Angela Itambo Company

Irrespective of what you might need money for whether to start your dream business or simply use it to keep the business running or for purchase of assets for the business. You need to draw a business plan. A business plan simply is a document that shows what the money requested for will be put into use as well as all necessary inputs that will ensure the business achieves the objectives for its setup whatever the phase it may be presently. Even if you are not contemplating seeking for financial assistance from your bank or external investors you still need to draw up a business plan.

What will a business plan do for you?

A business plan is a well thought out document which involves a lot of evaluation on the part of the owner as regards the vision for the intended business, analysis of the environment as a whole, is it ripe for such a business? It involves a lot of digging deep to uncover all that needs to be known about the business in question. This exercise will help you make a decision whether to go ahead with the business or not. If to go ahead what are the likely challenges that lays ahead and various ways to address them and most suitable. With your business plan it helps you choose the best financing option that for your type of business and which will not suitable. It also shows to potential investors how their funds will be disbursed and the possible returns on their investment. The all important reason to have a business plan is that it shows you what is needed to make your business work and this includes the funding needs required and the right type of funding needed.

Who should assist you in drawing up a business plan?

This will depend on who is reading the business plan, if the business plan is solely for your personal use on how to disburse your capital. This will not require all the financial analysis that is most required by outside investors. However whatever the purpose for drawing up the business plan may be, you can acquire the basic knowledge on what it entails to draw a business plan from reading relevant books on business plan writing or help of a business plan software or CD rum used by computers. This can be easy for those who are conversant with computers and have some business knowledge. Some reading this column may agree that having a business plan is absolutely important however don’t have the time to draw one themselves may need the service of a business plan consultant who will work with them to draw up a business plan. For those who intend funding from organized fund providers such as banks or venture capitalist it necessary you include the financial analysis to show them the rate of return, anticipated risks e.t.c You need the assistance of a professional.

Whatever the reason for drawing up a business plan may be below contains what should be in one

• Your vision for the business

• Your mission for the business

• Your Goals and targets short term as well as long term

• Strategy and Implementation, how you intend to enter the market, the edge you will have over other competitors in the market place and how you intend to remain.
• Products and Services, with regards to the above you will now put on paper what shape your products or service will take to align with your business strategy.
• Process, how and what will be used to create it.
• Marketing, to make money you need to get the product or service out to the customers. To achieve this you need to plan visa vie your understanding of the industry you are in, the competition that exists, the role of promotion, pricing and distribution all that has to be taken care of, while planning.
• Management and Organization, for every business to succeed there has to be a captain with the crew that will steer the ship, irrespective of the size of the business. In lay term that is going to run the business, however it will depend on the business in question and what type of skills is required to successfully run it. This is inclusive of the staff that will be involved even if it includes relatives, also you must plan for the future depending on the motive for creating the business, if you intend it to outlive you or your intention is to start and later hand over to someone else all that must be taken into consideration while planning.
• Finance, to actualize all this you need money; however the mistake made by many is to think finance without thoroughly ascertaining what it will entail to bring a business to life or achieve their vision for the business. With regards to finance you need, to draw up the following:-

• Projected cost of the businesses, what you need the money for, for a new business it will include money for capital expenditure such as the purchase of assets either as a start up or existing business , also money for working capital

• You must draw a profit and loss account show how much profit you will make

• The break even point, how much sales you will need to make to recoup your investment

• Cash flow, the movement of cash into and outside the business.

• Business rations to test for the following, profitability, level of risk e.tc

• Finally you should state the plans for the unforeseen and the future.