March 4th, 2013
A business plan is a formal document indicating a set of company goals, the plan for achieving those set goals and a description why the management believe that those goals are possible. Business plans are essentially strategic. You will get to a point in the future (usually three to five years out) in time when your business has a different set of resources and abilities as well as greater productivity and increased assets. This plan will show how you got from here to here. You should think before writing it, after you should start writing the business plan. Lastly, enhance the business plan.
There are three questions you should ask yourself before writing the business plan. The most important question you should ask is what success looks like. But there are out of people who don’t think about asking this question. Most people think that success is measured by the growth, profits you have, and how much money is in the bank. In a standard assumption, if the average person looks over the business deal you would see a lot more people that care about other things. In an article, By Tim Berry he gave an example about what does success look like. In the example he stated that, “I know people who built their businesses to give them a way to be at home when the kids get out of school, or to have the freedom to coach a kids' soccer team.” The question he asked was, “Is your goal more money or enough money? Will you measure success by achieving financial independence or control of your work schedule?” This point was to say that many try to started business just to prove a point and other just try doing what their last boss didn’t do or didn’t try to do.
The second question you should ask is, do you want to do it yourself or build a team. This has a lot to do with personal style and preference. With this question a lot of people would normally want to own it entirely themselves, so that they can make all the main decision. They can easily win or lose. If you decide to develop a team then it would be easy for idea to get investment and grow faster if having two or three other team members with different skills and experience. Owning a business yourself, or with a team can possibly change the nature of a business.
Final question is how to find outside investment or bootstrap. If you don't have startup experience and an interesting market, then outside investment is not possible. Most of the ideas probably won’t happen without major investment. Bootstrapping is another way of saying owning and doing it yourself. This mean that you’re going have to scale the business down to a manageable level. A lot people don’t think during this time. This would consider them to borrow money, but in the end they are going have to pay is back. Then the lender will not have any ownership in the business. Business owner sometimes have to choose between a rock and a hard place saying this means that either they can invest or not. If they choose to not invest then their business would grow very slowly. Investor usually became partners, then the boss role would extend. You can also consider doing tradeoffs. This depends on who you are, what your business will be, and what do you want. You’re able to answer the following questions, then heading in the right direction.
There are seven essential section you should do while writing the business plan. This will help you decide what should be include, how to work the numbers, and etc. The executive summary should tell the reader what you want. The summary clearly states what you’re asking for. You would have to provide a synopsis in your business plan. The executive summary should have key elements provided in it. On http://www.entrepreneur.com/article/38308-1 the key elements are: 1. Business concept. Describes the business, its product and the market it will serve. It should point out just exactly what will be sold, to whom and