Many business people talk about Business Plan and got well preparation. But not all businessmen have good business plan or some businessmen even do not have any. You may not believe why a businessman doesn't has any but that's the truth and happen to many businessmen who just follow traditional procedures and neither interested in a change nor to follow current market industries. As result, some industries/companies are forced to close since they can not recover and go forward with their business.
So, it is very important to understand the necessity of good Business Plan in every business we undergo.
According to BusinessDictionary,
business plan is "Set of documents prepared by a firm's management to summarize its operational and financial objectives for the near future (usually one to three years) and to show how they will be achieved. It serves as a blueprint to guide the firm's policies and strategies, and is continually modified as conditions change and new opportunities and/or threats emerge. When prepared for external audience (lenders, prospective investors) it details the past, present, and forecasted performance of the firm. And usually also contains pro-forma balance sheet, income statement, and cash flow statement, to illustrate how the financing being sought will affect the firm's financial position."
But keep in mind that above phrase "...is continually modified as conditions change and new opportunities and/or threats emerge.." does not mean that we have to modify or change all the time while we are following our current business plan. It is rather understandable that business plan always comes with time frame such as 1 year, 2 years or 3 years plan and better make changes after analyzing the first business plan period.
In other meaning, business plan is about result and it is not just paper plan. It is about the meeting point of purposes and business outcome. We need to look ahead for certain period, allocate external and internal resources, focus on key success factors/points, and well preparation for problems and opportunities on the way to our business target and goals.
So, it is very important to understand the necessity of good Business Plan in every business we undergo.According to BusinessDictionary,
business plan is "Set of documents prepared by a firm's management to summarize its operational and financial objectives for the near future (usually one to three years) and to show how they will be achieved. It serves as a blueprint to guide the firm's policies and strategies, and is continually modified as conditions change and new opportunities and/or threats emerge. When prepared for external audience (lenders, prospective investors) it details the past, present, and forecasted performance of the firm. And usually also contains pro-forma balance sheet, income statement, and cash flow statement, to illustrate how the financing being sought will affect the firm's financial position."
But keep in mind that above phrase "...is continually modified as conditions change and new opportunities and/or threats emerge.." does not mean that we have to modify or change all the time while we are following our current business plan. It is rather understandable that business plan always comes with time frame such as 1 year, 2 years or 3 years plan and better make changes after analyzing the first business plan period.
In other meaning, business plan is about result and it is not just paper plan. It is about the meeting point of purposes and business outcome. We need to look ahead for certain period, allocate external and internal resources, focus on key success factors/points, and well preparation for problems and opportunities on the way to our business target and goals.
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