Preparing a Good Business Plan

It is an accepted fact that one should have some form of business plan before actually starting up a business, either in the form or a document or sketches of ones intent and plans. An excellent and appropriate question to ask oneself is - "What business am I in?" to start with. The answer to this question would include the types or categories of products and services you would like to provide, the target market you plan to service as well as a thorough description of what makes your planned business unique or different from other. That describes your business and it is essential that before you even think of starting the business, you should at least have this information and knowledge.

While coming up with any business plan it must be noted that business plans should have a minimum utility to:

• Provide a set direction on the goals and objectives.
• Provide a basis for evaluating and controlling the company’s performance.
• Communicate a company’s message to its relevant stakeholders, e.g., managers, directors, lenders, and potential investors.

The question that arises now is what are to be included in a business plan. And, it is one that many new, aspiring and potential small business owners should ask, but rarely do ask. One might question the very need for actually preparing a business plan thinking that they know what they are planning to do. However, the question is whether other people who are part of the business would also know the same. One cannot expect them to get inside your head and know your plans, nor can you tell everyone about it.

The basic structure one should consider while preparing a proper business plan, in short, should at least have four distinct sections -

1) The Description of the Business

The business description section is usually divided into three primary sections. The first section should describe your business, the next section should elaborate on the product or service you will be offering and last section should talk about the location of your business and its advantages.

2) The Marketing Plan

Well nobody can question the fact that marketing plays a vital role in successful business ventures. The key to a successful marketing plan is to know your customers - their likes, dislikes, expectations. By identifying these factors, you can develop a marketing strategy that will allow you to arouse and fulfill their needs. Don't forget your competitors, their activities and how you plan to deal with them.

3) The Financial Management Plan

One has plan and manage finances well to ensure that the business is profitable. A good and sound financial management is the key to any successful business venture. The business plan should identify your sources of finances. You need to plan a sound, realistic budget by determining the actual amount of money needed to start up your business and don't forget the amount needed to keep it running, which we call the operating costs.

4) The Management Plan

Managing a business requires more than just the desire to be a boss or an owner. Your management plan, along with your marketing and financial management plans, sets the foundation for and facilitates the success of your business. Remember that people are the most valuable asset a business has - they play an important role in the total operation of your business. Ensure that you should know and also plan how to manage and treat your employees. Other additional information, supporting documents and financial projections are always helpful to be included in a business plan.

Finally, while preparing a good business plan it is important to ensure that all the components of your business are highlighted and they complement and support each other. Only then you can be sure to create an organization to meet your goals and objectives. It is important to remember that a business plan is not supposed to be just a document or a showpiece, but rather a valuable management tool that you actually utilize and follow.