The Importance Of Implementing a Business Plan
Business plans present a direct course of action forbusinesses to take. Without this plan, securing investment
capital is almost impossible from investors or banks. You
may very well have planned everything out in your head, but
it still needs to be put down on paper for others to see.
It is important that you adequately prepare for making
decisions, setting goals, and management training. This
means that you need some hard facts and not a lot of mere
numbers. Planning needs to be a balancing act between idea
and detail.
Writing a business plan requires you to acquire as much
information as possible on the materials you're selling; as
well as your target market. To do this, you need to invest
in magazine articles, journals, business literature, and
even information from the Small Business Association. Read
literature that is inspiring but factual, so that you know
'how to' drive the market into your place of business.
You'll need to know 'what steps' to take, and 'who' would be
interested in what you're selling.
Learn how to generate traffic flow by only reading material
that is fact-filled but still inspiring. You will want to
find out who your target audience is and what steps to take
to get them interested in your company.
Collecting the Information You Need
In order for your business plan to be accurate and within
reason, you will need to collect a wide range of materials.
The information provided in this article is a starting
point. I believe this basic material will give you a good
place to start without becoming overwhelmed.
You want your information to be accurate and relevant, so
you will have to pool data from diverse sources. This
article is a nice starting point, but you will need to
probe much deeper.
You can find out more information than simply how to write
up a business plan on the Internet. You can use the web to
gather information on competitors so make note of their
names, location, and of course how much they are charging.
You can use this information when drafting your own
business plan and it will make the plan much more
realistic.
Cost of Product/Service: Think about the type of products
and/or services you will be offering. Find competitors in
the area, and review their pricing. Will your cost be
higher or lower? What is unique about your product or
service? Who are your customers?
Cost of Doing Business: You need to know how much money it
is going to take for you to get started in order to
understand what your business needs are. After noting what
equipment your competition has, find a distributor that
can give you an estimate as to how much it will cost you
for the same equipment and supplies. Then, decide between
what is essential and what can be bought later on down the
road.
The Location of Your Business: Location! Everything in
business is about location. Where you're located will
affect your profitability. If there are two restaurants in
a strip mall and you're one of them, the likelihood of your
restaurant succeeding or stealing the market is extremely
low. However, a Family Style Diner verses a Chinese Chop
House will increase your odds.
The Help: Employee costs are a huge expense in any business
and your investors will want to know what you plan to do
to control them. If you keep this expense down in the first
3 to 5 years which is the most critical time for your
business, then you can spend more money building business
equity. Who are your star performers and how much are you
willing to pay them?
Organizing Your Notes
Your contribution to developing a business plan, time and
research, is valuable to those who assist you near the end.
Investors and banks want to know that "you know your stuff".
Coming into a business endeavor without any background in
the industry or research is a huge mistake. Immediately
investors and banks think you're not serious.
You always want to make your first impression count so that
you have the best odds of winning investors over to your
cause. You want them to believe in your dream so don't
ruin it by showing up with little more than a legal pad if
you hope on convincing them that you are a worthy risk.
All information should have its place within your business
plan. Prepare yourself by asking questions and then
supplying the answers. Edit your business plan for
grammatical and spelling errors.
Nyall Bakk is the chief writer for, and editor of
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