Create
a
Business Plan
A business plan can be looked upon
as a roadmap or a blueprint. If properly prepared, it can
be an invaluable planning tool as well as a means of measuring
your progress toward your business objectives.
Many people assume that a business
plan is only required for those interested in obtaining third
party financing. Nothing could be further from the truth.
The formulation of a solid business plan should be viewed
as an integral part of any business start-up. It is one of
the best opportunities you will have to thoroughly evaluate
your ideas and perform substantial market research.
Free Info on our recommended Medical Transcription Program leading to an exciting home based medical transcription career
The more time and effort that you
put into the development of a business plan, the greater will
be the likelihood of your success in your business venture.
You should not feel guilty about spending weeks or even months
in preparation for your "official" entry into the business
world.
Charging impulsively onto the business
battlefield with an ill-formed idea and without a well thought
out plan will lead quickly to financial and emotional distress.
Many costly mistakes can be avoided with a little planning.
In business, impatience is more often than not the mother
of misfortune.
Four basic purposes of a business plan
- It serves as a blueprint for
organizing your business.
- It allows you to monitor the
progress of your business toward its financial objectives.
- It inspires confidence and imparts
vital information to prospective investors, lenders, partners,
and key employees.
- It imbues your enterprise with
a sense of vision and purpose.
A good business plan will be one
of your primary strategic planning tools. As such, it should
be a living, breathing document. It is not meant to be completed
and then shelved. It should be referred to frequently and
modified over time to reflect the changing needs and direction
of your business.
Elements of a Sound Business Plan
1) Mission Statement:
States the purpose and fundamental
mission of your company.
2) Business Description:
Describes the scope and nature
of your business.
3) Marketing Strategies, Objectives &
Assumptions:
Outlines and measures the market
opportunity. Forecasts sales, and evaluates competition, pricing,
and distribution.
4) Operational Strategies, Objectives
& Assumptions:
Evaluates human resource requirements
and assesses facility, production and inventory capabilities
and requirements.
5) Financial Strategies, Objectives &
Assumptions:
Projects start-up capital requirements.
Analyzes expected cash flows and working capital requirements.
Produces a break even analysis and formulates a target date
for profitability. Sets realistic profit objectives.
6) Goals and Objectives:
Outlines overall goals and objectives
of the business and provides timeframes for their achievement.
7) Risks & Opportunities:
Honestly evaluates the financial,
operational and market risks facing your company and discusses
the ways in which these risks can be mitigated. Identifies
special opportunities available to your company and discusses
how your business will capitalize on those opportunities.
8) Reporting and Monitoring Mechanisms:
Sets in place reporting mechanisms
to ensure that business results are continually monitored
and evaluated against goals and objectives.
Free Info on our recommended Medical Transcription Program leading to an exciting home based medical transcription career
Making Your Business Legal
| 
