Why should you create a business plan? 1. It encourages you to think deeply about your business objectives and goals. When you create a business plan, you get to think about the short_term and long_term objectives. It also helps to develop a mission statement for your business. This helps you to remain focused as you do your business. 2. It encourages you to think about the possible problems and how to overcome them. In any business you may think about, there are always risks involved. Creating a business plan enables you to anticipate the risks that you may encounter in the process of running your business. It also makes you to think about the various ways of overcoming the problem in case it happens. That's a proven way of looking at things for you to remain in business. 3. You get a clear picture of the whole business project. The process of making a business plan makes it possible for you to focus on the nature of your business in details, to analyze your target market, to develop a marketing and operational plan and to make your financial projections. 4. You get new ideas.
What should be included in the business plan? Without being too prescriptive, there are certain necessary elements which need to be included. Such elements are: · Preliminaries _ such as contents, contacts and definitions; · An executive summary; · A description of the business; · A review of the market, the competition and market positioning; · The vision, mission and objectives; · The corporate strategy; · The plan for developing the products and services; · Financial projections; · An outline of the risks and opportunities; · A conclusion. Understand gaps and weaknesses within the plan.