WHAT IS THE PURPOSE OF A BUSINESS PLAN?
Do you know the primary purpose of writing a business plan? You don’t just write a business plan to keep, there must be a purpose for the business plan. What is the importance of a business plan towards success?
A well written Business plan is the document that is created for planning out concrete and specific details about a business. They vary in sizes and can range from a very few statements to even more than a 100-page document with various sections, table of contents and also contains a title page.
A comprehensive business plan will contain 3 distinct sections.
- The Business Concept
- The Marketing section
- The Financial section
These are further broken down into more components, which are summary or overview of the business plan, the description of the business, competition analysis, market strategies, design and development, financial information and management.
Even if you are to write a 1-page business plan, it must have its importance as well purpose for you to be able to achieve success at your business.
CONTENTS OF A BUSINESS PLAN
The written business plan for a business venture must be driven to the particular industry or business. However you can’t undervalue the essentialcontents of a business plan, which will include the following
- THE COVER PAGE: The cover page of a business plan will contain the following: Company name, Logo, address and phone number, contact person, date and state of incorporation and nondisclosure statement documents.
- TABLE OF CONTENTS: This is the directory where the reader of your business plan will go to get referred to any particular page where you have information about your business plan
- THE EXECUTIVE SUMMARY: The executive summary of the business plan is the summary or overview of the whole content of the business plan
- BACKGROUND AND PURPOSE: This will contain the history of the organization, the current state of the company, the productive and service and then the business objectives
- MARKET ANALYSIS: The market analysis section of the business plan will contain information about the industry or market, specific market, the competition the business will face and then the sales forecasts
- PRODUCTS AND SERVICE DEVELOPMENT: This will contain information about production processes, research and development, quality assurance measures and contingency plans.
- FINANCIAL DATA
- ORGANIZATION STRUCTURE
- RISK FACTORS
THE OVERALL PURPOSE OF WRITING A BUSINESS PLAN
Your business plan is the blue-print that will guide you in the running of your business. There are different purposes of a business plan in healthcare for instance. Of which there are 2 major purposes that that will propel you to write a business plan for your business.
- The business plan will serve as a guide for you to adhere to the vision of the company
- The business plan is written to serve as a means to get financial supports from money lenders such as banks, financiers, investors as well as family members
The secondary purposes of a business plan will be highlighted as follows:
- FOCUS AND BEIGN ORGANIZED: Your business plan will help you to stay focused and organized. A well written business plan ensures that you don’t jump the important steps and processes of the business, that could eventually derail you along the line.
- HELPS YOU STAY ON TRACK: After you have developed your business plan, you are expected to refer to it occasionally to guide you in your decision making process, so that you don’t miss out on any important details as you carry on your business.
- FOR THE BASIC PURPOSE OF GOALS CLARIFICATION: The bsiness plan will guide you in defining your goals and also help you to design the steps and means through which you will achieve these goals.
- PREPARATION FOR THE FUTURE: When you highlight your goals and design concret plans on how you will achieve them, the business will guide you in preparing for the future. A well written business plan will talk about the actions you will take in the future when unforeseen occurrences come into the line.
- ATTRACT TEAM MEMBERS: A very important purpose of a business plan is to get partners to work with you in achieving your dreams for the business. You can share your plans with executive class of people to convince them about the potential your business holds and make them join you in the pursuit of growth and success in the business.
- COMPANY MANAGEMENT: A business plan can act as a tool that you can refer to from time to time to ensure that your business in on track with achieving goals, meeting sales targets and operational milestones.
A well written business plan will help you achieve faster success in your business if strictly adhered to. It will serve as a guide when things begin to go awry and you can always refer to the plan to put the organization back on track at all times. The major purpose of the business plan cannot be overlooked, it is very important that you keep this at the back of your mind and also let your employees be carried along about the goals and visions of the company as stated in the business plan