Understanding The Business Plan
There has been a rise in the number of young entrepreneurs who have chosen to set up markets for various economic activities in recent years. This is of course very commendable. It shows that young people are working to break or reduce their dependence level in the society. This is something to be encouraged.
Now, when talking or considering any economic activity, the first priority should include gain profit) and a consistent flow of it. To arrive at this objective one must design a plan and method of execution, taking into consideration every aspect of that particular economic activity. This is where the business plan development comes in.
A business plan (development) is a document that provides specific information on a business idea to the entrepreneur, investor(s) and financial institutions. What this means is that BPD must explore every aspect of a proposed business idea, from start-up or expansion, management and sustenance; every detail must be covered and in both hard and soft copies, not just in one’s head as is usually the case with most people I have come in contact with. When you have an idea, your next step is to put it down. I call it the “offloading technique.” This clears up your head to make room for new ideas.
The business plan
A business plan is a comprehensive and technically written planning document which clearly describes the objectives of an existing or proposed business applying for financial assistance. The plan outlines what and how and from where the resources needed. It is also a document that describes an organization’s current status and plans for several years into the future. It generally projects future opportunities for the organization and maps the financial, operations, marketing and organization strategies that will enable the organization to achieve its goals.
For further clarification on what a business plan development does, let us look at the objectives of a business plan as listed below:
- Project future opportunities for the business
- Identify markets
- Identify customers
- Maps the marketing strategies
- Maps the operational strategies
- Maps the organizational and management strategies
- Project expenditures and finances required
- Project revenue and cost over a specified duration
The content of a business plan
The content of any good business plan is no different from that of a hand-book and would include:
- Executive summery
- General overview of the business
- Marketing plan
- Operational/production plan
- Management and organization plan
- Personal financial statement
- Star-up expenses and capitalization
- Financial plan
There are further sub-divisions, however, may idea is to give you a semi-comprehensive idea of what a business plan development involves.