What is a Business Plan?
Before describing what a business plan is, it is good to understand generally what a “Plan” is and how to use one. There are many definitions available but in summary a plan can be described as “a set of actions to be taken with specific timing and resources in order to achieve goals and objectives”. This definition leaves out a very important point. If things do not go according to plan, it does NOT mean that the plan has failed.
Plans are always supposed to be dynamic. Simply put, a plan must change as time passes because as time passes, everything else changes. If you intended to do something one way, and find yourself having to do it some other way, this is perfectly fine. Your plan is your guide. It is a place that you return to frequently, to check what was supposed to be done and to help you decide what to do next. As long as you achieve the desired results, your plan is working. (Regardless of how much you have had to change it).
That being said, a business plan is a …… Plan for your Business. Typically, it will describe actions, timing, resources, goals and objectives in the areas listed below that are common to ALL businesses. It will also contain a lot of information unique to your business which is the VALUE in your business.
- Business Profile (Owners, Partnerships and Legal Structure)
- Operations & Human Resources (Organizational Chart and Job Descriptions)
- Marketing & Sales Plans (Choosing Customers, Advertising and Pricing)
- Accounts & Financial Projections (Recording Transactions and Planning Income Statements)
- Risk Analysis (Your Strengths, Weaknesses, Opportunities and Threats)
… and other in depth areas of strategic planning. Time to start writing…
Feel free to contact us for assistance in preparing your business plan.