Why you need Business Planning?

Author: 
Selwyn Zhou

According to Wiki, a business plan is a formal statement of business goals, reasons they are attainable, and plans for reaching them. It may also contain background information about the organization or team attempting to reach those goals. Business plans may target changes in perception and branding by the customer, client, taxpayer, or larger community. When the existing business is to assume a major change or when planning a new venture, a 3 to 5 year business plan is required, since investors will look for their annual return in that timeframe.

business-plan-management-diagram

The Business Plan should provide a clear description of what needs to be done, including when and how to implement an organization’s strategic goals and vision. It should itemize and describe the benefits that an organization will realize if the plan is followed, as well as the costs that will be incurred. The plan should include any requirements for achieving its purpose, and a scorecard to gauge performance once the plan is accepted and unfolds. It should also be written with a clear focus on the readership. Ultimately the Business Plan needs to be approved and funded.

To make it short, you will need to provide answers for these questions in a business plan:

  • Describe who you are
  • Describe what you want to achieve
  • Describe the tangible benefits to be realized
  • Quantify and/or qualify the return on investment
  • Detail the options and the suggested plan of action for attaining the desired end state
  • Provide evidence that your ‘business case’ has been fully researched and is ‘highly’ viable

This figure below shows a typical structure of business plan:

structure of business plan

Right now, there exist a lot of business planning softwares in the market to help you make your works easier. Most of them are free of charge. You’d better make good use of them so that you find a easier way to success.

We provide another free guide to show you detailed business planning process procedure and comparison between leading business planning softwares in the market. If you are interested , please go by to take a look.