What is a business plan?
The purpose of a business plan is not only used for internal business operation but also getting creditors. A business plan is just not a phrase with only two words it is the vision of your life and a plain pathway to journey where you would like to reach. Think about, Bil Gates, Steve Jobs, or Mark Zuckerberg, what are the silver stone to achieve their target, nothing a plan and an idea to enrich himself in an invincible position. A business plan is the combination of some comprehensive action schedules and innovative ideas with the practical phenomenon to establish a self-oriented business or a corporate business. It is the meaning of “What is a business plan”. After understanding the concept of a business plan we must know the purpose of a business plan. Without knowing the purpose, the plan becomes worthless. It generally includes the followings –
- The company
- Marketing plan
- Product and service plan
- Market penetration and sales plan
- Management and organization plan
- Management system and control plan
- Financial plan
- Growth plan
- Investors highlights
Purpose of a business plan:
The objectives and targets of a business plan are very straightforward and goal oriented. The main purpose of a business plan is to guide the entrepreneur form where he should start and where he must reach. The purpose of preparing a business plan is to determine the chronological action plan to start a business. The business plan helps to identify the opportunity, threats, strength, and weakness of the organization. The entrepreneur will easily know the product details, market details, contingency plan, competition strategy, a source of financing, and the management mechanism after the launching product to the market. Writing down a business plan helps you explain your views and form the steps you need to take to be effective in your business. There are a number of pieces that all have to come together to make your business lucrative. A business plan ensures that you won’t skip any important steps that could ruin your labors down the line. Be specific, Use assess able milestones, accountable duties, and trackball performance opportunities, for a beginner. A business plan is clearly predicted the big picture and identify potential problems before you make errors.
The other objectives of a business plan are:
- To start-up business, the start-up plan discovers cost estimation of a possible idea. It identifies preliminary cost items and their management. This plan signifies sunk costs which are irrecoverable.
- To flourish an idea of financing, i, e, sources of fund, cost of fund, and how to utilize the fund effectively.
- To provide an idea about the breakeven point of your sales target and estimate of return at the end of the point.
- To express details idea about the control systems and control mechanism about the business.
- To give an idea about the growth plan or corporate plan for the organization.
- To guide day to day operating activities business plan plays a vital role.
- To compare the periodical performance of a company such plan is crucial.
- To get a government license, it helps the authority to give permission.
- To measure management efficacy, it is considered as a valuable evident.
Steps of making a business plan:
A business plan is not a work by time. It is a systematic and chronological work. To make a successful business plan following steps should be followed-
- Set a specific goal of your business
- Find out the major and non-major activity of your business
- Select the key personnel of the organization
- Elucidate the core products of your business
- Make an extensive analysis of the financing
- Prepare a contingency plan and
- Finally, write a business plan
The importance of Business plan:
The importance of the business plan will not end with few words. In one word, it is your success plan. It will help you to determine the main objective of your business. The business plan provides you with an extensive idea about business, success and your victory. The successful business plan is the better half of your business. So, before starting, you should have to make a complete and integrated business plan. Otherwise, your capital, your thoughts, your idea, and your dream will be turned into an impracticable dream.
Template of Business Plan:
In a sample business plan template, the following elements include-
- Executive Summary
- Introduction – a general idea about the business
- The Company Details
- Company Name
- Products and Services
- Name of products
- Products description
- Value proposition
- Management Plan
- Board of Directors
- Executive body
- Employee Staffs
- Market Focus
- Customer choice
- Competitors Analysis
- SWOT Analysis
- Financial Plan
- Cost Analysis
- Source of fund
- Breakeven analysis
- Cost of Fund
Making a business plan is making you hope to live. So, it is the guideline of your vision. A successful business plan will include all aspects like organizational, financial and strategical approach. The future of a company can be projected by understanding the concept of a business plan and its purposes. The template of the business plan should be designed to create a business plan. As we mentioned earlier the steps of a business plan which is a guide to stick to the pathway. You can generate an idea from business plan examples. So let’s start and go for victory.