Monday, April 13, 2009

Just why you need a business plan

Drafting a business plan before taking any step to start your own small business is very important step in actualization of your business dream.
A business plan is like its your own resume.Any time you will be going out to source funds for your business--it will help you to identify yourself to lenders and others who may be willing to work with you.
It will help you to for see what you are doing and even when problems occurs,its easier to solve them when you have your business plan with you
In many times,a business plan is used to illustrate the vision and passion you have for your own business and hence helps you to persuade others help you to support your business
It helps to understand that actually you have a concept which when acted upon can yield required results

There are two types of business plans
1.Concept Presentation Plan
Typically they hold between 10 to 24 pages.They describe your vision basically in terms of concept,products,your principles,targeted market and the trends in the industry you want to venture in.This kind of business plan does not project the foreseen profit margins
2. Full Financial Business Plan.
Usually used by entrepreneurs who start their own business by borrowing capital from lenders.Can consist between 25-100 pages.Usually contains all the elements of a concept presentation plan but will include your total cost of your intended business and the return of investment from your business in terms of profit

So next time when you want to start to start your own business,consider preparing your own business plan