All businesses, of whatsoever size or stage in its development, need to have precise business plans in place, arranged by the management and not their accountants, and fortunately, there are many now many free business plan templates available on the web to assist you in business planning.
Why Prepare A Business Plan?
There are certain main reasons why you should develop a business plan. These are not mutually exclusive, and as the business changes and grows the business plan should be constantly revisited and reviewed since these issues will refer equally well to an established business as to a start up.
The first is to plan in the widest sense. In developing a business plan you are preparing first and foremost a plan and the process is one of thinking through what you are going to do in the business, how you are going to do it, what are the separate projects that will have to be developed to reach the end goal and when by, what resources you will need to have in place and when, what the risks are and how these are to be managed, and so on. You can improve your business performance with Business Propel and learn to formulate more detailed business plans.
The second is that from setting out your plan of action you can then assess and recognise the likely financial performance and requirements of the business. You can examine the key sensitivities involved in your forecasts and take a glimpse on the financial risks, and potential rewards involved.You can also navigate here to know about the different business plans.
This is critical as the third reason for preparing a business plan, which is often seen by some managers, mistakenly in my view, as the real point of the exercise, is to provide it to investors or lenders in support of a request to raise funding.
The next reason is that that plan provides an objective benchmark and milestones against which the progress and success of the business can be checked.