“What a mind can conceive, the mind can achieve”
This powerful quote is also applied to a well planned business. A business plan is a necessity to achieve success in the business market. A very well written description of your business’s future will help you letting learn and grow your business day by day.
Business plans are basically based on strategies and should be well written. You have to think and decide the starting point keeping the available resources and abilities in mind to achieve a certain goal, or to reach the destination point of your business plan. The originality of your idea and realistic approach are very crucial factors. If you take your steps in business one by one, then the possibility of success is higher than to be in a hurry and execute your plan without giving a thought of its pros and cons. You should write a business plan keeping it for next four to five years at least. Your plan actually acts as a mirror of business that shows how you will get from zero to profits.
There are many people who think they don’t need a business plan because they have enough funds and manpower needed from family and friends to establish a business. According to them the plan is only a money raising tool. In fact, a business plan is much more important than that. A business Plan is one of the most important tools for arranging all the activities of business together. A business plan is used to monitor progress, identifying the weaknesses, correcting them, controlling the business activities and providing the direction to all the business activities. It also plays an important role in the sales, recruitment, selection, training and development aspects.
Once the plan has been written, it is essential to review the entire plan and its activities before the execution of the plan. The activities involving marketing strategies, market scenario, value positioning, employee requirement, financial plans and so on must be reviewed. This reviewing process helps in identifying the important tasks, or activities which were left out in the previous plans.
As per the business plan, marketing and operational targets and objectives are also established. When you yourself are the founder, then only you will be responsible for the failure. Your plan should be a baseline for executing and monitoring your progress. The best thing to analyze your business is that you learn and grow and that learning enables you to perform better and achieve greater results in the future.
A business plan is not only a tool for observing and correcting the after effects of business activities rather a business plan is a blueprint which gives the necessary direction to all the business activities like sales, profits, staffing, financing etc. towards the attainment of common goals.
It is obvious that a well-written business plan is an importantly attractive element to the talent. When some investors want to see and understand your business, you can show them your well-structured business plan that gives them a complete overview and that will give them the confidence to invest in your business. They understand that you are completely aware of your business goals and you can deliver the results you promise. Their response towards the plan will be positive. Banks and other financial institutions also help the companies who have a well structured and reviewed business plan. The business plan can be useful in many business areas or activities like self-management, business operations, hiring and selecting the employees and so on. It’s a big mistake and dangerous for your business if you skip the Business planning phase. It is essential to consider all the implications of not having a business plan. Hence, the planning and creation of a business plan are of utmost importance for any business.
After the successful planning of a plan, the execution stage and time must be decided. While creating the business plan you should consider the following:
• Hire a business planner
• Understand the elements and contents of the business plan
• Ensure that they have each activity important for a business.
• Coordinate and communicate with various departments
• Make sure the idea is original, realistic and accurate.
• Feedback and suggestions must be taken from all the important people involved in the business operations.
• Write, Print and bind the plan properly
• Execute the plan as decided.
• Review and Update the business plan at the regular intervals.
The business plan process forces the entrepreneur to consider and efficiently execute the company’s operations and also forcing him/ her to consider his/ her future, rather than merely the present day-to-day operations. There is one important element in a business plan, though not compulsory but it’s good to add this in a business plan, this is known as The Appendix.
What comprises in the appendix of a business plan?
Here is the list of few documents which can be required by the business at any stage must be included in the appendix:
• Graphic and pictorial presentation of the data about various departments
• Client/ supplier agreements or contracts
• Licenses, Copyrights, registration or trademark documentation
• Brand Logos, Product illustrations and packaging samples
• The facts collected from field research
• Skills and Qualification certificates of every team member
• Address and other necessary information about the registrar, accountants, financial advisors etc.
• Financial, legal and business history
Preparation of an Appendix or a supplementary plan is not mandatory. It is not very much required, but still it can be used in the future to convince the investors as it contains all the necessary information and documents which can prove the authenticity and originality of the business plan.