Skip to main content

Why is business plan important?



If you are starting a business, having a business plan is a must but it is also important if you already have established business. The biggest mistake is to see business plan as something static, with time it will change just like your business. In the growth phase good  plan will help you with forecasting sales and raising capital. Later, it can help you to see what goals you have accomplished and what new ones you need to add. Your business plan must be well thought so it represent your company in the best possible way.

Good written business plan let others know that you are serious and that you can handle all that running a business requires from you. There are couple of necessary elements that your business plan needs to have: executive summary,  business/industry description, market analysis, competitive analysis, sales and marketing strategies, organization management, operating and financial plan including funding requirements.

The executive summary is the first thing in the business plan but it is usually written last. Basically it is the short description that represent the key elements of your business. Business and industry description gives the overview of the industry sector that your business will be part of and its position within that industry. In market analysis you inform the reader about your target market, profiles of your customers so you can make prediction how much of your good will be sold. Competitive analysis examines your competitors and the ways you could overcome them. Explanation of your sales strategies, advertising and promotion plans fit in the marketing and sales section. Showing off your team is also important part of your business plan just like the financial plan and funding requirements that should make realistic projections.

There are several good reason why business plan matters. I am sure that you already guessed it just from reading the elements of a good and detailed business plan. First is that you can test the feasibility of your business idea. When you put the things on paper it will be easier for you to see if your business idea is unattainable so you will save a lot of time and money. Market and competitive analysis are usually critical in a business plan. Writing a business plan will ensure that you pay attention to every detail and in that way you can avoid many beginner mistakes. It is very likely that your business will need funding. Having a good business plan can really help you to getting the money from financial institution to keep your business operating or expand it. Also good business plan will help you attract venture capitalists and angel investors.

Even though it can be time-consuming to write a good business plan your efforts will be rewarded.  You will be able to identify potential problems, survive startup phase and prepare for success.

Labels:

Comments

Post a Comment

Popular posts from this blog

OTC stocks more difficult to trade and deposit

  Mina Mar Group helps micro-cap companies structure their growth. Micro-capitalized companies are those with less than $50,000,000 in equity, sometimes under $1,000,000. Restructuring involves raising money (both debt and stock), and planning how they will eventually harvest that wealth. If you’re a founder or investor, the secret to harvesting your equity is to possess assets with a developed market for their sale; up until recently, that market was the public market. Now, Over-The-Counter Securities (“OTC Securities”) don’t serve that purpose since, unless you’re a tech unicorn doing an IPO, there are essentially no ways to sell the shares you’ve invested in. OTC securities – how they were deposited five years ago. Brokerages all around the country have tightened compliance over the past five years to the point where no one may deposit share certificates into their brokerage accounts, even if they can prove that they paid for them. Consider the following demand from a secondary ...
Post a Comment
Read more

All-cash, All-stock offer

An acquisition strategy known as an “all-cash, all-stock offer” requires the buyer to commit to purchasing all of the target company’s outstanding shares for a certain amount in cash. It is also characterized as buying all of a company’s outstanding shares from its shareholders in exchange for payment. All-cash, all-stock offers are typically taken into consideration as a strategy to complete an acquisition. This could be an excellent technique the acquiring corporation might use to make the transaction appear sweet and persuade shareholders who are on the fence to accept the sale by offering a premium above the cost at which the shares are now trading. So if it’s that case, if indeed the company was purchased at a premium, then shareholders of the target company could experience an increase in the value of their shares. Even when we talk about cash deals, a stock value for the target firm is discussed, and that value may be considerably higher than its current market price. Therefore,...
Post a Comment
Read more

Company Disclosures

When we speak about disclosures and what they represent in financial terms, that actually refers to providing the public with all relevant information about a company on time.  So relevant information includes facts, figures, dates, procedures, innovation, etc, which means any information regarding a company that can probably impact an investor’s decision. As a result, it is necessary to comprehend that public company directors and officers are in charge of company disclosures and securing investors with complete and valid information. Access to material info enables investors to make information-based investment decisions, which is vital for efficient market pricing and on which state and federal securities are based.  Anytime new stocks are issued to the public, the SEC requisite disclosures of relevant financial and business info to possible investors, with exemptions provided for private placements and small issues. Integrated disclosure structure is the name give...
Post a Comment
Read more