| A business plan is the most important and often | | | | correcting its weaknesses. |
| overlooked part of running or starting a business, | | | | 3) Communicate effectively to Management and |
| expanding an existing business or obtaining finance for | | | | Employees clear expectations of a Company's |
| a business. If a plan is developed effectively, the | | | | performance and priorities to ensure a coordinated |
| success rate for the purpose of the plan rises | | | | execution of a Company's Strategic Plan. |
| exponentially, whether it is to start, expand or run a | | | | 4) An Effective, Comprehensive Plan coordinates and |
| business, and/or obtain finance for the business. | | | | assures consistency between a Company's various |
| A well developed Business Plan leaves less room for | | | | divisions and departments to bring about the |
| errors and failure. While you cannot predict everything | | | | successful operation of the Company's various units. |
| that happens in a company's future, a good Business | | | | 5) A Plan provides a mechanism to measure a firm's |
| Plan helps you to avoid certain pitfalls, overcome | | | | and individual's performance. It establishes a clear |
| obstacles and anticipate and create business | | | | standard for determining whether actual performance |
| opportunities. When you do encounter obstacles and | | | | is good, bad or neutral. |
| problems, having a Plan in place, integrated into the | | | | 6) A Plan establishes a system for making key |
| business, provides you with a system and mechanism | | | | decisions in the Management process of a Company. |
| to effectively deal with challenges, often turning these | | | | As new developments, opportunities and difficulties |
| challenges into manageable situations or even future | | | | arise, the Business Plan provides a solid structure to |
| opportunities. | | | | evaluate the impact of developments and opportunities |
| Let's start with the fundamental questions: Why have | | | | on the operations and performance of the Company |
| a Business Plan? What can a Plan do for my | | | | as a whole and in its individual departments and units. |
| company? | | | | 7) A Plan's development process will educate and |
| First, a Business Plan helps you run a Business and is | | | | motivate a Company's employees. Management, |
| the roadmap to business success. This is the primary | | | | Executives and Key People learn more about a |
| reason for a Plan, and the plan should be initially written | | | | Company's Operation and the direct relationship of |
| from this standpoint. However, there are many other | | | | their areas of responsibility toward the achievement of |
| beneficial reasons for developing and implementing a | | | | a Company's goals. This is achieved through analyzing |
| plan. A Business Plan forces the various departments | | | | variables like past performance or the impact of |
| in your company to work together to implement a | | | | trends and developments, while developing Action |
| synergistic Strategic Plan. A well developed plan helps | | | | Plans for the future success of the Company. The |
| your Sales Team close more deals and provides them | | | | process solidifies your people's commitment and |
| effective tools to use in the field with your customers. | | | | motivation toward achieving the Company's Strategic |
| A Plan helps your customers understand the direction | | | | Plan. |
| your Company is taking, encouraging them to become | | | | External Uses of a Business Plan |
| "partners" in your business' success. Your Plan can | | | | 1) A Plan can update and educate outside parties (i.e. |
| help you solidify relationships with necessary suppliers, | | | | investors, shareholders, suppliers, customers, regulators, |
| helping them to more effectively understand how to | | | | legislators, etc.) regarding the structure, organization, |
| contribute to your Company's growth. A Plan can also | | | | objectives, goals and performance of your Company. |
| effectively assist in obtaining the necessary finance to | | | | 2) A Plan can secure finance and investment to fund |
| start or grow your Company. | | | | your Company. |
| Business Plan Uses | | | | 3) A well executed Plan can preempt your competition, |
| There are different Business Plan formats and | | | | making barriers to entry apparent. |
| purposes for various circumstances and situations. It is | | | | 4) Solidify your customer relationships making them |
| recommended to first develop a Comprehensive Plan | | | | true partners in your Company's products and service |
| to effectively and successfully run your Business, | | | | offerings, innovation, research and development, and |
| Venture or Projects. Once the Comprehensive Plan is | | | | most importantly, your growth. |
| completed, you can take certain parts of the Plan to | | | | 5) A Plan provides your important suppliers insight into |
| form other Business Plans for various purposes and | | | | your Company so they can help you manage costs |
| situations, such as a Funding Business Plan for a Bank | | | | and promote growth. A slight change in a supplier's |
| or Venture Capital Firm. A good Business Plan | | | | offering or terms can have a dramatic effect on your |
| Workbook will take you step by step in developing a | | | | Company's profitability. |
| Comprehensive Plan, which you will be able to "adjust" | | | | 6) A Plan is a sales tool, assisting your Sales Team to |
| for various purposes and uses beyond the effective | | | | promote understanding throughout your customer |
| management of your company. | | | | base of your Company's direction, competitiveness |
| Internal Uses of a Business Plan | | | | and uniqueness. An integrated Business Plan enables |
| 1) Identifying the strengths and weaknesses of a | | | | your Marketing Team and Sales Team to open new |
| company's operation and potential problem areas. | | | | markets and opportunities and close more deals. |
| 2) Improved company performance results from | | | | 7) The Plan demonstrates to third parties your |
| developing and implementing Strategies which | | | | Company's core accountability, beliefs and integrity. |
| simultaneously builds on a Company's strengths and | | | | |