Various studies have shown that companies that do business plan will beat a company that does not do it. Perhaps we know that some of many small firms are less rigorous in their approach in preparing and developing a business plan. In fact, many entrepreneurs who have never taken the time to prepare and develop a business plan for his business. In the end, affect the high failure rate experienced by small companies due to weak business planning and lack of slayings.
The business plan is like a map in building a successful business, business plan will guide you towards the vision and mission. Any entrepreneur who has opened a business or to launch a business, requires a business plan is well made and based on the facts to improve the chances of business success.
Business plan, is proof that an entrepreneur has done research necessary, adequate study business opportunities, and ready to run his business with a profitable business model. There are actually two main reasons are very important and fundamental why every entrepreneur should develop a business plan for his business. First, as a guide to business operations, the second, attracting lenders and investors.
Entrepreneur business plan provides guidance in running the company’s operations, because the writing is planned for goal setting and achievement strategies, it will facilitate the entrepreneurs to do the evaluation, development and reduce the risk of operational errors are fatal to his company.
Besides preparing a business plan forces entrepreneurs reveal their ideas a reality test, the question “Can business really make a profit?”.
Every effort would require an amount of capital in accordance with the business to be run. Venture capital can be sourced from its own capital, loans or equity capital from investors.
Applying for loans and attract investors without adequate business plan, often fail. In other words, the best way to secure the capital needs of the business is to make a compelling business plan and adequate to enable entrepreneurs present potential opportunities for business to be or have been carried out to lenders and investors.
In essence, an adequate business plan is required by every entrepreneur, both as a map of the means of doing business or seeking capital in building a successful business as expected.
business plan
Key Elements of Strategic Business Planning apt / quality:
Entrepreneurs who invest their time and effort to develop a business plan, will be better prepared to face the risks of doing business competition. In the previous issue we discussed the business plan as a roadmap and a means of acquiring capital entrepreneurs in building a successful business.
Although the business plan does not guarantee 100% success, but this plan would increase the chances of business success for entrepreneurs. There are many approaches in the preparation of business plans. However, a quality business plan to include at least eight basic elements, namely:
Executive Summary
This element is a brief summary, the entire contents of a business plan, either in relation to business objectives, business strategy, general description of business, marketing plans, production plans, financial planning, human resource planning, and business risks in the future.
General description of business
This element describes the vision and mission, along with a business carried on goods and services produced, objectives, strategies and achievements. Picture of the company’s current position, and future, target market, competitive advantage, business location, core management, establishment, management concept that is run and so forth
Human resource plan
This element describes the personnel required in terms of both quantity and the knowledge, skills and abilities needed in running the company.
Key risks facing the
This element describes the risk faced by business in the future with anticipation of the company to address these risks.
Analysis of competition
This element describes the strength of the company against business competitors, strengths, and weaknesses of competitors.
Production plan
writing business plan
This element describes the production process, how the company is maintaining the quality of the product, how the company obtained the supply of raw materials, goods and services, consideration of the plant site selection, production, etc.Budget is very important especially for a company engaged in manufacturing.
Marketing plan
This element describes the chosen market share and marketing mix and promotion company created to meet the needs and desires of consumers, sales budgets, pricing strategy, distribution strategy is implemented and so forth.
Financial plan
This element describes the financial projections that show the profit expectations, financial projections, cash flow projections, break-even point, capital requirements, and projected return on investment.
Business plan that is too short, often unable to provide an adequate picture of the business. Similarly, a too long, has probably not used or not readable. In the preparation of business plans, entrepreneurs must consider the principal elements of the business plan as mentioned above as a starting point to structure and should be modified as needed based on existing conditions. So the business plan can actually be used as a roadmap to business success is built.
that need attention and are very important in that the mistakes that often occurred in the Development of Business Plan
Here are the mistakes that often occur in the preparation of business plans relating to the submission of a loan and attract investors, namely:
Hide the weaknesses of the business
sample business plans
Some thoughts are believed by the author of a failed business plan, because they often hide the weakness of its business. For example, “Why do we write something that would give a negative impression” or “after we get the funding, we can deal with weaknesses.”
If the author is a business plan to hide the weakness of his business failed and he is potentially fatal in its efforts. Meanwhile, savvy investors will find the answer may be in the first 10 minutes, then arises the question on the minds of investors, “What else have not you tell me?”
When you have lost the element of trust, then it has gone the chance to get funding. The best way to handle the business is to explain the weakness of the existing weaknesses and effective plan to address weaknesses in question.
Too much information
Is a business plan which consists of 25-50 pages is better than 200 pages? The answer is “YES”. Most of the lenders and investors will focus on some specific points in business opportunities on offer, so that the business plan that allows not read too thick and dull.
Keep in mind, that your purpose is not to create a business plan showing the reader the breadth and depth of your knowledge, but to show the key elements of a business plan that gives hope of a bright future for the business in question.
If there is information that can not be separated from the business plan, should be pasted on the back as an attachment to the supporting information the reader.
Weak competition analysis
List the name and address of any business competitor that is not enough. Investors are very interested in knowing what you know about a business competitor. For example, business strategy, core competencies, distribution systems, advantages, and disadvantages they have. Knowing little about your competitors, is proof that you do not prepare properly the business, including doing business competition.
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The financial projections are not qualified
Financial projections are not supported by adequate analysis and forecasts will provide the investor distrust.
The business plan must prove to creditors and investors that the company is able to pay back the loan and generate attractive returns.
Distribution channel is not clear
The business plan should explain how their products and services effectively to the intended market. The unclear distribution system, resulting in inhibition of the products and services to customers. Could ultimately threaten the survival of business.Di following example statement informing investors that the product does not have a clear distribution system would threaten the survival of the business.