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The
business plan is the blueprint
for your business. You wouldn't
walk over to an empty piece
of ground and just start
nailing boards together
if you wanted to build a
house. Starting a business
without a business plan
is just as foolish.
Yet
unlike a house, a business
isn't static. We often
make the mistake of thinking
of a business plan as
a single, static document
that you just put together
when you're first starting
out and then set aside.
In
actuality, the business
plan for any business
will change over time
as the business develops,
and any particular business
may have multiple business
plans as its objectives
change.
Here
are four good reasons
why you should write a
business plan:
- To test the
feasibility of your
business idea.
Writing a business plan
is the best way to test
whether or not an idea
for starting a business
is feasible, other than
going out and doing
it. In this sense, the
business plan is your
safety net; writing
a business plan can
save you a great deal
of time and money if
working through the
business plan reveals
that your business idea
is untenable. Often,
an idea for starting
a business is discarded
at the marketing analysis
or competitive analysis
stage, freeing you to
move on to a new (and
better) idea.
- To give your
new business the best
possible chance of success.
Writing a business plan
will ensure that you
pay attention to both
the broad operational
and financial objectives
of your new business
and the details, such
as budgeting and market
planning. Taking the
time to work through
the process of writing
a business plan will
make for a smoother
startup period and fewer
unforeseen problems
as your business becomes
established.
- To secure
funding/ attract investors
You're going to need
both operating and startup
capital to start a new
business and you have
no hope of getting any
money from established
financial institutions
such as banks, or from
donor organizations,
without a well developed
business plan. Established
businesses often need
money, too, to do things
such as buy new equipment
or property, or because
of market downturns.
Whether you want to
approach a bank for
a loan or attract financial
donors, having a business
plan gives you a much
better chance of getting
the money you need.
A presentation may pique
their interest, but
they'll need a well-written
document they can take
away and study before
they'll be prepared
to make any financial
commitment. Be prepared
for your business plan
to be scrutinized by
potential donors or
investors - they will
want to conduct extensive
background checks and
competitive analysis
to be certain that what's
written in your business
plan is indeed the case.
- To make business
planning manageable
and effective.
A business plan is essential
if you're thinking of
starting a business,
but it's also an important
tool for established
businesses. Viable businesses
are dynamic; they change
and grow. The company's
original business plan
needs to be revised
as new goals are set.
Reviewing the business
plan can also help you
see what goals have
been accomplished, what
changes need to be made,
or what new directions
your company's growth
should take.
In
conclusion
Writing
a business plan is time-consuming,
but it's essential if
you want to have a successful
business that's going
to survive the startup
phase. The process of
writing a business plan
can do wonders to clarify
where you've been and
where you're going.
The purpose of this module
is to give you the information
and tools you need to
write your own business
plan for your Technical
Service Centre. This module
includes lots of useful
links to help you learn
how to put your business
plan together and all
the elements that your
plan should include.
Good
Luck with writing your
own Business Plan!
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