http://www.va-interactive.com/inbusiness/editorial/bizdev/ibt/business_plan.html and an excerpt that illustrates my point. primarily, it’s not the end product but the process that they must go through to get there that will set the company on the write track to be successful. one of the questions investors will ask is if he wrote the business plan, if the answer is no, then their view will be that he both unwilling to put the effort in the core areas necessary to make the company successful and doesn’t know enough about the business to effectively manage it if they were to invest money.
I. Why Write a Business Plan?
Why should a business go through the trouble of constructing a business plan? There are five major reasons:
- The process of putting a business plan together forces the person preparing the plan to look at the business in an objective and critical manner.
- It helps to focus ideas and serves as a feasibility study of the business’s chances for success and growth.
- The finished report serves as an operational tool to define the company’s present status and future possibilities.
- It can help you manage the business and prepare you for success.
- It is a strong communication tool for your business. It defines your purpose, your competition, your management and personnel. The process of constructing a business plan can be a strong reality check.
- The finished business plan provides the basis for your financing proposal.
Planning is very important if a business is to survive. By taking an objective look at your business you can identify areas of weakness and strength. You will realize needs that may have been overlooked, spot problems and nip them before they escalate, and establish plans to meet your business goals.
The business plan is only useful if you use it. Ninety percent of new businesses fail in the first two years. Failure is often attributed to a lack of planning. To enhance your success, use your plan! A comprehensive, well constructed business plan can prevent a business from a downward spiral.
Finally, your business plan provides the information needed to communicate with others. This is especially true if you are seeking financing. A thorough business plan will have the information to serve as a financial proposal and should be accepted by most lenders.
II. Who Should Write the Business Plan?
You, the owner of the business, should write the plan. It doesn’t matter if you are using the business plan to seek financial resources or to evaluate future growth, define a mission, or provide guidance for running your business — you are the one that knows the most about the business.
There are a number of software packages in addition to this article that can assist you in the formatting process: Business Plan Pro, Palo Alto Software, $89.99 and Small Business Advantage, Encore Software, $39.99 are only two of many available.
here are some additional resources for him as he creates his business plan: