Business Plan Development

A business plan is a formal declaration of a company’s goals. It explains the reasons why these goals are attainable and the strategy to pursue them. The business plan is a decision-making tool that must include all the information required to achieve said goals. The main value added by a business plan is the creation of a detailed written description that evaluates all aspects of the financial viability of a business. This document grants credibility to a good idea by crystallizing it in a way that is understandable and attractive to any reader.

 

A business plan performs several key functions:

 

• Clarifies, focuses and researches the development of the project and its perspectives.
• The objective is defined and refined through the use and analysis of appropriate information.
• It provides a logical framework that can be used to develop and pursue the strategies of the company.
• It can act as a basis for discussion with third parties who are willing to finance the company –physical and institutional investors, such as banks. It is an essential tool for sales.
• It can uncover omissions and/or weaknesses in the business planning process.
• It is a point of comparison to measure and review the real performance of the company.

 

A business plan should acknowledge that the company and the projects are not static objects. However, should also reflect the current situation and needs as well as future expectations. Additionally, it should emphasize the strengths of the company but also be realistic about the areas where it can improve.