If you have decided to start your own business, one of the first things that you need to do is to work on a business plan. The person reading the executive summary does not have time to read your entire plan and report, hence making it as simple as possible is necessary. You would be well served to take the time to identify everything that you and some trusted advisors think could possibly go wrong, and develop some redundant contingency plans for addressing these issues.
A thorough business plan should have the information to serve as a financial proposal and should be accepted by most lenders. 6 Completing mergers and acquisitions- Whether selling your company or acquiring another one, a business plan is the primary tool that will be scrutinized to establish credibility.
Ideally, cost analysis of the various processes and systems should be included, but often, current financial information and projections are used in the plan. Various factors like market research, branding, sales promotion, advertising, pricing strategies, consumer behavior, etc., also form important aspects of marketing.
Running a business without a formal business plan is financial suicide. This summary should give an overview of both long and short term financial goals. Ideally, you’ll manage your finances regularly and can look, at any time, to see where the business is financially.
Market Analysis and Marketing Strategy – Discuss the target market of your business and your strategy on how to penetrate that market. You, the owner of the business, should write the plan, whether you are using the business plan to seek financial resources or evaluate future growth, to define a mission or give guidance for running the business.