What is a Business Plan?
A business plan is a formal business goal. It is a mindset of attainable goals having studied by the business owners. The said plan is explaining the step by step process on how they will attain such target of the business and it helps you sell your company to the target market.
Business plans contain the background information of the organization including the management. For me it is an essential factor in the growth of your company. Good planning of business plan helps you obtain and boost your confidence to the industry.
Business plans differ depending of what types of the business they are planning to build. Some of business types are: Hotel and restaurant business plan, Internet café business plan, Real state business plan and many more. In planning business goals they also considered two factors; if it is profitable and non-profitable business.
Profitable business usually focuses on the planning on how to generate income while the non-profitable organization focused to the mission and vision. Sample of profitable organizations are bank, hotels, restaurant, private schools and the likes, while non-profitable are government organizations.
What is the Business Plan Outline Content?
An outline usually contains execution to the business plan and extensive details on the cash flow.
Here are the suggested content of the business plan outline:
- Cover sheet
- Mission Statement
- Competitiveness of the Product or Service in the market
- Principal Steps required to ensure Success
- Market Analysis
- Financial analysis that reveals a first-class break-even analysis
- Other supporting documents
What are the Key factor affecting the value of your business?
- External factors – These includes state of the economy, competitors (how many are you, with the same line of business in the market) and the scope of your market.
- Financial factor – your company expenses, projected sales or profits, the estimated future expenses and company financial history.
- Assets and liabilities – Includes your company assets and debt
- People – Generally it refers to Management and staff
Having a good business plan helps you to grow in the business industry, but remember that even if you have a good plan but there is no proper execution to the management and staff.
All of your efforts in constructing a strategic business plan are useless.