The reading level for this article is Moderate
A business plan is something that every company should have and every aspiring start up company should make. It pretty much lays down a strong foundation for a company to rest on and build off of. A well-designed business plan will get many problems, seen or unforeseen, solved before they ever crystallize and will set ground rules for you and/or your employees to abide by – ultimately forming your company culture. The following is a short overview about what a business plan is and why it is important, as well as some tips on developing a well-structured one.
- Define your business
- What does your business do?
- Company hours?
- Who is your target market?
- What is your competitive advantage?
- Identify company aspirations
- How will the company profit?
- Anticipated growth?
- Who is your competition?
- Estimated financial statements
- Balance sheet
- Income statement
- Statement of cash flows
- Cases in need of financial backing, a business plan should have a pay back schedule for the investors
Having a business plan, like anything else, is not a full-proof tactic against having a failure for a company. However, a business plan will highly improve your chances of staying in the green.