Business plans are important

I thought I would quickly write about what business plans are and their importance since I did mention them in my last post and some people have already asked about them.

What is a business plan?
A business plan is basically a document that outlines your business goals and how you are going to achieve them. It is important to write plans down in a document rather than keep them in your head because then you can refer back to it later to see what worked and what didn't. Business plans are most commonly prepared at the start of a business but they are equally crucial no matter where your business is in its life cycle since you should always be aiming for your next goal.

Why do I need a business plan?
People are usually forced to create one because they need to borrow money to start their business and it is a bank requirement to see your business plan. Sometimes landlords (in shopping centres particularly) will also ask to see one before they offer you a lease for your business premises.

Regardless of whether you are required to show it to your bank or landlord, all business owners should have a plan in place so you know where to prioritise your time and efforts.

What is in a business plan?
It really depends on you as some people like to write long term goals whereas other people like to keep goals between one and five years. Regardless of the time frame, your business plan needs to address how you are going to achieve those goals and more detailed plans will actually contain some of the following:

• A marketing plan
• Finance requirements and budgets
• Operation procedures
• Human resource strategy
• Strategies and contingency plans to overcome possible threats

Business plans are important documents and is a vital tool for business owners especially when the going gets tough and they feel as if they are losing control. If you would like help writing or updating your business plan then contact me so we can get started straight away because...