You and Your Business Plan

When you plan for a holiday of which the destination is unknown to you, do you just jump into the car and head off? Definitely not! You look at a map and carefully plan your route - from departure point to destination. It is also more likely you would take the map with you on your journey and consult it occasionally to ensure you are still on the right route. The same principle applies when you plan to start your own business - you must have a business plan - you use it from departure point of your new business until you have reached your end destination - when the business is up and running.

A good business plan is therefore the cornerstone of any business venture. One of its benefits is to give you the opportunity to address the key questions in the planning stages of your business. When properly handled, it can act as a compelling argument when you start your efforts to obtain financing at financial institutions.

Your business plan should clearly state what type of business it is going to be, the services or products it would provide as well as your potential market niche. And, always keep track of your direct competitors as well as a market plan to market and promote your business when it is up and running.

The business plan should contain a business analysis, financial forecasts based on scientific deductions as well as experience - either you own experience or experience obtained from those who already travelled that road. Your available budget will dictate all the afore-mentioned analysis, forecasts and assumptions. This will also dictate the amount of finance you would require as well as information on how you plan to obtain financing for your business.

It is important to include any other information about your business that might help any institution to consider you favourable for financing. Remember, your business plan will tell them whether you are good prospect or not.

Most creative people hate the idea of compiling a business plan but it is the most useful tool you would ever find. The secret is - the business plan need not to be a thick document. Keep it short and sweet. Remember; balance it with a mix of optimism and realism. If you are new in the business world it would be a good idea to get some professional assistance. You would find them in the yellow pages or on the Internet and they won't cost you an arm and a leg. But, should you get professional assistance indeed, stay in control and dictate to them what you want. This is your own mission and vision! It is your business plan - nobody else's.