What is Business Plan

A business plan is an essential roadmap for business success. This living document generally projects 3-5 years ahead and outlines the route a company intends to take to grow revenues

1. The point of business is to make money and improve quality of life. The business plan is designed to help reveal this purpose by means of financial and analytic, and to show prospective business partners and investors how their money will be used and when to expect a return on their investment. If reassure investors are an important part of the success of your business, do not skimp on this important element.
2. Well-written plans can help forecast future financial needs. While nothing is certain, knowing at least where to take your business for it to be successful is a good start in the right direction.
    
3. Resources, especially when economies are tight, may be few and far between. Knowing how best to spend scarce resources is important for the longevity of any business. Business plans can help to outline essential spending needs when money is tight.
    
4. Poor planning often causes the death of many great ideas. In order to ensure that your business ideas do not result in failure, a business plan can help keep a business on target and ensure that you're spending money efficiently to keep things moving. A business plan can also help you delineate ideas and work through some of the potential pitfalls before you or others make big investments of time and money.
    
5. For start-ups, a business plan is absolutely necessary. Most funding sources won’t even consider making an investment these days without one. The reasons for this are clear – businesses that take the time to build a solid business plan are more apt to stay on target and spend wisely while money is tight as the business grows. There is plenty of time later for fancy upgrades and improvements; when starting out, it is best to think small and grow large.
    
6. While a business plan may be a necessary component of success for many businesses, don’t think of it as only a one-time affair. Business plans should be re-addressed annually and updated based on new circumstances and fiscal realities. Using a business plan as an organizational road map helps ensure long-term business success and keep leaders focused on the mission, goals and long-term growth goals of the business.
    
7. A comprehensive business plan includes marketing projections. Research data can help leaders identify and focus on target markets and the best ways to reach them. Businesses should keep a keen eye on demographic changes and update their business plans regularly to keep up with changes.
    
8. A business plan can help to channel resources, in terms of both time and money. This focused direction helps ensure success by helping leaders capitalize on expenses to meet long-term goals.
    
9. Don’t forget to consider a business plan as an indispensible business tool for future product and service plans. Business plans help leaders stay focused on the best decisions for today, tomorrow and well into the future.
    
10. Having a formal business plan says a lot about how seriously a company takes its business. For investors, consumers and potential business partners, this means that business leaders recognize the company's potential for success and are serious about fostering an environment that will help it to grow. Consider these players when developing a business plan for a complete and rounded business approach