Written by James Huy Vuong, Founder of Your Accounting Partners: Writing Your Business Plan
It may be an overwhelming task to write your business plan, yet it has been proven that how well you’ve written it contributes to your business success.
The Reason
Starting your own business from ground up can be difficult and demanding thus writing a business plan urges you to think thoroughly on what plan and steps you should take.
A business plan helps you in formulating your business strategies and also encourages you to accomplish your goals.It serves as a guide for you to foresee challenges and work on its resolutions, to ease your stress and anxiety.
In addition, creating your own business plan will reveal the dedication and commitment that you will need to devote to your business.
Components of a Business Plan
The business plan should beconcise, professional, and understandable. Here are the necessary components of a business plan:
- Executive summary
- Business Description
- Products and Services Design and Development
- Industry analysis
- Market analysis
- Marketing plan
- Business structure & management team
- Operations plan
- Legal and risk management plan
- Financial projections
Creating a plan that covers every area of these components takes a lot of time and effort, however, when the plan is completed, you will have a lot of learning in the process.Ask yourself then: How deep is your understanding of your business? What is your confidence level when you launch the business?
After answering these questions, we can say that it is important that you, yourself will write your business plan than having a staff create it for you. Additionally, it is a thrilling feeling to have your business ideas into writing. There are available resources to guide you such as books, websites, and consultants.
Other advantages
When applying for a business loan, banks and other lenders usually require you to provide a business plan to consider your application. Without a well-writtenbusiness plan, you would most likely leave a poor impression on them.
A business plan also serves as a tool in evaluating the progress of your business against your laid out goals and performance standards.
Formulating your business plan may reveal that your idea is not viable. Although it is unfortunate, failing only in paper is better than actually launching your business then realise its impracticability later.
Next Step
Gather information and start writing your business plan. Search the internet, and consult with advisors or other business owners if you have any questions.
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