Thursday, November 4, 2010

Why Should You Have a Business Plan?

by: Simon Weaver
Are you planning to start a new business? Or are you considering
expanding your current business and require a bank loan or
investment from outsiders?

If you are going to look for an investment of capital it is quite
likely that you will be required to have a business plan. If you
are starting a business, despite the work involved, a business
plan can prepare you for the obstacles ahead and help ensure your
success.

A business plan is something that many small businesses fail to
create, however, many business owners are adamant that having a
written business plan is one of the keys to their present
success. Creating a business plan forces you to contemplate
possible obstacles to your business and prepares you to find
solutions that will help you to overcome them.

To find investors or get a bank loan, they will want to see that
you have the experience or resources to run the business. They
will want to see your projected income as well as your suggested
repayment plan already laid out. Taking the time to do this is
not only important for them, but it gives you a measuring tool to
verify if your business is growing properly. You can gage your
success on how close to the plan your business has actually
performed. Perhaps you'll do worse, or perhaps you'll do better,
either way it helps you determine how well your business is
getting on.

If you have never seen a business plan before you may be
concerned that is is too difficult a proposition for you to
manage on your own.

While there are services available where you can hire someone to
write a business plan for you, depending on your needs it may be
wise to familiarize yourself with a business plan's layout. This
will not only help you to provide the necessary information, but
may encourage you to try your own hand at it.

There's a free tool at www.bdc.ca which will assist you in
creating a business plan. Some of the topics you will be required
to explain are your Market, Customer, Competition, Marketing
Plan, Research & Development along with financial forecasts. You
may consider hiring someone to help you with your financial
sheets after completing the written part of the Business Plan.

Your Business Plan will become your guide and silent business
partner - indicating where you need to improve and helping you
stay one step ahead of your competition. Make it a priority to
have this crucial road map for your business

About the author:
About the author:
-------------------------------------------------------
Simon Weaver can help YOU
start your own profitable business on the Internet
within the next 24 hours! To learn more, visit:
http://www.YourOwnFreeBusiness.com/pips.html

1 comment:

  1. The Right Business Plan

    I remember many years ago I decided to open a business, while I was in my first year of college. At the time I was in the middle of a small business class and we were talking about organizing a business and specifically about business plans. I really thought I had a handle on this writing thing and would be able to crank out a plan that was investor ready in no time. After three months I realized that I really didn't know the first thing about preparing a business plan and honestly to this day that first plan is still not completed. Since then I have written hundreds of plans for all different businesses and industries.

    As I look back on that experience I realize that I really didn't have the right mindset to complete that plan. I have a fear of failure, which was causing me to stall each time I would sit down to write. I find that many new business owners feel the same way or just realize that they don't have the competencies to complete their own plan and wind up not moving forward with the project or moving forward without having planned out the process. It is very important that businesses prepare or have prepared a plan that can be easily implemented by management. Unfortunately, approximately 70% of businesses begin operation without a business plan and consequently nearly 50% of businesses discontinue operations by the fifth year. Although, there are many factors in a businesses closure there is a simple correlation that can be drawn between planning and business success.

    If you are one of the many new businesses getting ready to start a new business project make sure that you consider using a business plan. And if you are like me and find yourself unable to prepare the plan yourself then make sure that you go to http://www.solutionbusinessplans.com for information on getting your plan prepared.

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