this is where your business plan comes into play .
Don't forget that having a good business plan:
You will have a guide that will define the unique selling proposition (USP) and give you clarity about the market and competition your business will face.
You'll be working towards a series of milestones that will help you grow your business . But don't forget that your plan shouldn't be a static document. Instead, you'll need to update it regularly as your business evolves, to make sure everything is moving in the right direction.
Download your FREE copy of the “Business Survival Kit for SMEs”
Benefits of writing a business plan
Jennifer O'Toole, a senior partner at the accounting firm Thomas R. Dixon, says, “A business plan is like a flight path. It lets you know where you want to go, what you want to accomplish, what you have to do to achieve your goals, and probably most importantly, what problems you can expect along the way.”
“Being able to identify potential threats, problem areas that could impact the business and being able to develop coping strategies proactively rather than reactively is key to business survival.”
And for those seeking funding, a business plan can make all the difference. Rebecca McNeil, MD for Business Lending and Enterprise at Barclays, says: “A solid plan can help with funding applications, from a business loan to alternative forms of finance and investment.”
Reasons why good business planning is not done
If it is so useful, why is it not common to prepare a business plan? Here are some common challenges:
Time
If you have a good idea of what business you want to start, it shouldn't take long to create your business plan. Keep it short and simple and choose a format that works for you.
Uncertainty
It's true that you can't know what will happen until you start a business, but a plan can help you spot potential pitfalls and understand the financial implications behind your idea.
Lack of agility
Some people think that business planning stops companies from evolving, but a good business plan should be up-to-date and adapt as you test and learn.
More articles on how to create a business plan
How to make a business plan for food and beverage companies (template)
How to make a business plan for your store or retail business (template)
How to make your e-commerce business plan (template)
What to include in a business plan
What should a business plan include ? Every plan is likely to be different, but there are some common pieces of information that are often included:
Business Overview
Describe what makes your company different from the market and competition.
Goals
What does the company want to achieve? Set some SMART goals that will quickly show whether the company is succeeding.
Audience and market
Who will your company supply and how will you reach them? Analyze how big the market is and who your main competitors are.
Products and prices
What will you sell and how will you price it? And, as always, compare it to your competitors.
Who is involved
Many investors say they invest in people as much as they do in the business. Share information about your team's roles, expertise, and passions.
Finance
Provide details about sales, costs, and where the investment will come from. If you are looking for investors, you should include information about potential returns.
Start of marked textShare! A business plan is a document that describes, among other things, the purpose of your company, what you are going to do and what the strategic objectives are.
Despite this, many studies and reports show that 1 in 4 companies does not have a business plan.
So, what are the benefits of business planning and how can it help businesses succeed? We'll tell you in this article.
What is a business plan?
There are numerous reasons why you might want to start a business .
You may have a czech republic email list great idea. Maybe you've always wanted to run your own company. Or, unfortunately, maybe you've lost your job.
But for your business to be a success , your passion, enthusiasm, hard work and skills must have a practical example to build on. Especially since this is about starting a new business.
And this is where your business plan comes into play .
Don't forget that having a good business plan:
You will have a guide that will define the unique selling proposition (USP) and give you clarity about the market and competition your business will face.
You'll be working towards a series of milestones that will help you grow your business . But don't forget that your plan shouldn't be a static document. Instead, you'll need to update it regularly as your business evolves, to make sure everything is moving in the right direction.
Download your FREE copy of the “Business Survival Kit for SMEs”
Benefits of writing a business plan
Jennifer O'Toole, a senior partner at the accounting firm Thomas R. Dixon, says, “A business plan is like a flight path. It lets you know where you want to go, what you want to accomplish, what you have to do to achieve your goals, and probably most importantly, what problems you can expect along the way.”
“Being able to identify potential threats, problem areas that could impact the business and being able to develop coping strategies proactively rather than reactively is key to business survival.”
And for those seeking funding, a business plan can make all the difference. Rebecca McNeil, MD for Business Lending and Enterprise at Barclays, says: “A solid plan can help with funding applications, from a business loan to alternative forms of finance and investment.”
Reasons why good business planning is not done
If it is so useful, why is it not common to prepare a business plan? Here are some common challenges:
Time
If you have a good idea of what business you want to start, it shouldn't take long to create your business plan. Keep it short and simple and choose a format that works for you.
Uncertainty
It's true that you can't know what will happen until you start a business, but a plan can help you spot potential pitfalls and understand the financial implications behind your idea.
Lack of agility
Some people think that business planning stops companies from evolving, but a good business plan should be up-to-date and adapt as you test and learn.
More articles on how to create a business plan
How to make a business plan for food and beverage companies (template)
How to make a business plan for your store or retail business (template)
How to make your e-commerce business plan (template)
What to include in a business plan
What should a business plan include ? Every plan is likely to be different, but there are some common pieces of information that are often included:
Business Overview
Describe what makes your company different from the market and competition.
Goals
What does the company want to achieve? Set some SMART goals that will quickly show whether the company is succeeding.
Audience and market
Who will your company supply and how will you reach them? Analyze how big the market is and who your main competitors are.
Products and prices
What will you sell and how will you price it? And, as always, compare it to your competitors.
Who is involved
Many investors say they invest in people as much as they do in the business. Share information about your team's roles, expertise, and passions.
Finance
Provide details about sales, costs, and where the investment will come from. If you are looking for investors, you should include information about potential returns.
Start of marked textShare! A business plan is a document that describes, among other things, the purpose of your company, what you are going to do and what the strategic objectives are.