Data from the Panal Study of Entrepreneurial Dynamics found that writing a business plan greatly increased the chances that a person would actually start his or her business. In fact, the study concluded that a person that wrote a business plan is two and a half times more likely to get into business.
Developing a well thought out business plan is an essential management tool. Learning how to write a business plan is important because it can identify potential challenges and provide strategies for success. It is critical for planning or operating a for-profit or non-profit business, as well as seeking investors, loans, and partnerships, or even acquiring real estate. Business plans can fulfill a variety of roles:
- The process of putting a business plan together forces the person preparing the plan to look at the business in an objective and critical manner.
- It helps the entrepreneur who is starting a business to consider all options.
- It helps to focus ideas and serves as a feasibility study of the business’s chances for success and growth.
- It may show the business is not viable and help realize the idea is flawed.
- It is a strategic planning tool that can be shared with the investors, bankers or other funders, partners, and business development professionals.
- It is a strong communication tool for your business. It defines your purpose, your competition, your management, and personnel. The process of constructing a business plan can be a strong reality check.
A good place to begin when writing a business plan is by doing some research on your ideal industry and where you would like to start your business. Finding good research for your business plan is important, so be sure to seek out reputable sources like the Small Business Administration when you are learning about the trends in the business you wish to start.
The process of learning how to write a business plan can sometimes be cumbersome if a business owner has never attempted to create one before. Most effective business plans use similar elements that help a business owner to think about their business from all angles. Essential components include:
- Executive Summary
- Company Summary
- Products or Services
- Market Analysis
- Strategy and Implementation Summary
- Management Summary
- Financial Plan- including Pro Forma Profit and Loss, Cash Flow, and Balance Sheets
Realizing that many small business owners are frustrated and overwhelmed by the process, business consultants have created business plan services that are aimed at making the creation of business plans as simple and effortless as possible. Business development experts consult with entrepreneurs throughout the planning process, offering a variety of tools and resources to ensure the plan will be successful in achieving its goal.
A quality finished product incorporates all necessary elements, including financial forecasts, marketing strategies, color charts and graphs, and is created in the Small Business Administration’s preferred format. Whether you are seeking a business plan to attract investors, get a loan, or simply determine whether your idea is viable, an adequate planning process will focus your thinking and provide an objective and critical view of your business.
BizCentral USA’s mission is to provide products, services, and solutions for small to midsize companies, helping them start and grow their business. As the nation’s leading business resource center, BizCentral provides a “one stop shop” for business products, services, and solutions. Their specialty is helping small businesses or startups with all administrative services, including marketing, accounting, web development, translation, and more. Their experts will be with you throughout the journey to ensure that your dream becomes a reality.