Business Plans

 

Too many businesses make business plans only when they have to. Unless a bank or investors want to look at a business plan, there isn’t likely to be a plan written. The busier you are, the more you need to plan. If you are always putting out fires, you should build fire breaks or a sprinkler system. You can lose the whole forest (business) for too much attention to the individual trees.

What is a Business Plan?           

A business plan is any plan that works for a business to look ahead, allocate resources, focus on key points, and prepare for problems and opportunities. Business existed long before computers, spreadsheets, and detailed projections. So did business plans.
Unfortunately, people think of business plans first for starting a new business or applying for business loans. They are also vital for running a business, whether or not the business needs new loans or new investments. Businesses need plans to optimize growth and development according to plans and priorities.

Use of Business Plans:

  • Define and fix objectives, and programs to achieve those objectives.
  • Create regular business review and course correction.
  • Define a new business.
  • Support a loan application.
  • Define agreements between partners.
  • Set a value on a business for sale or legal purposes.
  • Evaluate a new product line, promotion, or expansion.

Keys to Better Business Plans:

“Do’s”
  1. Use a business plan to set concrete goals, responsibilities, and deadline to guide your business.
  2. A good business plan assigns tasks to people or departments and sets milestones and deadlines for tracking implementation.
  3. A practical business plan includes 10 parts implementation for every one part strategy.
  4. As part of the implementation of a business plan, it should provide a forum for regular review and course corrections.
  5. Good business plans are practical.
“Don’t s”
* Don’t use a business plan to show how much you know business.
* Nobody reads a long – winded business plan: not bankers, bosses, nor venture capitalists. Today, nobody is interested in a business plan more than 50 pages long.
NEED ANY HELP WITH YOUR BUSINESS PLAN OR WANT TO REVIEW AN EXISTING BUSINESS PLAN CONTACT US NOW AT: Email: money@global.co.za or call us on 084 583 3143