Strategic Planning

Business Plan OutlineProducts Relating to 'Business Plan Outline'

When you plan for a holiday of which destination is unknown to you, do you just jump into the car and head off? Definitely not! You look at a map and carefully plan your route - from departure point to destination. It is also more likely you would take the map with you on your journey and consult it occasionally to ensure you are still on the right route. The same principle applies when you plan to open your own business you must have a business plan . It is now not called a map but a business plan . The same principles however apply - you use it from departure of your new business until you have reached your end destination - when the business is up and running according to your business plan outline.

Most creative people hate the idea of compiling a business plan outline but the business plan outline is the most useful tool you would ever find. A business plan

is a step- by- step analysis of your business and makes you think through the whole process logically. You will have the opportunity to examine your strengths and weaknesses and opportunities. Any new business starts off with a business plan . Should you need to borrow money from a bank or financial institution you can be sure they would ask for a business plan outline. It is quite clear at this early stage that the business plan outline is a must.

Ten good reasons why a business plan is indispensable:

1. Drafting a business plan forces you to think matters through in more detail than you otherwise would.

2. The mere fact that you have taken the trouble to prepare a good business plan outline reflects careful analysis of the business s potential. This will provide you with the necessary peace of mind to drive your project according to your business plan .

3. The business plan will motivate other stakeholders to support the business. This may be the bank, partners, employees, suppliers and even customers.

4. The usefulness of a business plan outline endures well beyond the initial funding and establishing phase. If kept up to date, frequently referred to and used to track the direction the business takes, it will help you to spot problems early.

5. Regular review of the business plan necessitates the application of logical thought processes. This will have a positive impact on the quality of your management decisions.

6. Revision of the goals set in the business plan outline promotes lateral thinking by the members of your team which are your employees and facilitates the effectiveness of brainstorming sessions.

7. The business plan outline becomes a measurement and evaluation tool in the widest sense of the word. It can be used to determine which divisions within the business have met their goals. This creates benchmarks for investment decisions and performance appraisals according to the business plan outline.

8. The business plan outline facilitates staff buy-in through joint goal setting and progress tracking.

9. The business plan outline serves as an early warning system for the identification of opportunities that may otherwise be overlooked.

10. Although the business plan outline contain confidential information, it can serve as a source document for the creation of press releases and other communication aimed at the business s core functions.

A business plan outline must include the following:

1. Information about the owner: This would be a short resume.

2. What form the business would take according to the business plan outline: Whether it is going to be a sole trader, a partnership, etc.

3. A description of the product or service: What products are going to be the market of the business according to the business plan outline: Who would be the customers market and who would be the closest competitors?

4. Advertising and marketing strategy: How the business would be marketed according to the business plan .

5. Finance: How is the business going to be financed? Details of start-up capital, borrowing of money, projection of sales, over-heads, etc according to the business plan.

The secret is – the business plan need not to be a thick document. Keep it short and sweet. Remember; balance it with a mix of optimism and realism. Although you as owner and manager may delegate, you may never delegate the compiling of your business plan outline to someone else. This is your own mission and vision! It is your business plan – nobody else's.

Article Published: Saturday 14th July 2007