Guidelines to Writing a Business Plan
The Reasons for Developing a Business Plan
- Management is forced to realistically evaluate strengths and weaknesses of
the new venture concept or the business, and to assess the competitiveness of
the firm. Brakes are applied to concepts that may sound great, but have inherent
problems.
- For new ventures, management is forced to consider all aspects of the prospective
business, reducing the number of mistakes that will be made.
- Planning sets a direction for the business, focusing the business on where
it is going AND not going, providing measurable goals to assess progress.
- Areas that are "out of control" in a business or have received inadequate
attention will be identified.
- Weaknesses in the management information system are highlighted.
- One of the most beneficial reasons for many entrepreneurs that are looking
for funding is that a well-written plan makes the borrowing or capitalization
process easier, and more successful.
Reasons People Avoid Developing a Business Plan
There are many common reasons why people will put off this planning process.
People find they lack the time to put into the process. Some have a disbelief
in the value of the process or belief that unwritten plans are sufficient. Others
just lack the tools and know how of writing a business plan.
The Planning Process
- Determine the objective of planning.
- Gather information. Worksheets are helpful in assembling large amounts of
data from various sources.
- Outline the plan and assemble information into plan segments.
- Add form to the plan or hire a consultant to do editing. When using software
that is designed to help you write a business plan, make sure to tailor your
specific plan to the needs of your business.
- A timetable for completion of the segments must be set and enforced.
*The plan must be flexible and the process must be recognized as an on-going
effort, not something done once a year. Ownership of the plan must be created
in the personnel who are impacted.
Please continue with the Elements of a Business Plan
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