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Some
important aspects of writing a business plan proposal are,
Most businesses fail because:
1. the business plan is not properly researched and implemented,
3. proper advice is unsought - not for reasons of cost or limited
time, but because the company doesn't see a need until too late
The
business plan has to be sound because:
• you'll not manage effectively without targets and strategies
clearly set out.
• funding agencies won't invest without having detailed plans
to examine.
• a good plan ensures that the vital questions are properly
addressed.
• the plan forms the basis of the records you'll have to
submit to the tax authorities.
A good business plan is one that works, and therefore has to be
specific, simple, realistic and complete.
How complete? To raise venture capital, or secure a large private
placing, you'll need to cover all aspects at length, backed up
by documented research. If, on the other hand, yours is a part-time
business needing no additional finance, then the plan can be a
few pages. But one thing is essential. A business plan is a support
and guide in the years ahead - which means it absolutely has to
be clearly thought-out and honest. Skimp or kid yourself, and
grief will surely follow.
A business plan will be tested against and extended to meet new
circumstances and opportunities, but initially at least will cover
four areas:
• Nature of Business
• Marketing
• Financial Control
•
Management
Taking these in turn, you'll be providing answers to:
• Nature of the Business
• what are you selling?
• what's the company name and domain name?
• how is it going to make money, precisely?
• start-up date?
• projected turnover and profit? By when?
• overall goals and objectives?
•
Marketing
• how are your products or services better/cheaper/more attractive?
• how will you advertise, on and offline?
• what's your pricing policy?
• what's the competition, and how will you cope?
• what are the prospects in your market sector?
•
Financial Control
• who's supplying the startup or seed capital?
• how long before the business is profitable?
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