Why Do We Have To Make A Business Plan

By: Unknown on 2:50 PM

The business plan is the initial stage should be done by a prospective entrepreneur. We will discuss about things that should exist in a business plan.

Definition of a Business Plan

The business plan is a formal statement and written regarding the objectives of a business and how to achieve that goal. In fact, many people fail to make a business plan when going to do business. Some people believe that is important from a business is run alone. Do you agree with this statement?

According to the author's personal opinion, I strongly disagree when doing business one important thing is the run or just do it. But the road without a plan is unwise actions. Whether by making a business plan can guarantee a business will be successful? Of course, there is no certainty. So why do we have to make a business plan ? Some of the reasons why we need a business plan is:

Make a Blue Print Business Plan

A business plan can be used as a blueprint for your business. Companies that will be made to have any purpose (vision)? How do I achieve this goal? Who are the members of the team involved? When to start a business can meet its objectives?
Here are 8 things the importance of a business plan :

1. The clarity of what will be done.     
2. Getting to know the structure and strategy of the company.     
3. Get a detailed explanation of the market.     
4. Knowing how to market a business.     
5. Digging initial idea or thought.     
6. Testing business calculations.     
7. Sharpen the operational system.     
8. Getting to know the competitors

Sources of funding from third parties

Sources of funding from third parties such as banking, investor or venture capital require a written document to find businesses that will be created. Therefore, the first challenge a prospective entrepreneur is creating a business plan that sells.
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There are many versions that explains about the business and the business plan. One is the opinion of an expert Garret Sutton in business law and author of The ABC's of Writing Winning Business Plan, noted that "Business is a plan, not a product or procedure." Business planning has to answer three important questions for investors or creditors:

• If I can make money by investing in this business? 
• This question would like trying to convince the investor or creditor regarding the risks and returns, if they invest in our business.    
• Do I like and understand where I invest in this business?    
• Do I trust the people with whom I invest?

Communicating with the whole Own Shares

It could be in a business that we make, involving several parties, ie there are several business associates. Therefore, a business plan can be used to provide the same perception about the business.

 

Basics of Business Plan

What should be written or should exist in a business plan . Here's Writer will include some things that should be there. A detailed explanation of each section will be discussed in the next article.

 

Executive Summary

Executive Summary talk about what business will be created, the vision and mission, business goals. The simple part is the conclusion part of a business plan . One trick of creating a business plan selling is selling for an executive summary.

Company background   

The background of the company told me to know the data of the company, the people behind the business, organizational structure, consultant or expert who accompanies, the composition of shareholders (applies if the business is incorporated limited liability company).

Market Analysis and Marketing

Market analysis and marketing strategies we talked about marketing the product. In a follow-up usually people use marketing plans (marketing plan) to explain detill or marketing strategy.

Production analysis

The analysis describes the production system to our business operations. For example business we are kind of production or manufacturing, note how the process of acceptance of orders, production, distribution of goods and billing. If business is business services We, we must clearly identify how we distribute services to buyers.

Analysis of Human Resources

Analysis of human resources tell people of competence needed, the number of people required. Human resource development plan. For some prospective entrepreneurs of this section is usually taken for granted, but this is what one of the pacesetters in the business.

Financial Analysis

Financial analysis shows a projection (forecasting) income and expenses, payback (break even point), the return on investment (return on investment), the calculation of the use of leverage (leverage) and others.

Business Development Plan

Business development plan is one part that is seen important for investors alone. Prospective investors will see how much effort that we will create. It includes an exit plan or exit strategy of our business.

Business Risk

Business risks are the things that the risks related to our business, such as operational risk, business risk, liquidity risk or financial risk and others. Business risks do not just stop at the identification of risks, but also the strategy we face or reduce the impact of such risks.