| What is a Business Plan?
Research has proven that businesses with a plan have grown faster, both in terms of turnover and profitability, than those that don.t. Whilst a business plan is often mandatory for those who want to borrow money from the bank or seek funding from investors, it should not be optional for the rest. In today.s highly competitive markets, adequate planning and research is almost certainly necessary if a business is to be successful . whatever its size and how ever long it has been in existence. So what is a business plan?
Various terms are used to describe the business planning process - business plans, business strategy, marketing strategy, strategic business planning, sales planning . but they all cover the same basic principles. When faced with a business planning or strategy development task it's important to clarify exactly what is required and that means committing to writing. A plan is a statement of intent . how to organise effort & resources to achieve an outcome.
Take for example a building project . whether it be a small extension, a new five bedroom house or a multi-storey office block. You couldn.t start work without a plan, to determine the design and structure of the building, the materials to be used, the labour required, the costs involved and, equally important, whether the end result will meet the added value, sales or rental targets envisaged. And so the parallel with business becomes apparent. In this context a written plan enables all those involved in managing a business to plan, review and monitor its development. Whatever the size of business, the plan should cover FIVE keys areas: Marketing
This is the process by which a business decides its strategy as to what it will sell, to whom, when and how and then how it does it. This covers everything from company culture and positioning, through to market research, new business/product development, advertising and promotion, PR and all the sales functions as well. Personnel
People are essential to the success of a business. The plan needs to cover details of the key personnel who will run the business, their background, capabilities and their roles. Employment policies and procedures, skill requirements and training processes for all staff also need to be covered. Operations
An outline of how the business will operate and all the operational processes involved, including the premises, plant and equipment required. This section should also cover matters such as quality control, health & safety, use of sub-contract services and so on.
Finance
The plan must include spreadsheets of the sales, profit and loss and cash flow forecasts, together with a resume of how the assumptions have been arrived at. Details of any finance needed and where and how it is intended to obtain it. Also details of how the accounting policies and procedures will operate. Risk Assessment
As no business plan is without risk, it is sensible to confront any possible shortcomings and explain any contingency plans or measures to deal with these. The most important objective of any business plan is to demonstrate a return on investment. Without a reasonable return, a business is unlikely to flourish or survive. | 
