There are many successful enterprises today which have humble beginnings. A lot of these businesses started out as small ventures with definite goals and determined owners. For example, one of the most prominent names in the computer industry started in a garage with three friends aiming to compete with the biggest name in the industry of equipment at that time. Slowly but surely, they clawed their way up the industry and has positioned themselves to be one of the most trusted brands today. How were they able to organize their venture into something big and reputable? With careful planning, their business has come to fruition.
Business Plan Defined
What exactly is a plan of activities? A business plan is a formal statement of your enterprise’s goals, and it also aims to answer why those are your goals and how you can achieve your goals. To put it simply, a business plan is a formal document which states your organization’s objectives, your mission, and your vision. It is somehow like your business’s Bible; a guide for your venture to base decisions from.
A simple business plan normally supplements business presentations to target investors, and audiences and a well-written plan establish the trust of your audience to you, as the presenter. With that in hand, business plans are somehow factors for the target audience to make their decision such as when applying for loans from a bank.
Some banks require the borrowers to include their business plan with their loan application documents since these schemes can in one way or another, determine a borrower’s capability to pay. Since these are crucial to a venture’s success, a simple plan with a good mixture of elements can enhance its impact on your audience.
Elements of a Business Plan
Here are a few of the business plan elements which you must consider upon making one:
1. Cover and table of contents – these pages contain the title of your project (commonly incorporated with the business’s name) as well as the pages where sections can be found
2. Objectives – statement of your venture’s goals and why they are achievable.
3. Background – What is your motivation for your proposal?
4. SWOT Analysis – a good plan has a well-defined set of limitations. Business plans should contain the strengths, weaknesses, opportunities and threats that you can potentially face. A good business plan recognizes its capabilities and its shortcomings.
5. Methods – Have you gathered information about your market already? What are you planning to do with your business, given that you have already analyzed your market? Your competitors?
6. Results – What have you found out with your data gathering? Is your business feasible?
7. Recommendations – What have you done so far and what can you further do to improve your findings?
Making The Best Business Decisions
In conclusion, those are only some of the elements that it must contain. The way how you play with these items and how you’re present them to your target audience can help you garner impressions from your audience regarding your venture. It is important to note that the functions of your plan will mainly guide you with your business decisions, but sometimes, business plans can be modified to enhance your marketability further.