What is a Business Plan

A business plan is a document which result from management planning, and should involve the whole organization. It documents a plan to outline specific requirements needed to achieve specific goals and targets. A well structured Business Plan will address specific action programs for the achievement of the aims and objectives of the business enterprise. Planning establishes objectives or standards that facilitate control. If we are unsure of what are trying to achieve, how can we determine whether we have achieved it?

The Business Plan results from deciding in advance what the :

• Vision
• Objectives
• Direction

of the business will be, and how you intend getting there, by when, and who will do what, to contribute to reaching the objectives.

A plan is therefore, predetermined course of action for reaching objectives. Its purpose is to increase the probability of reaching objectives, by reducing the need to make ad hoc decisions when the business is faced with dangers and problems in the future.

• Planning can increase effectiveness (the probability of reaching agreed objectives) and efficiency (the cost of doing so)
• Planning will not guarantee success, but research clearly shows that it increases the probability of succeeding.
• Plans are needed when additional finance is being sought, but their greatest value is as a blueprint or road map for managing growth and change.
• A Business Plan should be structured in such a way as to create a format, that is easily followed and is acceptable to major lending institutions.

The key elements of a Business Plan include :

• A complete review of existing development concepts
• Product and resource base evaluation
• Corporate structure
• Corporate objectives
• Existing marketing technique and financial analysis

The Business Plan should then outline an Action Plan incorporating short and long term goals for growing and developing the business. Most importantly the Business Plan should be a dynamic document which is regularly reviewed and updated - it should not sit in the bookshelf as a space filler!

What is the Philosophy and Vision for your business ??