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[S330]Set Up A Business Plan

by Paul Taylor, Pau

First, I want to start off by answering the question in the title with a resounding YES! That is, if you are going into business, you need a business plan. However, if you were just going to start selling items at a flea market on one weekend a month, perhaps one would not be necessary. But if you are going to open a business that will be your livelihood that is expected to return a profit to you, you need a plan of how your venture will operate.

The person that is starting a new business venture is probably the one that will use a business plan the most. However, existing companies that want to expand their operations and need an influx of cash use business plans. Before beginning any major initiative most experts agree that writing a new plan or editing an existing one is necessary.

A well thought out plan may be the difference between receiving a loan from a bank and not receiving the loan. Loan officers need to see a business plan in order to make a decision whether or not they are willing to loan on the proposal.

Writing a business plan is not a one-time event. It should be reviewed on a regular basis. Most experts agree that if there is a major change in the company, the business plan should reflect those changes. Perhaps, the company has grown faster than originally projected. Or, perhaps management has changed and has new ideas about the goals of the company. There are many reasons to update your business plan. A good business plan will reflect the reality of the business organization. And business organization objectives change constantly.

Most business plans include similar types of information. Cash flow projections, raising capital, and marketing efforts are among some of the most common. However, all business plans are not the same because all businesses are not the same.

Your plan should reflect you and your business organization in the best light possible. It should tell the story about what you intend for the company from start to finish. A business plan should be written for its audience. Therefore, there may need to be several versions of the same plan, although they all should convey the same message. A plan that is to be sent to a potential partner could contain references and abbreviations that he would understand. However, a plan sent to a banker may need to be more polished, because he might not understand the jargon that you would use in a more informal setting.

A business plan should be long enough to convey everything that is necessary to get your message across to its readers. However, it does not need to be too long and contain too many facts that would confuse the person it was designed for. The more relevant information that is included in the report, the better. However, keep in mind what the goal of the plan is. If you are seeking funding from your banker, you want him to have all the facts and figures that are necessary to make a decision. You do not want him to keep calling you for information that should have been included in your business plan. It could make him believe that you are sloppy and forgetful. You want him to believe that you know what you are doing.

Remember to tell the reader about you, what your objectives are, how you plan to reach them and in what time period you expect to reach them. That is all that a business plan is. As the name implies, it is just a plan and plans change. But how can you get anywhere if you do not have a plan to get there?

You have probably heard the old saying, “If you fail to plan, you plan to fail.” That is very true when it comes to your business. The more planning you do in the beginning, the greater success you will see in the future.

If you decide to take your home business to the next level, a business plan can help you secure financing. A financial institution will want to see, in writing, the reasons that they should loan you money. Simply walking in and telling them why you know you'll be a success isn't good enough. However, if you can hand your lender a document that states your business idea, your business goals, a list of steps you plan to take in order to reach your goals, as well as your estimated earnings, you will be seen as a professional and the lender will take you more seriously.

Your business plan will also help you determine your action plan. Your action plan consists of the steps you plan on taking in order to achieve your goals. This is another task that people usually sidestep. Instead of “just kind of knowing” or “having the ideas in your head”, you should take the time to put them on paper. The reason this part of the business plan is so important is that it literally walks you from point A to point B. While your business plan, in general, serves as a map, your action plan is the “step-by-step directions.”

Having a business plan to present to your spouse can also help your spouse realize your business idea is more than just a passing amusement or hobby. This can really help you, especially if your spouse is skeptical. Your spouse can see that you are serious and will become more helpful and more encouraging. Having the support of your spouse can really motivate you and help you find success.

A business plan maps out your future. If you have decided you are ready to start a business, your first step should be to write out your plans for what you want to do with the business and where you see the business going in the future.

If you and your family were going to drive to your vacation destination, you wouldn't just get in the car and start driving without knowing where you were going. Would you? You shouldn't start a business without a map either. If you are planning to have a simple home business, built around the Internet, you may not think you need a business plan. You may think only high level businesses need them in order to secure corporate funding but that's not true.

Every business needs a business plan.

When you sit down to write a business plan, you are literally mapping out the path you want to take in your business. Not only will your business plan help you define what you want to accomplish, it can help you streamline your business and create focus.

You may be under the impression that business plans are huge documents that can be difficult to write. On the contrary, you do not have to create a huge document at all. Your business plan can consist of a single page outlining your basic goals. The point is to put your thoughts and ideas down in writing.

When you take the time to think about your business, where you want your business to go, and estimate your costs as well as your profits, you are much more likely to succeed. Rather than working sporadically and blindly, you will be able to look at your business plan and know exactly what you need to be working on. This can serve as a great motivator and help you reach your business goals.

A common myth is that a business plan is rigid. That once you write it, you have to stick to it. As your business grows, you can change your business plan to suit your needs. You may find certain aspects of your business growing at a faster pace than others and decide to focus more on those areas. For instance, you may have started out in your business strictly as a custom scrapbook artist creating completed albums. However, you found yourself creating more and more themed mini albums and may decide to add that stream of income to your portfolio.

Having your business plan by your side can help you evaluate your decisions and decide what is going to add value to your business and what will take away from your business. Before you start a new project, take out your business plan and see if this new project will fit in with the plans you have already made. This can save you a lot of time, energy, and money.

Article Source : How Does The Stimulus Plan Effect Me

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Both Paul Taylor & Dawn Stegall are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Paul Taylor has sinced written about articles on various topics from A Secured Loan, Hair Care and Silver Jewelry. Paul Taylor is a business owner that helps other business owners and entrepreneurs locate wholesale distributors and dropshippers. Visit his website