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Why a Business Plan is Considered as a First Step of Business?

Narendra Kumar

| Updated: Jun 14, 2019 | Category: Business Plan

Business Plan

Business plan is a layman of your future business.In the present scenario it is of utmost important to know about the competition and the competitors. A Business Planning is executed to analyze the present and future prospects of the business and potential competitors entering into the market. Every businessman must know the strength and weakness of his business to sustain in the market. A Business plan is the layout of how the business survives and the grows in the future.

What is a Business Plan?

A Businesses plan is a structured plan reflecting the strength, objectives, marketing strategies, profit scenario and budget of the business. It is document that describes the business, its services, financing activities and all the other details required for the success of the business. The execution and performance of the task can be done easily through a Businesses Plan.

Business Planning

Drafting a plan for business is an exercise for executing the ideas and helps in understanding the nature and scope of business and basic requirements and resources to start the business. The Business planning helps in executing the activities to be performed in the future. It helps the person to skill up and to spot the gap where the person requires help in reaching the goals.

Key Points of a Business Plan

A Business plan is a document that creates the trust of a potential investor and the feasibility of any business in which he/she is keen on investing. Business plans is a major document for funding. The key points of Business planning are –

  • Summary and Description of Business – The plan of Business must include the summary of what business deals into i.e. the picture of the business activities.
  • Research and analysis of the market and the competitors – Proper analysis on the industry and competitors dealing in the same business.
  • Details of management and product/service details – Plan of business must include the structure of the organization and the product and services in which it is dealing and offering to the customers.
  • Anticipation of funds requirement – The plan of business helps in identifying the present as well as the future needs of fund that is required for the smooth working of the business.
  • Projection of finance and returns on investment – The document helps in projecting and evaluating the efficiency of investment done by the potential buyer and helps in forecasting the expenses and profits of the business.
  • Impact on Society – How the business planning will affect the society is the major key element of the success of any business.i.e. The plan should cover every type of readers and potential buyers that they can easily link their requirement with the businesses plan.
  • Corporate social responsibility policy – If applicable in case of existing business.

Things to be Considered before Drafting a Business Plan

Businesses plan provides a direction of what a business need. The success of the organization depends on how you write a business plan. For a perfect business plan following aspect should be kept in mind –

  • Deep Analysis and research of business, products, its market segments.
  • Route Map of the Business Plan.
  • Description of why the company is different from other competitive business along with the company profile.
  • Details of the company’s Website, address and potential customer base.
  • Projection report of expenses and profits that the business is going to make which eventually increases the confidence of the investors that they can earn money out of it.
  • Strategies to achieve the market base and demands of customers.
  • Business planning should be projected in such a way that it directly reaches out to the reader.
  • Comprehensive and adaptable on each aspect.
  • Key factors and implementation to execute the business plan.
  • Creating an emotional connection with others, why this business plan is beneficial for them.
Business Planning Steps

Is it important to have a Business Plan?

Business Planning is the first step of any business as it includes the business concept, planning, research, marketing, staffing. A Business plan helps in performing the activities and to mitigate the risk factor.

From the Businessman’s Point of View –

  • Helps in setting the strategies to target the market.
  • Setting the priorities of the business.
  • Helps in finding out the difference between the planned structure and the actual one.
  • The alignment is done in such a way to find out the loopholes and to get an idea of a day to day dealing.
  • Helps in reaching the milestones, every successful milestone is the next step to achieve the goal.
  • Regular check and a reminder to focus on core strength and to meet out the strategical goals.

From the Reader’s Point of View-

  • Helps in boosting the investment.
  • Increases the confidence of the reader if the business planning is accurate.
  • Address major concerns and requirement of the potential investor/audience.
  • It reflects the greater ability of the company which encourages potential buyers.

Why Business Plan is considered as a Planning Document and 1st step of business?

Every Business requires a layout before establishing its place of business,as it helps the company to achieve its goal. Planning is a forecasting of the business which includes all the scenario whether (good or bad) and how to react and deal with the situation.A Business planning helps in preparing the series of steps to achieve the specific targets which ultimately reduces the efforts and time in accomplishing the goals.

Business Plan

Whether it is a small company or a big company it is important to have a business plan and a vision is of a successful future. It identifies and reflects the strength and weaknesses of the business and also captures the risk factor involved in it and how to mitigate the risk. A Business planning provides a direction for executing the operations whether ongoing or future.

What is an effective Business Plan?

Effective Business Plan must –

  • Capture the whole audience, even if the plan is for yourself.
  • Proper research on the market, competitors, demand for the product and dealers of a similar business.
  • A Business planning should be précised which can be easily read and understood by the readers.
  • Prepared on the basis of Market analysis.
  • Include Financial layout.

What is Business Outline in the Business Planning?

A Business outline involves the following steps –

Conclusion

Business planning is the pillar of the success of any business.Before executing a business plan, it is important to conduct a SWOT analysis. It vary from business to business depend upon the nature of business. It is required by startups, existing businesses and helps in updating the financial activities for developing the new product market.

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If you have any questions or concerns, please contact Enterslice

Narendra Kumar

Experienced Finance and Legal Professional with 12+ Years of Experience in Legal, Finance, Fintech, Blockchain, and Revenue Management.

Business Plan Consultant


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