Effective business plans specifically define the business, pinpoint the goals, and serve as a springboard into marketing. Most business plans contain a few key components including a current and pro forma balance sheet, an income statement, and a cash flow analysis. These components help you properly disseminate resources, deal with unexpected difficulties, and make sound business decisions.
Additionally, a well-written, well-constructed business plan can be a significant asset when pursuing a loan. In fact, because first-rate business plans provide precise and organized details about your company and how you will ultimately reimburse borrowed money, a solid business plan is an essential piece of any loan application. Furthermore, it informs sales personnel, suppliers, and others parties involved about your operations and objectives.
Business Plans Are Invaluable
I cannot overstate the value of a thorough, well-thought out business plan. Business and marketing plans can determine how much outside funding your business receives, the level of credit allotted by your suppliers, management of your business operations and finances, the promotion and marketing of your business, and achievement of your goals and objectives. Taking that into consideration, do you honestly believe you are equipped to write your own business plan?
When a construction company or real estate developer builds a new house, the company first puts together or has someone else put together a blueprint. You cannot erect a house or a building without a blueprint. Well, technically you could, but the structure probably would not stand the test of time. It would eventually collapse. The same rule applies for businesses. Business development plans are a company's blueprint; they are essential, not optional.
If you are thinking about starting your own business, currently have a business in operation, or need to improve your existing business, you need to ask yourself if you can effectively write your own business plan. Many of us like to do things ourselves, but savvy business owners realize that other people do things better than they do. They understand and apply the concept of leverage; they leverage their efforts through employees and other business partners.
Building Effective Business Plans
Unless you consistently write business and marketing plans, you should probably consider outsourcing this responsibility. Having started my own business, I tried to put together several business plans. These business plans did very little in helping me secure loans or any other funding for that matter. I had an idea of what to do, but my plans were devoid of necessary specifics. I finally did some due diligence and outsourced this responsibility to a reputable company that writes business plans as a business.
Currently, my business is doing quite well thanks in large part to my business plan. Without it my small business would have followed the path of most new businesses; it would have floundered and died within the first year. Even successful companies should put together some sort of business plan. When things are going well, a new plan can help keep your business on the right path or even illuminate unexploited opportunities.
It's important to note that business plans are about results. What is the plan worth? At the end of the day, the business plan is worth the choices you make because of it. A solid plan is rife with details that can be calculated and tracked because tracking generates results.
