Business Plans in simple English for young Entrepreneurs
Written by Amos Gideon
Note: this is a lengthy post and as such you may want to read it more than once and even archive it for future use. To this end I have prepared a PDF version of the post which you can download for free Here.
Also, because of the length I’ve divided it into two parts; below is the part 1.
Without further adieu let’s get started,
20% yes, that’s the percentage of businesses that survive to be a year old of all startups. According to a recent survey by http://smallbiztrends.com, a whooping 64% of startups with business plans saw sustained growth in their businesses.
Now although diverse reasons could be cited for business failure, lack of a concrete business plan is always on top of such lists.
At this point you would be tempted to ask: “But, why would anyone start a business without a good plan seeing its importance?”
Some don’t see reason for it while others are either ignorant or misinformed about it.
For this reason, this part 1 of the post would focus on the what and why of business plans.
What are Business Plans?
Forget the formalities, a business plan is as simple as the idea you have for a business scribbled down. In other words, it is a guide—a roadmap for your business that outlines goals and details how you plan to achieve those goals.
It could be as simple as a one page item outlining how you are going to do your business. It could as well be a big read item outlining same in more indepth details.
This definition is enough to give you the best view Of Business plans.
The need for Business Plans
I’ve already established that business plans are important to enterprises especially startups. Now I’m going to now give you five concrete reasons to support my claim of the need for business plans in enterprises.
- Clarity of Purpose
Writing a business plan drives your idea forward giving it clarity and direction. This is very important because without a clear focus in sight, your business would easily wander off to No where!
- Anticipate hitches
A good business plan does not only consider the good prospects of the venture. It goes ahead to look at possible problems and proffer solutions to them. This singular function could save your startup from an early grave.
- Aids Growth
A business plan is a prerequisite for the growth of your business. It is the principal requirement for the acquisition of funds to promote the building of your business. This way it aids the growth, expansion and thus put your business on right standing.
A good business plan easily communicates the idea to others (potential partners, spouses and investors). It shares your strategy, priorities and course of action. This would help the startup gain confidence, funding and advice which are integral to the success of the business.
A business undertaking is a person of itself. It takes decisions and works towards success. These decisions are taken based on laid down rules. A business without a plan is always in dilemma as to what option to take, who to hire, how much to charge amongst other decisions. This derails the process of mega growth as the entrepreneur is more concerned with solving today’s problems and has little or no time for future plans.
There are more benefits of business plans, these are just a little out of the boundless. With time you’d experience more of them.
After knowing what business plans are and their importance in business, what next but to know how to draft a concrete business plan for your enterprise. Well, that is what the second part of this post which would come in a fortnight time is going to cover. In it I’m going to tell you the essential features of business plans and then provide you with a template and sample to draw up yours.
As for now I’d like to leave you with the words of Tim Berry who once said:
“Good business planning is 9 parts execution for every 1 part strategy.”
See you in a fortnight time and make sure you spread the word.
It is he who shares that cares.