Student Business Plan Competition Article

The Importance Of Writing Up A Business Plan

Starting up a business is not something so easy, especially when you can’t predict what’s going to happen next; whether you’ll be successful or go down the drain. But if you have a plan prior to everything, you most probably can handle things very well.

Regardless of the ownership, whether you own it on your own or it’s a partnership with your affiliates, business plans still apply. You basically need the plan of action to make sure everyone equally understands the purpose of business as much as you do. It will also serve as a tool to give confidence to your investors and lenders to commit themselves into your business fearlessly. In short, business plans make you foresee the future of your company, at least to ensure that you’re not taking a stupid step ahead by helping you analyze the business idea. A bit of research is usually involved, but this hard work is very helpful indeed.

Research here refers to processes of examining annual reports of other companies that is in the same industry as you’re getting involved into, conducting surveys on customer groups, establishing test markets to see the acceptance of your business among consumers.

By writing a business plan, you will not only see the prospects of the business, but also the costs involved. This will prepare you to get the adequate capital money for start up and you can also see if you could afford to run such a business on a long term basis. This could also mean that you can see the necessary amount of funds needed, and in such cases you can write plans to raise those funds too.

As said before, one of the main things concerned about writing a business plan is to define the purpose of the company and establish its goals. You will make decisions to fix the status of your company as for that moment, whether you are going to open up a chain business around the country, or introduce an innovation of features that the current market or other businesses do not have. Also, by having a business plan, you can manage your company well, and you can see the progress you’re having towards your goals.

If you already have a plan, and you’re altering it for the expansion of your company, most of the times it would be adding charts, graphs, and tables to represent various figures presenting the facts of your company so far. Such facts would include revenue you made for the first year, profits and losses, percentage of revenue increase over the years or months, and many more. And not just stopping there, a detailed business plan also helps to attract investors as mentioned before. A very well planned business plan with good prospects may interest the investors and lenders more in your particular business.

Writing business plans is very simple. You can refer to samples and instantly come up with one. You can just go to bookstores, or visit employment agencies, or simply business-planning related websites to get those samples. The best part is that those online can be downloaded and edited to become a whole new business plan of your own. The format of writing one is also very simple.

You can write a business plan as long as you want, and as much as your investors and lenders would need to be convinced enough to come into your company, and of course understand the purpose of your business at the first place. The first part is always the introduction, then the name of the owner or owners, and all the relevant personal and business contact information.

The second part is about mission statement and goals usually, while the third part usually talks about statistics of the business; past, present, and future. If it’s a new business, then the statistic comes from sale of another company, provided that it’s legal to publish it. Try the best to promote your business to show that it’s very profitable. If your products and services do not have reviews yet, usually what you can do is to put in results of test marketing that your company has done instead. After proving that your business is very profitable and it has all the good prospects, next is to include the profit and loss information. Besides this, you also need to include the goals of your company and business.

You do not have to necessarily follow the sequence of the listed orders of writing a business plan, but this is the standard and common method of writing one practiced by experts. If you can’t write one yourself, it just takes a matter of something hiring someone professional to come up with a good and convincing one. They can be either consultants or market research experts, or you can also go for professional business plan software. It does matter whether you want to become a fortune 500 company or just want to earn 500 dollars a month; a business plan is for all!