The definition of a Business Plan- For every business, large and small, it is the vital first step. It is the blueprint that sets you going towards your goals. Look upon it as the roadmap that tells you and the world how you expect your company to achieve its stated objectives.
A business plan has often been defined as a comprehensive document that clearly describes how the entrepreneur intends to operate his business.
You can also define a business plan as an important communication tool that details the financial strategy and goals of the organization. This definition is true for both existing and proposed business.
When you write a small business plan it should include a detailed outline of the resources needed to realize the developmental objectives of the business.
What are these resources, how will they be gathered, and from where will they be sourced, a business plan tells you all. This is why a business plan is vital to secure small business finanace and small business loans.
For the company management, the business plan should include identification of markets, listing of customers, calculation of expenditures to be incurred and a computation of required investment of funds for business activities based on projected revenues and costs over a specified timeline.
The document is specifically designed to attract capital investment. Every time you approach a lending program for assistance, go armed with your business plan. Many banks insist on seeing the statement before they consider your loan application.
Potential investors and bank managers pore over the document scheduling your proposed business activities over the coming year, or stated time period. Projection figures for sales, profit, turnover, ownership and key personnel data contained in the plan help them decide if your company is a safe bet for investment.
In the case of small business, the writing of the small business plan extends to an examination of proposed products, target markets, concerned industries, management and marketing policies, production and financial requirements.
The business plans of giant companies can be defined as an expression of their corporate vision. Success and credibility of such a plan is ensured when the vision is truly global and draws from the present success of the private company.
Since its inception, Growthink Business Plan Development has developed over 350 business plans.