The world is full remarkable innovations that can change the course of a whole industry.
Unfortunately, most of these ideas never see the light of the day because ninety percent of the world doesn’t have the drive and commitment to move from an idea to an actuality, and those with the wherewithal often don’t have the tools or know how to raise the funds to turn a great idea into a great reality.
That’s where a business plan comes in.
Funding Your Business
In order to fund a project or any entity with money, be it through a bank, a grant, investors, start up business loan, or a venture capitalist. I company funding you will want to know just what they are investing in.
The people who sort winning ideas for a living want to see that you’ve thought out a strategy for implementing an idea, be it for a startup company, a new product, or a unique service. A business plan is your opportunity to present these entities with the necessary information they will need in an easy to read and aesthetically pleasing manner.
Though each funding source will have their own criteria and a business plan should be calculated to appeal to their particular interests, none will loosen their purse strings without a convincing presentation.
Draft One As An Internal Planning Device
Business plans are not written exclusively to obtain funding from an outside source, however, and it is often a good idea to draft such a document as an internal planning device. A business plan can be written as a managerial tool stating the goals of your organization and your intended route of success.
Where a statement of purpose exists to emphasize the philosophy and end goal of a company, a business plan can act as a road map and a code of conduct for how you will reach those goals and will illustrate how your philosophy will be put into practice.
Such a document should reference your mission statement, provide a description of the company structure and corporate hierarchy, and clearly delineate the financial goals and projections of the company.
This manner of business plan can grow with the company and should always be open to revision as a company refocuses its goals or re-defines its purpose.
Other Uses For A Business Plan
There are a number of other times a business plan should be drafted as well.
Landlords and leasing agencies may require a business plan before granting a lease to ensure the renters will meet the financial obligations of the lease or will not interfere with an owner’s personal or professional interests. A business plan is the ideal instrument for illustrating these things to a prospective landlord.
Business plans have a variety of applications and can take as many forms as there are business owners and innovators who draft them.
These are only some of the most common reasons for drafting such a document. Anyone considering going into business for themselves, for hoping to turn a hobby into something more serious should consider crafting a business plan.