Business Plans

When starting a journey to an unknown destination, it is common practice to do at least one of several things. Generally you would look at a road map to determine the best route to your destination. If it is a longer journey, you may plan a number of rest breaks, take on extra fuel, stop for food and a drink and consider your return trip.

Entering into, or creating a new business, can also be viewed as commencing a journey to an unknown destination. In the same way, such a big journey requires a road map.

A business plan is that road map. There are six basic steps to remember when writing your business plan are:

1. Start basic: write out a basic business concept. What is it you are trying to achieve?

2. Get the information: do some research and gather all of the information you can. Look at such things as the feasibility of your concept, what are some of the specific things you need to do, need to know and need to achieve to make the business successful?

3. Be specific: outline the specifics of your business, ie: what, where, when, why and how;

4. Focus and refine: review your basic business concept and incorporate the information you have identified and obtained;

5. Make it believable: review your edited basic business concept and refine it. The purpose of a business plan is not only to provide an insight as to what you are aiming to achieve, but it also acts as a tool to assist you in attaining your goals and your targets;

6. Review others: although a business plan is your own working document, it is always a good idea to review other examples to get a feel for what they look like, or pick up some tips, or even identify some areas that you have not thought to include in your plan;

The business plan provides you with a road map as to how you are going to achieve your goals, it provides you with measureable targets, it informs you as to the resources you will need to use, it advices you as to whether you are performing at the required level, or not and it provides you with financial management guidelines.

A business plan is a living document and should be treated as one. It is an important business tool and should be kept within easy reach. If it is to guide you, it needs to be reviewed, updated and utilised in the future planning and growth of your business.

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