Writing a Business Plan
With business failing at an alarming rate the need has never been greater to start off on the right foot with a clear understanding of exactly what you hope to achieve and how you will do it. A well thought out and carefully structured business plan is the key to the long-term success of any business. Whether you are just starting a business, buying one already established or perhaps in need of extra finance for expansion you will need a business plan.
Understanding the Need for a Business Plan
Reasons for a business plan
Your reason for compiling a plan will be different for each situation:
- If you are starting a new business you will require a plan to clearly assess every aspect of the business and show how it will succeed.
- If you are buying an already established business you will need to identify the strengths and weaknesses of the business to decide if you will be able to make it a success.
- If you are already up and running and in need of extra finance you will need a plan to convince those putting capital into your business that you can and will succeed.
- If you are applying for one of the many grants available.
Who will read your plan?
When you begin to compile a business plan you must always remember who the plan is for. Just as an author must always remember who will read his books so you must remember who will read your business plan. With this in mind you must present your plan in a clear and logical format. This will enable the recipient to achieve a clear understanding of your business and make a decision based on the information you have supplied.
Your business plan will benefit the various types of people who will all be using your plan as a basis for making decisions:
- your bank manager
- alternative providers of finance
- business advisory organisations
- friends and colleagues who will invest in your business
- yourself and your work colleagues who will be running the business and using the plan on a daily basis.
