Constructing a business plan isn't something that should be taken lightly. While some entrepreneurs may see it as a formality that lacks the luster of grand speeches or flashy images and videos, the business plan is crucial. Not only does it sell the potential investor, customer and employee on the vision, it specifically outlines how sound and well run the business will be. Business plans can be long, complicated, and daunting to write, so we highlighted five essential items that must be included in every business plan, no matter the venture. A key purpose of a business plan is to give readers a total understanding of the company's goals and how they will be achieved.
Plan Your Business Plan
Sample Business Plan: An Example
Financial planning is the task of determining how a business will afford to achieve its strategic goals and objectives. Usually, a company creates a Financial Plan immediately after the vision and objectives have been set. The Financial Plan describes each of the activities, resources, equipment and materials that are needed to achieve these objectives, as well as the timeframes involved. When drafting a financial plan, the company should establish the planning horizon,  which is the time period of the plan, whether it be on a short-term usually 12 months or long-term 2—5 years basis. Also, the individual projects and investment proposals of each operational unit within the company should be totaled and treated as one large project. This process is called aggregation.
Top 10 Personal Business Goals You Can Set and Achieve in 2020
All of these efforts are the tools you will use to grow your business. Your objective should be tough but reachable, and could read something like this:. Setting the right goals and objectives for the implementation of your business plan will push you to show up and perform every day. If you don't set goals that challenge you on a daily basis, it's easy to stagnate in your business and simply drift along doing ok. Your objectives are where hopes and ideas are translated into action.
You've decided to write a business plan, and you're ready to get started. You've just greatly increased the chances that your business venture will succeed. But before you start drafting your plan, you need to--you guessed it--plan your draft. One of the most important reasons to plan your plan is that you may be held accountable for the projections and proposals it contains. That's especially true if you use your plan to raise money to finance your company.