Business Plan BasicsA
business plan precisely defines your business,
identifies your goals, and serves as your firm's resume.
The basic components include a current and pro forma
balance sheet, an income statement, and a cash flow
analysis. It helps you allocate resources properly,
handle unforeseen complications, and make good business
decisions. Because it provides specific and organized
information about your company and how you will repay
borrowed money, a good business plan is a crucial part
of any loan application. Additionally, it informs sales
personnel, suppliers, and others about your operations
and goals.
Plan Your Work The importance of
a comprehensive, thoughtful business plan cannot be
overemphasized. Much hinges on it: outside funding,
credit from suppliers, management of your operation and
finances, promotion and marketing of your business, and
achievement of your goals and objectives.
Despite the critical importance of a business plan, many
entrepreneurs drag their feet when it comes to preparing
a written document. They argue that their marketplace
changes too fast for a business plan to be useful or
that they just don't have enough time. But just as a
builder won't begin construction without a blueprint,
eager business owners shouldn't rush into new ventures
without a business plan.
Before you begin
writing your business plan, consider four core
questions: - What
service or product does your business provide and
what needs does it fill?
-
Who are the potential customers for
your product or service and why will they purchase
it from you?
-
How will you reach your potential
customers?
-
Where will you get the financial resources to start
your business?
Sample Business Plans |
Incorporation
Software
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