A business plan is a written document that describes your business, its objectives, and strategies, the market you are targeting and your financial forecast. It is important to have a business plan because it helps you set realistic goals, secure external funding, measure your success, clarify operational requirements and establish reasonable financial forecasts. Preparing your plan will also help you focus on how to operate your new business and give it the best chance for success.
Securing financial assistance to start your new business will be directly related to the strength of your business plan. To be considered a viable candidate to receive funds from a financial institution or investors, you must demonstrate that you understand every aspect of your business, and its ability to generate profit.
A business plan is more than just something to show lenders and investors; it is also necessary to help you plan for the growth and progress of your business. Your business’s success can depend on your plans for the future.
Listed below are examples of questions to ask yourself when writing your business plan:
How will I generate a profit?
How will I run the business if sales are low or if profits are down?
Who is my competition, and how will we coexist?
Who is my target market?