For any business to be successful, it must be started and operated with a clear understanding of its customers, its internal strengths, its competitive environment, and a vision of how it will evolve to compete in the future. A business also needs money to start, to operate, and to grow. By expending the effort to develop a comprehensive business plan, you will have a powerfultool for attracting investors. Your business plan is the roadmap for your company. It clearlystates where you are, how you got there, and how you plan to proceed. 

 

Although businesses may vary with regard to the products or services they offer, there are specific elements a potential investor will look for in any business plan. Therefore, every well thought-out business plan includes a description of products and services, a competitive analysis, a marketing plan, a management plan, and a financial plan. Your business plan will provide you and potential investors or lenders with a clear understanding of your objectives, strategies, and financial viability. 

 

Business plans are prepared as a necessary instrument for raising capital from potential investors, bankers and other lenders. It is an essential document when taking your business public or selling all or part of a company. In fact, without one, soliciting a bank for funds is pointless. To lenders or potential investors, it not only provides information and reveals an evaluation of your venture’s feasibility, but also reflects your management abilities. An analytical, objective business plan convinces lenders that you are capable, organized and prepared. Onethat is poorly researched or makes unsupported assumptions shows that you are inexperienced and, in their eyes, reckless. Lenders receive an enormous number of proposals and usually don’t spend much time with them. That means your plan has only a few minutes to make a good impression, and must stand alone as an initial sales tool. 

 

Preparing a business plan will take time, but it is well worth your investment in the long run. Not only will this document provide valuable information to outside investors and lenders, it will lay out the game plan from which to operate your firm. This is, by far, the most important use for your business plan. It will become your blueprint and direct you towards achieving your overall business goals.