Businesses generally have a Business Plan prepared for one of the following reasons:-
- You will need a business plan if you are applying for a builders licence or need a loan from a financial institution
- A business owner may contemplate selling, then a business plan will inform a prospective purchaser of all aspects of its day to day running, including financials, all in one comprehensive document.
- Should a business owner feel that the business is not performing as well as it should be, the Plan will give the owner a focus, and will turn it around should the plan be followed.
- A tradesperson contemplating taking the next step, and starting up on their own should prepare a business plan which will give the new entity both focus and direction.
A business plan will also contain (but will not be limited to) the following:-
- Owners’ business profile and background
- Overview of the business
- Marketing Plan
- Operational Plan
- Financial Plan
A business plan
- will have you lender ready
- will show the feasibility and profitability of a business on paper prior to committing to an investment
- will demonstrate how all issues involved in running the business are to be addressed
- will establish clear guidelines for the operation of the business
- will explain the clear direction of the business, and how to maintain its focus
Who will read a Business Plan?
- Prospective purchasers of your business
- Tradespeople taking the next step
- Bank managers and financiers
- Prospective partners
- Prospective investors
- Prospective landlords
- Real estate agents