Overview
You have decided to take
a trip. The trip will be an exciting but risky one into unknown lands.
The journey may be fulfilling, but it will require you to invest time,
energy and money. One of the first things you will probably want to
do is to chart your course on a map. By mapping out your journey you
will be able to make decisions about what you need to take with you,
which direction you will be heading, and how many miles you can reasonably
cover each day. Planning your trip will help you make better use of
your investments of time, energy and money. It will make the journey
less risky and more enjoyable.
Deciding to start a business
is like embarking on a journey, a journey that can be very fulfilling.
To make the most of your trip you should map out a plan, a business
plan.
Sometimes entrepreneurs,
in their enthusiasm to start their business, don't want to take the
time and energy to develop a business plan. But starting a business
without developing a plan is like taking a long distance trip without
a map.
The purpose for developing
a business plan is not to simply have a document. The purpose of a
business plan is to research your business and commit your strategies
to writing. The business plan will serve as a guide during the lifetime
of the business. It will help you to decide on directions to take
and decisions to make. It will provide you with the tools you need
to analyze problems and innovate. It will give you clear targets to
aim for and will help to measure your success.
Another important reason
to write a business plan is that it will be required if you are going
to seek financing. Bankers and investors alike will want detailed
information on all aspects of your company to assess the viability
of their investment. A well thought out business plan shows that you
are serious and committed to your business. It is proof that you are
interested in the future of your business and committed to making
it work.
One benefit of developing
a business plan is what you will learn while doing it. You will gain
insights in marketing, distribution and your customer's needs. You
will make decisions that will give your business a positive start.
You will be able to predict when the business will be profitable.
The rest of this chapter
will help you to develop your business plan one step at a time. Think
through the questions asked. If you don't have answers or are unsure
about decisions you make along the way, seek advise from experts,
do research at the public library, read helpful books and publications,
then make choices which express your entrepreneurial spirit, values
and goals.
Let's get started...
The Business
Plan
Your business plan will
cover four key areas of your business. They include:
- Summary of purpose of
the business
- Management and operations
- Marketing and sales
- Financial projections
Next
chapter...
