This is a guide on how to start a business plan. A business plan defines your business exactly, identifies your goals, and serves as your company’s resume. The basic components include a current and pro-forma balance sheet, an income statement, and a cash flow analysis. It helps you to properly allocate resources, handle unexpected complications, and make good business decisions. Because it provides specific and organized information about your company and how you can repay your loan, a good business plan is a critical part of any loan application. In addition, it informs sales personnel, suppliers, and others about your operations and objectives.
Plan your work
The importance of a comprehensive, thoughtful business plan cannot be overestimated. There is much to do: external funding, credit from suppliers, management of your operations and finances, promotion and marketing of your business, and achieving your goals and objectives.
Despite the critical importance of the business plan, many entrepreneurs get their feet into the writing process. They argue that their business is changing or that they don’t have enough time for a business plan to be effective. But just as a builder does not start construction without a plan, interested business owners should not rush into new ventures without a business plan.
Before writing your business plan, consider the following basic questions:
What service or product does your business provide and what needs to be met?
Who are potential customers for your product or service and why are they buying it from you?
How do you reach your potential customers?
Where do you get the financial resources to start your business?