What is a Business plan? *******OHP 1
A business plan is a plan that helps a business to:
o Plan ahead
o Allocate its available resources
o Prepare for problems which might be encountered
o Prepare for any likely opportunities
o identify where the company stands at the moment
o identify where its going ? its direction
It is usually considered as a basic tool to be able to obtain loans or to attract potential investors. But not only. Even if loans or investors are not required, still it is an important tool that aids management in their planning and direction. It helps you understand where you stand, where you are going and how will you get there! It should be consulted and updated continuously. It is usually a written (it can be mental but won't be as effective) document aided with charts or diagrams.
A business plan should be: *********OHP 2
- simple and easy to understand
- clear and precise
- practical and attainable (not too optimistic)
- flexible ? the environment is changing all the time. We should be able to adjust.
- complete ? covering all the most important factors just mentioned
- workable ? give a clear picture as to the assigning of responsibilities. Who will be doing what?
(very similar to the SMART requirements in objectives ? do you remember them? If not revise!)
It should contain a description of: *******OHP 3
o An executive summary
? a company briefing
? what is our exact line of business
? mission statement
? objectives and expectations
? what is the direction of the business?
? where is it heading?
? where are we now?
o a description of the product/service
? what are you selling?
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