A business plan is the blueprint that guides aspiring entrepreneurs as they build their new business ventures. You might not need a deeply customized business plan if you are seeking to license or sell an invention, a patent or a prototype product. The business plan must acknowledge the potential for negative cash-flow and demonstrate how fixed and variable expenses will be met during that time.
Financial plans need to extend three to five years. This summary is also an important communication tool for employees and potential customers. A thorough business plan should have the information to serve as a financial proposal and should be accepted by most lenders.
You also should write down the descriptions and scope of your products and services, touch base on production and identify means on how you can market your “brain – child” to your targeted niche. A business owner’s toolkit will always have sample business plans and information on how to create a plan.
Running a business without a formal business plan is financial suicide. Likewise, the value proposition of your products or services must be articulated. Having written dozens of business plans for clients I can attest that creating a plan that works is, well, work.
The executive summary deals with the time needed for planning and the amount of workload that is to be executed within a stipulated time period. Not everyone who starts and runs a business begins with a business plan, but it certainly helps to have one. As industries around the world have become more specialized, more and more people are mustering the courage to start their own businesses.