The business plan
The business plan is effectively a document that states what the aims and goals of the business are and how it will achieve those. Business plans are developed for several reasons, most lending organisations require a business plan to be in place before any finance is offered. The contents of a business plan will vary but can typically include some of the following;
- Cover page and table of contents
- Executive summary
- Business description
- Business environment analysis
- Industry background
- Competitive analysis
- Market analysis
- Marketing plan
- Operations plan
- Management summary
- Financial plan
- Milestones and achievements
- Exit strategies
Its also worth remembering that anyone who has access to your business plan has the opportunity to take ideas and resources from it, this can include competitors, so it makes sense to keep you plan secret.
As the business plan is essentially the blueprint for the business it is vital that it is frequently consulted to ensure that the business is on the right track. Of course you can change the business plan as your business changes, but you may have to declare any fundamental changes to lenders.
