A business plan is a detailed outline of an entrepreneurial venture, including its goals, structure, operation and necessary resources.
A business plan is useful when creating a company, but also at any critical stage of business development, such as introducing a new product, expanding abroad or acquiring another company.
It’s important, in your business plan, for all the necessary conditions to be in place for success. This requires a detailed market study and a specific plan of the company’s operations.
Have a business opportunity in sight?
Once you’ve spotted a business opportunity, the next step is to identify the resources and means to capitalize on it.
First, managers present their ideas and orientations in a clear, precise and understandable way, along with the means to achieve them, in the form of a strategic plan.
This plan, which also presents the company’s goals and actual and forecasted results in the form of a summary, is an internal planning tool that allows managers to evaluate the opportunities and risks associated with the new plans they wish to implement at their company.
The business plan must also convince potential financial and business partners of the project’s feasibility. The business plan is in large part the basis for funders’ decision of whether or not to finance a start-up or growth project. This is why it’s essential to describe your project in as much detail as possible in order to maximize your odds of securing the funds to meet your financial needs.
In short, the business plan reflects your company’s current situation and its potential future. It helps you not only define your prospects and goals, but allocate the organizational and financial resources required to make them a reality.