You may hear everyone telling you about the value of making or writing a business plan, from the lender you hope to do successful business with all the way down to the guy that prints your business owners’ cards. In a vague sense, most people have some broad sense of what a business plan, but what is it really? Is a business plan a full blueprint of every detail that goes into operating a business model or is it more of a checklist than anything else?
Define Business Plan
By definition, starting a business plan is a formal statement of a defined agenda of business goals, why it is believed they can be achieved, and as importantly, how they will be achieved. It is, after all, achieving those goals that generate capital and allows for loans to be paid and new projects to be undertaken. As you can see, what is a business plan? is in actuality a little bit of everything all rolled into one – when they are prepared correctly.
Business plans are not just for the entrepreneur looking to launch a new business idea hoping to attract some venture capital or target market, they are a vital part of every well-run business from Joe’s Corner Barbershop to Microsoft. It’s true that even massive multi-billion dollar corporations use business plans. A business plan definition lays the groundwork out in operations plan terms for expansions, profit projections, potential changes in clientele demographics, and as a bonus, a nice report card of sorts for potential investors to peruse. Big or small, a business plan is a perfect way to see the past and make the future reality.