Elements of Business Plan
* A business plan is a formal statement, or series of statements, clearly identifying the objectives and goals of a business and outlining the strategies to be used in order to achieve these aims.
* A business plan aims to set out steps which must be taken if a business is to achieve its objectives.
* The plan is continually evaluated and adjusted as the circumstances change and as the business grows.
* A business plan lays the foundation upon which a business can begin or grow.
* There are two types of business plans:
* Informal planning – Is planning that is not written down. Common in small businesses, where planned direction of the business is known only by the owner or is communicated to employees by word of mouth. Often leads to misunderstandings, as not everyone is clear of the company’s direction or how it plans to get there.
* Formal planning – Involves a series of documents which are generally given to employees, detailing the goals of the business and the strategies which will be used to achieve them.
* Formal planning range in length from short-term plans (less than one year) to medium term plans (between one and five years), to long term plans (more than five years).
* Business planning becomes more complex the larger a business becomes.
“If you fail to plan, you plan to fail”
Top Ten Tips for Writing a Business Plan
1. Write from the audience’s perspective