A business plan is a document created to help the owners of the business outline how they intend to operate their day to day business activities. It is a business guide and communication tool. It tells investors, bankers and sponsors how resources can be put into a business. It would be a good idea when developing a Business Plan
to evaluate the product development life cycle
or software development life cycle of your goods. Also, consistently review the basics of How to write a business plan.
A business plan has a quality of living long after it has been created. It is a living document that could be changed as it evolves along with the business. It clearly communicates what the business operator intends to do, how they will achieve it, and what milestones are needed to measure performance. This is what Tom Harris talks about in his book “A Practical Guide to Starting and Running a New Business” (Springer, 2006).
Harris gives a financial model created by a team or a group of individuals with common objectives and goals, but someone has to take charge of its production. A business plan is an essential tool and requires ongoing adjustments as the business develops. It has no qualities of remaining static. Changes are made as the business discloses its operations. It is updated often as knowledge of market expands. Its ownership remains a property of the whole team.
Reasons for Writing a Business Plan
- To serve as a tool for communicating ones ideas to others e.g. investors, partners or employees.
- It is also meant to be a tool for guiding the business operation.
- It forms a foundation for financing proposals.
- It allows assessing and measuring of performance as business progress.
- To serve as a guiding tool in setting short and long term business goals.
- It is for identification of strength and weaknesses of the idea.
- It is for easy evaluation on the feasibility of business ideas.
Content of a Business Plan
There are no strict rules on what the content should contain. What is essential is presenting the best and logical step by step of ideas in your business plan. Let the story flow logically and lead your audience naturally to conclusions. Hit the nail on the head and never imitate a meandering river in communicating or giving your side of situation. Remember readers of your business plan are good time managers. They feel good when they get know what you want them to know quickly.