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What is a Business Plan and why it is needed?
the business plan is a document that summarizes the operational and financial objectives of a business and contains the detailed plans and budgets showing how the objectives are to be realized. ani it is needed because its specific and organized information about your company. It shows all of your business associates (bankers, lenders, partners etc.) what the business ideas are exactly, how you will repay borrowed money, and helps you plan in detail all of the steps you will take now and in the future. A business plan is a crucial part of any loan application. Additionally, it informs sales personnel, suppliers, and others about your operations and goals. Click on the link below and find out from other sources why you need a business plan.
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\n. \n Sections of a BP \n. \nIt is probably wise to prepare a section-by-section outline before starting to research and write your actual plan. Once you create your o…utline, the planning process can be conducted on an organized manner. However, since no two business plans are alike, no two outlines will be alike either. As a reference point, here is a basic outline to get you started:\n. \n(1) Cover Page\n. \n(2) Statement of Confidentiality\n. \n(3) Table of Contents\n. \n(4) Executive Summary\n. \n(5) Operational Plan\n. \n(6) Marketing Plan\n. \n(7) Financial Plan\n. \n(8) Supporting Documents/Appendices\n. \nFor convenience purposes, your plan should be divided into two sections: (1) the Executive Summary (a summary of the full, more detailed business plan) and (2) the detailed plan. The Executive Summary should be no more than three pages in length, while the detailed plan may be as many as 50 pages or more depending on who will be reading it.
SWOT Analysis . A SWOT analysis is a tool that business planners use to gauge an organization and its environment. SWOT stands for strengths, weaknesses, opportunities and …threats. Strengths and weaknesses are internal factors. Opportunities and threats are external factors. To perform a SWOT analysis, consider the following:. Strengths:. What advantages do you have? What resources and contacts do you have access to? What recognitions have you received? What are your intangible assets? What do you do well?. Weaknesses:. What do you lack? What can be improved? What are some of the gaps that need to be addressed? What should be avoided?. Opportunities:. What specific opportunities are available to you to take advantage of? What are the opportunities facing your industry that you could possibly pursue? What are the trends that might open new opportunities?. Threats:. What obstacles do you face? What is your competition up to? Are the requirements for your company changing? Are you having any cash flow problems? Can any of these weaknesses seriously threaten the vitality and longevity of your business?. Carrying out a SWOT analysis can be a real eye opener. Not only will it highlight what needs to be "fixed" or immediately addressed, it will also show you what you've been doing right. While it is not a necessity, consider performing one for inclusion in your business plan.
Financial Statements in a Business Plan . As a rule of thumb, you should always include financials as part of a complete business plan package. Financial components are a m…ust when creating a business plan that is going to be presented to bankers or investors. They need to evaluate your financial projections to see whether or not your business is going to be profitable. They want to make money and are not going to invest in a business or loan any funds without seeing the bottom line - and all the numbers in between. Even if the plan is for internal uses, it should still contain financial projections. Everyone that looks at a business plan expects to see financials.. At the very least, you should include a cash flow statement, income statement and balance sheet. Before preparing your financials, you should consult with an accountant, financial advisor or other finance professional to review the financial structure of your business. Do things add up and make sense? Has everything bee properly accounted for? Assumptions are okay, as long as they coincide with industry averages and competitive benchmarks. No one expects you to hit a line drive, but you better be somewhere in the ballpark. Remember to stick with generally accepted accounting rules - don't get too creative.. Another Viewpoint . If you have all the financing you need then no, financials are not necessary. If however you want to borrow money or get investors interested then financials are not only necessary, they may be the most important part.. Having done M&A work for a Fortune 100 company I can tell you that a properly constructed set of financials can often tell an investor everything he needs to know after he has read the executive summary.. Accepting my finance background bias, a business plan without financials is just a fairy tale!. Does a business plan need to include financials? . YES! ABSOLUTELY! Profits and positive cash flow are the rewards for your efforts as an entrepreneur. That is what you work for. And the financial projections in your business plan tell you whether you expect to earn enough to make it worth your while.. Your business plan is also the road map you use to make your business work. It describes why and how you think that your business is going to be successful. Why else would you make a business plan?. After the planning comes the execution of the plan. This is the proof of the pudding. And what better way to determine whether the pudding you planned tastes good than via the profits you make.. So you need to check during the execution of your plan whether your plan was a good plan or needs to be adjusted. Why would you adjust your plan? Because profits are not in line with what you want. You know that profits are not in line with what you want by comparing actual profits with your planned profits. You can only make that comparison if you have made those financial projections when you wrote your business plan. That is why you absolutely need to include financial projections in your business plan.. If you have trouble preparing those projections ask your accountant or a financial expert for help. But make those projections and include them in your business plan so you can determine whether you are on course to the profits you need or need to adjust your business plan.
\n. \n Home-Based Business Plans \n. \nAll businesses should be built on the foundations of a solid business plan - even those that are home-based. Regardless of locati…on, you'll need to have a business plan if you are going to seek funding. A business plan will also help keep you on track. Using a business plan enables you to refocus your efforts if necessary and fine tune your strategies. With a business plan, you can identify potential problems before they occur and know exactly what steps to take to fix them. The bottom line is that planning helps you to organize all aspects of running a venture, so that you can meet your goals and objectives without getting lost along the way. Remember, your home-based business should be run in the same professional manner as one that is operated away from the home. So make sure you have a business plan that is USED and updated when necessary.
how much money to start a wedding planning business...and from where i can get money for my first wedding.
All business need to have a business plan, to help them manage their business. Without one businesses are essentially rudderless. Business planning has numerous benefits for b…usinesses -incl . Helps Staff Focus on Key Objectives . Helps ensure all are 'on the same page' . Can be used to manage performance. . Can be used to manage cashflow. . Can be used as an early warning sign . Can be used to assess internal ideas In short business planning is an essential activity for all businesses.
I would have to say yes. While you don't need to have a a 100 page business plan filled with tons of research and number crunching. Its good to jot down the basics of your ide…a so you can see the bigger picture. Also, creating this plan will help you stay on track. If opening say a brick and mortar store, a bank will want to see a plan. Again, it does not have to be this enormous document. Describe the type of business it is, add a little research in this industry, the monies needed to open your business from rent, supplies, insurance, licenses,etc. There are plenty of online sources such as S.C.O.R.E. and SBA that can help you write one up.
organize business goals, ideas, strategies . have a tool for possible investors . create an evaluation tool for checking the progress of thebusiness .
Usually, a business plan is needed, when a company is requesting aloan, or approaching investors. However, you should write abusiness plan, if you are serious about your busin…ess and you wantto have a tool to check your progress and evaluate the viability ofyour company.
if you want i wouldnt agree but sure why not
The executive summary, operation analysis, management control
1)capital 2)intelligence 3)hardwork and 4)puncuality
So they don't do stuff randomly and have a plan to do something each day
I am 22 year old man from Alappuzha ,Kerala.I was interested in business. I wanted to start a new business. so, i want to create new ideas or business plan
Before you create a business plan, you need an objective this can be anything but a goal where you know what you want to achieve, after that you need to know the audience that… will buy or use your product this is very important as to the prices and structure of your business plan
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The business plan should ideally contain all your answers,solutions and forecasts for all the issues and decisions that astartup or new business must act upon. There are Free …Business PlanSamples and Templates available for help. First of all Know YourAudience and write plan accordingly.There are lots of Elements ofgood business plan.. Few of them would be CompanyDescription, Market Analysis, Organization & Management plan,Service or Product Line, Marketing & Sales, Funding Request,Financial Projections etc.. To have a complete knowledge do gothrough clogs online. One which I found useful is How to write abusiness plan on Eoma.com website. DO check.. Have a great business plan..