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Articles for Entrepreneurs

 

Writing Business Plans

 

What Is a Business Plan?

What's the purpose of a business plan? Why do entrepreneurs need business plans? If you're curious to learn about business plans, this article is exactly what you need.

What is a business plan?
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A business plan is a blueprint of your company, presented in standard business format that is logical and well documented.

A business plan precisely defines your business, identifies your goals and serves as your firm's resume.

Its basic components include a current and pro forma balance sheet, an income statement and a cash flow analysis. It helps you allocate resources properly, handle unforeseen complications, and make the right decisions. Because it provides specific and organized information about your company and how you will repay borrowed money, a good business plan is a crucial part of any loan package. Additionally, it can tell your sales personnel, suppliers and others about your operations and goals.

In short, a good business plan is:

  • A strategic vision of your company
  • Your most important communication tool
  • A document to obtain working capital and/or investments
  • A tool for planning, measuring and improving performance
  • A basis for sound decision-making
  • A way to motivate employees

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