|Do You Have a Plan?
Purpose of a Business Plan
A business plan serves two main purposes. First, it serves as a road map for documenting the objectives, strategies and format for your business.
It is a form of verification that the entrepreneur understands the business and it also documents
the understanding of the business between all of its owners and managers. Secondly, the business plan is a requisite document for financing.
Whether you are considering buying a business or seeking financing, no formal lending or investing entity will consider
making an investment in a business without a thorough review of the business plan.
Resources for Developing a Business Plan
All business plans will differ, according to the type of business, level of resources and sophistication of
the entrepreneur, industry standards, expectations of associates, etc. However, all entrepreneurs should be
familiar with the basic elements of a business plan and the key issues that virtually all business plans would
be expected to address. There are many great resources for obtaining guidance in writing a business plan:
Your business plan will be evaluated based upon how well researched and authoritative it appears, especially
in the areas of product, marketplace, competition, and marketing. Therefore, it is crucial that you access the most credible sources of data for your business plan.
A well thought-out marketing plan is a vital part of your business plan. This includes both a marketing strategy
and a promotional plan. Some key components of marketing strategy are: product and service mix, target market, competition,
pricing, and distribution. A promotional strategy should address how to most effectively communicate with your target audience using perhaps: