| A business plan is your business' resume. It describes | | | | your progress and compare projections with actual |
| your business clearly and identifies your business goals. | | | | accomplishments. It is a living document that requires |
| It consists of a current and pro forma balance sheet, | | | | regular modification as you gain knowledge and |
| an income statement, and a cash flow analysis. A plan | | | | experience. |
| can help you allocate resources properly and more | | | | As a planning tool, it guides you through the various |
| importantly, it helps you make sound business | | | | stages of your business. It will help you identify possible |
| decisions. | | | | obstacles so that you can avoid them and establish |
| A comprehensive business plan is one of the | | | | alternatives - even before the event. |
| fundamental requirements when setting up a business. | | | | Not having a plan is courting disaster in the future. A |
| Many things are dependent on the plan: business loans, | | | | plan is your road map and if you are going on a long |
| line of credit from suppliers, supervision of your | | | | drive, you certainly want to have a useful roadmap |
| operation and finances, advertising, promotion and | | | | along with you. |
| marketing of your business, and most significantly, the | | | | Some people mistakenly think that a business plan is a |
| achievement of your business goals and objectives. | | | | document set in stone when it is completed, it is not. It |
| Anybody who wants to put up a business must put | | | | is a living document - you refer to it all throughout the |
| together a plan; otherwise, his business will ultimately | | | | life of your business. It needs updating at the minimum |
| fail. | | | | of twice a year, there are those who review and |
| A plan has three fundamental uses as an essential | | | | update their plans quarterly. Sensible businesspersons |
| business tool: it is a communication, management, and | | | | set aside a particular schedule to review, evaluate and |
| planning tool all at the same time. | | | | update their plan. You should do the same. |
| As a communication tool, you can use your business | | | | The plan helps you monitor your progress. By looking |
| plan to attract investment capital, secure loans or | | | | at the milestones and comparing them with those that |
| catch the attention of prospective business partners. A | | | | you have and have not achieved, you will be able to |
| detailed plan shows the potentials of a business to | | | | set more realistic and precise timeframes for future |
| grow and make a profit. It calls for a realistic | | | | objectives. You will see details of your original plan that |
| assessment of every phase of the business and | | | | did not work which need revisions or elimination and |
| allows you to show that you have carefully evaluated | | | | you will also see where you have performed with |
| and resolved possible problems and decided on | | | | excellence. |
| alternatives before you actually launch your business. | | | | Use your business plan as a tool to monitor, analyze |
| As a management tool, it helps you track, monitor and | | | | and evaluate your business. It is the solid foundation of |
| evaluate your progress. Use your plan to establish | | | | starting a business and a very useful tool to ensure |
| timelines and milestones to enable you to measure | | | | the progress and growth of your company. |