The Process of Creating a Business Plan Teaches You Many Things
An investor, banker or lender will demand a plan before they make any financial commitment. Besides being a prerequisite to getting finance for your business, a plan also is a blueprint for efficient management of your new business. It can be argued that in a fast-changing market, a business plan may quickly become obsolete. However, the insight gained from the planning process can prove to be an invaluable experience and come in handy to deal with the various challenges your business throws up from time to time. A Plan Creates Tactics and Objectives A plan describes the long term vision of your venture and the objectives you aim to achieve during a given time frame. It will also detail the tactics and strategies deployed to reach those objectives. A well structured plan will provide the basis for operational budgets, business procedures and management controls. It must be remembered that no two plans are exactly the same, ever. Every plan is tailored to meet the specific needs of a bu...