Once you have your “brilliant” business idea, the next step is to form a business plan.
What is a business plan?
A business plan is basically a carefully prepared document that gives all the possible information about what is going to happen in the company that you want to start. It gathers all the information required to take decisions about the business.
Why make a business plan?
The process of planning makes you think. This makes you understand what decisions and steps need to be taken.
A comprehensive business plan gives you a better understanding of the details than would be possible if the business were just run on a day to day basis.
A well-written business plan will be very effective if you try to communicate with partners, employees, investors or venture capitalists ideas about your business.
A well thought out business plan will convince investors that you are serious. This greatly increases your credibility.
A written document is a reference to how much a business has achieved and how much it plans to achieve in the future.
In conclusion: I you are a serious entrepreneur, you have to have a business plan. If you don’t, your business will not be going in any direction in particular. You shall waste a lot of time making haphazard decisions instead of progressing.
Steps in the planning process:
The following steps are followed in the process of making a business plan:
1. Understanding your business - Situation Analysis
2. What do “you” want? – Forming Personal Objectives
4. Forming the right business objectives
5. Forming Strategies and Tactics
6. Written Document
7. Review & Control and back to Step 1
This guide takes you step by step through the entire process of forming your business plan.