1c The Business Plan

1c The Business Plan - The Business Plan Why are you...

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The Business Plan Why are you preparing a business plan? Normally there are two purposes which a business plan might serve: To assess f easibility and/or aid control : Are you checking to see whether your idea might work or how it might be made to work? A business plan can serve as your implementation plan, to help you prepare for and implement the process of creating a viable business. If you are considering feasibility and methods then there are two conflicting pieces of advice: The military maxim that time spent on reconnaissance is seldom wasted. The rock climbers’ approach that studying a hard climb for too long before you climb may put you off. There comes a time when you must either start or go away. To c ommunicate : Are you trying to communicate your idea to others? A plan can serve as a sales document, for instance to help to persuade a bank or other funder to support your venture. If so then you should try to ensure that it addresses any queries they might have and indicates how they should benefit from supporting your venture. Don’t tell them that the plan has been written as a sales brochure just to persuade them, but make it persuasive nevertheless. For either use a business plan is, if effect, the answers to a series of questions. Here are some of the usual ones: The Executive Summary: What does the plan say? This is the bit that people will read first to get an introduction to your venture. Some people may them read the rest of the plan and some may look at parts of the plan to get more detail on specific issues. Many however will not get past the executive summary, so make sure that it provides a good clear summary of the key points. Write the summary last, so that it does reflect what is in the plan. Make sure that it highlights your aim and objectives and the key issues in realising them. Tip : If the plan is to communicate your vision, think about the gliding. Why should someone think that you will be able to launch and then to fly your glider? Demonstrate that you should be able both to get your venture started and then to keep it going once it is launched. If you can’t keep it going then it won’t survive to deliver the benefits offered. Introduction to the Business : What is the business about? Who is involved ? Give relevant information and stress anything which demonstrates your competence to run the business, in other words, establish your credentials. If other key persons are involved, give their details also. What were the origins of the idea ? Describe how your business idea came about e.g. from a hobby, previous work experience, replicated from elsewhere etc. What is the basic proposal ? Describe clearly but briefly what the business is i.e. the product or service; manufacture, wholesale or retail; customer groups.
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This note was uploaded on 10/13/2009 for the course MGT 3150 taught by Professor Ken during the Spring '09 term at Al Akhawayn University.

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1c The Business Plan - The Business Plan Why are you...

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