The importance of a business plan
IF you fail to plan, you plan to fail! How true this is, not only for business but also for anything you do in life. Many business owners have no clear, concise and written plans for their companies.
IF you fail to plan, you plan to fail! How true this is, not only for business but also for anything you do in life. Many business owners have no clear, concise and written plans for their companies.
If you do not have a proper idea of the overall picture of your business, it is bound to fail. So it is very important for us all to start setting business goals in order to succeed in whatever we do.
It all starts with where you are today and where you want to be in three to five years in terms of business performance, market share, competition, reputation, size, image and geographical coverage.
The business plan gives you a roadmap to determine the resources that you will need to make the business work. It must contain such things like the finances needed, human resources, the equipment, sources of raw materials, the product, the market to sell to and how you plan to get to the market.
In a business plan, one must make an honest appraisal of what's doable and set forth assumptions that are realistic. Do not get a “consultant†to do the business plan for you but only to guide you in putting it together. This will make it easier for you to understand and to follow.
Promising more in the business plan than can be delivered and failing to comply with set plans is the number one cause of business failure. And this is the main reason why a number of businesses which seek financing run into trouble.
I met an entrepreneur who was driven by the “think big†concept, in his quest to start a business; he acquired the best equipment for processing fresh juices but paid little attention to the supply side of raw materials. His business went in receivership because of failure to pay the bank loan.
So, do thorough research and planning before you start investing your money. Always remember, the money you put in the business will make you proud if you planed it well. Start planning today, it doesn't matter whether it's an existing business, you can still plan for the next 2-3 years.
The writer is a business development
consultant and an entrepreneur
rehmah@centurymarketing.co.ug
If you do not have a proper idea of the overall picture of your business, it is bound to fail. So it is very important for us all to start setting business goals in order to succeed in whatever we do.
It all starts with where you are today and where you want to be in three to five years in terms of business performance, market share, competition, reputation, size, image and geographical coverage.
The business plan gives you a roadmap to determine the resources that you will need to make the business work. It must contain such things like the finances needed, human resources, the equipment, sources of raw materials, the product, the market to sell to and how you plan to get to the market.
In a business plan, one must make an honest appraisal of what's doable and set forth assumptions that are realistic. Do not get a “consultant†to do the business plan for you but only to guide you in putting it together. This will make it easier for you to understand and to follow.
Promising more in the business plan than can be delivered and failing to comply with set plans is the number one cause of business failure. And this is the main reason why a number of businesses which seek financing run into trouble.
I met an entrepreneur who was driven by the “think big†concept, in his quest to start a business; he acquired the best equipment for processing fresh juices but paid little attention to the supply side of raw materials. His business went in receivership because of failure to pay the bank loan.
So, do thorough research and planning before you start investing your money. Always remember, the money you put in the business will make you proud if you planed it well. Start planning today, it doesn't matter whether it's an existing business, you can still plan for the next 2-3 years.
The writer is a business development
consultant and an entrepreneur
rehmah@centurymarketing.co.ug