What Is The Importance Of A Business Plan?

The Business Plan is the document that allows the entrepreneur to plan the future of your company. It is a key to better understand the company that wants to do, identify potential partners for entrepreneurship and funding required achieving this tool.

But beware, this task is the least liked the entrepreneur. At the beginning seems boring and intrusive sit down to write a document, because there is usually more desire to be built on the progress that business you sit down and think about how to envision the future of the company. But surely be cheaper to put ideas on paper to lose money trying. In short it is a written document that helps draw the route to be followed in the future.

What Is The Importance Of A Business Plan?

While each business plan is a particular world, is universally accepted that the points that should not be missed in the document are:

  • Executive Summary.
  • Detailed description of product / service.
  • Marketing Plan, detailed on the price, distribution, promotion and positioning.
  • Business plan, how it will be manufactured product, where, with what inputs, which operating process.
  • Organizational structure of the company, who occupies what position, what their tasks are, what their skills, their responsibilities, depends on who and who depend on it.
  • Economic and financial plan in terms of initial investment scenario in the next three years, cash flows, working capital requirements.
  • Legal form to be given to the company: SA, SRL, etc.

All business plans are different in content, amount of information, etc, but if we are talking about a written document, we first need to define in this kind of written communication is the target audience, ie to whom it is addressed. Not the same focus in the market, potential shareholders in the venture.

While the first one is interested in the product the second look the economic return. Depending on the content that we have quoted above will be one or the other:

For own use: The Business Plan serves to detect obstacles and find ways to solve them. Also to confirm the first hypothesis and discover new, detect the Key Success Factors of our project, ie respond to the valuable question: what should be and do my business well to succeed ?. Such factors are thought-provoking.

For external use: Depending on whom it is addressed to have so many Business Plans and audiences. It works in the same direction as the Curriculum Vitae, where one highlights what he believes is of interest to the reader. When you seek shareholders is because you need money and then the document must be focused on the financial side, so that investments and returns at least three possible scenarios look crisp: the most likely, optimistic and one pessimistic. If instead you are looking for a team of collaborators would have to get them excited about the idea, with the possibility of personal development and participation in profits.

In short, the Business Plan is the document that allows the entrepreneur ground down your project, share what’s in the head with others and find dark spots to put the feed. But it requires planning, hard work for the entrepreneur.

Related Posts