Reading an article on the web the other day reminded me of some important things we must do before we even begin to write a business plan. For example Allbusiness.com mentions:

 

“Prior to writing your business plan, you need to take time to focus on two primary goals: What you see as the goal and future direction of your business and what your goal is for writing the business plan.”

Yes, even your business plan has to have a goal.  

 There are two reasons for writing a plan. One is to attract funding and the other to use as a guide to running the business.

While one plan can supply both purposes, you can mold the plan to more directly center on the financial requirements of the business if you are trying to acquire funding. You want to be very specific about how much is needed and how it will be spent; also when the lender will receive a return on their investment.

On the other hand if you are writing the plan for yourself or workers to be used as a guide, then the weight will be more upon attaining certain objectives and milestones. There will be more of an emphasis upon the business process itself.

Jane Smith adds that a good business plan will produce these things: 

Refine your own ideas and bring in ideas from key customers and team members.

   

Develop goals and objectives for the whole business and individual departments.

 

Communicate how these targets will be met.

 

Demonstrate how the business will provide financial returns at low risk.

 

Stimulate readers' enthusiasm for the project so that they will offer financial backing.