A business without a business plan is doomed from the start. However, with a well thought out business plan, you will not waste money or time. A business plan is a road map or blueprint that can help you to focus on the necessary elements of growing a business.
The Elements of a Business Plan
A business plan helps to determine the direction you wish to go in and it identifies the market you are targeting. A business plan also lays out definitive goals and how you plan to achieve those goals. A business plan is also vital in terms of looking for financing for your business.
Source: Missouri Small Business Development Centers
A business plan needs to include the following:
-an executive summary
-the background and history of your business
-a description of your company (be as vivid and colorful as you can be)
-the value proposition of your business
-a marketing analysis (this must be a combination of a market development plan and a competitive analysis)
-a development plan
-a production and operations assessment
-a human resources and management assessment (and a solid plan for such)
-a financial assessment of the business, as well as a projected assessment
-an implementation plan
-a resources list and a proposed deal for would-be investors
-a strategy for survival (which takes into consideration mitigation strategies and risks that are a part of the business as a whole)
-a strategy for growth
-an exit strategy (if need be)
-a summary of the business
-appendices for the business
Primer for a Basic Business Plan
You can create a very basic business plan for your company in eight simple steps:
1. Business Name- Choose a name that is synonymous with your products and/or services and is easy to pronounce and spell. Always make it memorable and clients will remember it.
2. Vision- What is your hope for your company in five or 10 years time? Consider the ways in which you would like to expand.
3. Mission Statement- Do not forget to write one of these. A mission statement defines your business in a couple of sentences. It also delineates what your business is all about and how it is unique in the competitive marketplace.
4. Objectives and Goals- What are your objectives for your company? What do you hope to achieve? Set quantifiable goals with definitive time lines. Be as precise as possible.
5. SWOT (Strengths, Weaknesses, Opportunities and Threats) - Are you prepared for the good and the bad? Take stock of the entire SWOT of your business in order to figure out how to not just survive, but thrive. This will help you to build on the good aspects of your business and cope better with the weaknesses.
6. Strategic Action Plan- This plan is crucial as it includes your strategies for marketing and sales of your products and services. (To learn what you need to know for this read “How to Create Your Web Site Marketing Plan” at http://www.isitebuild.com/ewebsitemarketingplan)
7. Financial Plan- Devising a budget will help you to focus, hone your skills and make your long and short term goals a reality. It will also enable you to have much better control of the money that is flowing into your business.
8. Measurements and Evaluation- Take a look at your goals and break them down into smaller parts that are easier to achieve step-by-step. Make sure your plan can be measured in terms that are quantifiable, such as by parts or on a weekly or monthly basis. Be as specific as you possibly can be.
Source: BPlans.com