A business plan is a document that contains the business goals, the methods to be applied to achieve them, and the specific period of time needed to obtain the main objectives. A business plan also indicates the nature of the business that an individual intends to open and the company's financial projections. This document is also expected to state any set of strategies that will be implemented to attain the targets. Without a business plan, an entrepreneur may not exploit all the available opportunities that might represent themselves or avoid any obstacles present in the business world.
Writing a business plan requires vast knowledge in various business sections, including finance, marketing, operations, human resource, among others, and a student may fail to comprehend the best approach that will develop the best business plan. To avoid getting stuck in the middle of your business plan homework, we have experts online 24/7 to give your homework a professional touch. The experts will make sure that all the components that make a good business plan are well incorporated in your assignment attracting excellent grades from your professor. Order now
What makes a good business plan?
The implementation and execution of your business the plan also follows certain key elements which include: the specific objectives assigned to each predefined task, the metrics required to assess and evaluate your work, accountability (because certain tasks need to be shared), and the resources you may require to carry out your work effectively. Also, each task should be done within a certain time frame. Your game plan is equally important as it provides a clear framework of all the potential obstacles you may face, and how to navigate them. Another important element is accounting for any possible roadblocks, and how to deal with them when they occur as you create the business plan.
This is one of the most important tenets of a good business plan, as it is the linchpin of financial planning for your project or business. Liquidity is the ability of a business to meet all its monetary obligations, such as paying suppliers. As you create a business plan, you should also consider drawing up a plan of all the Inflow and outflow of cash, as well as financial accountability measures like receipts, for instance. If the sum of deposits is more than the sum of expenses, the business is liquid, while vice versa, capital would be required.
There are two levels of liquidity; first-degree liquidity and second-degree liquidity. The former entails all the cash available at the cash register and the organization, and it also provides a guideline that 25% of the business’s short-term debt should be paid for by cash. The latter entails monetary current assets, including the outstanding amounts to be paid (the payments to be expected for delivery and services already provided.
Its also important to create a budget and financial structure in your business plan, for at least three years. Understand all the capital requirements and financing for your business; making a distinction between equity and debt capital. For instance, the total capital requirement for your business plan should be at least 15-20% from your own resources. You may also consider hiring financial experts and management consultants to help you plan and navigate finances and capital planning in your business plan.
Realistic. Your business plan should be realistic in terms of costs, timeline of implementation, payments, etc. Besides, you should have milestones that are markable, projections that are clear and credible, strategies that are executable, executable tactics and matching strategies
Specificity. Your business plan should be specific by including meaningful and direct information. This is important as it serves as a guide to execution by following the right steps and key specifics. You should think about what your business would look like in several years, for instance, and create as much precise information about it as possible. Besides, you are much more likely to act if you set a strict timeline of your work activities.
Flexibility. A business plan is essentially a ‘living document’ which should evolve along with your business. You should make it easily adjustable to any changes or corrections whenever needed. If your current business model is not working, you should be able to test another business model, or adjust your current business plan accordingly.
Trackable work. Your business plan should have trackable goals, which have good metrics, milestones, and a clear plan of execution. Having an actual analysis also leads to proper accountability and management.
Functional. Your business plan should also be functional by serving the business purpose for which its intended. For instance, if your business plan is geared for management, it should have a goal map of the potential investors of bankers who could be useful. Form should follow function depending on the business use. For instance, a business plan geared for the management may not include all the summaries and descriptions, but one intended for business investors has to.
Completion. A business plan is a roadmap for your business, and therefore you should do complete and accurate work. It should incorporate all the elements and structure outline needed to help your business.
A good business plan should have the following features:
It should be 25-30 pages at most.
It should present your business or start-up in a meaningful, logical, understandable, and comprehensible manner. It's important that any enthusiasm that you may have regarding the plan should lead you to emotional statements that may not withstand scrutiny.
The business plan should also be legible and look attractive. You may use a formal font, and format your work in an organized manner. However, this does not mean using colorful or glossy features.
Most importantly, it should be drafted in a language that is easily understandable, even if it created for complicated and technical products. This is because many investors simply do not understand technical details. In these cases, you may opt to simply use illustrations to ease the comprehensibility of your work.
A good business plan is a necessary document for your business. First, it could help you sell your business idea to potential partners, allies, investors and even financial institutions. This is particularly important if you are looking to acquire funding for your business model.
A business plan also helps you assess your current situation while enabling you to plan for the future, and the steps you can take to achieve your business goals. It acts as a good check by which you can assess yourself and what you need to improve.
It can also act as a guide for your business and employees, thereby facilitating coordinated action to achieve success for your business. Its also a tool for motivating employees to work and improve the overall performance of the business.
A business plan can also help you gain a greater understanding of your business market for improved performance. This is because one important key of the plan is knowing how to conduct a market analysis. Doing this will give you an upper hand in the market, and improve your performance.