New to entrepeneur

One of the most enjoyable of all businesses to run, at least for those with the skill to run it, is a bakery. After all, being surrounded by cakes, pies and other pastries all day is a dream come true for many people.

No matter how skilled a baker you are, however, you will be unlikely to succeed in the bakery business without the foundation provided by a bakery business plan. Such a business plan is an essential part of running any type of business, including a bakery business.

==Planning For Tax And Liability Issues==

That is because not only will a bakery business plan be essential to raising startup capital and ongoing operational costs, but it will be an important document when it comes to planning for taxes and liability issues as well.

==The Structure Of Your Business==

For instance, how you structure your business can have a significant impact on your potential personal liability, and a solid bakery business plan can help you plan for the structure of your business.

In addition, your business structure will also affect the taxes for which you may be liable, and a solid bakery business plan will help you to better plan for those taxes, and keep them at a minimum.

==Seek Professional Advice==

Of course, when planning for such complicated issues as taxes and liability, it is a good idea to seek professional advice. Having a good business attorney and tax accountant take a look at your bakery business plan, and make needed revisions, is always a smart idea.

==Using Your Bakery Business Plan To Get Funding For Your Business==

While these tax planning and liability issues are certainly important to the success of any business, it is in the area of raising money and startup capital that the bakery business plan you create will be most important.

The business plan is the first document any banker will want to see, and it will be virtually impossible to raise the funds you need for your new business venture without a solid business plan behind you.

Shaunta Pleasant is a professional web writer and editor on business plan topics. Visit my site to learn more about writing a business plan at http://www.business-plan-made-easy.com/bakery-business-plan.html

Author: Shaunta Pleasant
Article Source: EzineArticles.com
Digital economy, mobile technology

After 20 years of self employment and the last 4 as a small business consultant and coach helping people to start or grow their businesses, I can say with no shame I used to feel that business plans were only for wimps. That was until I did one.

It’s easy to knock something you’ve never tried. After many years of not only starting companies but actually succeeding without a plan, it would be easy to think that business plans aren’t necessary. Part of that lies in the fact most entrepreneurs are actually working a job not growing a business. That is certainly where my maturity as an entrepreneur was until I hit my mid 30’s. Sure I had earned an income and eeked out a life as my own boss but I really didn’t see the “business of the business”. What I saw was that I got what I wanted which was to not have to work for someone else. Woo hoo — I was my own boss. Truth be told it was my lack of planning the company and its direction that hindered my growth and financial prosperity. Thankfully I figured it out and now, my newest endeavor is going places I never dreamt possible when I lacked a written strategy. Doing a business plan, the very act of doing it, is almost enough on its own, to take you to the next level as an entrepreneur.

You see, when you strategize on paper, you begin to understand it as a business. When you don’t put it to paper, you more than likely create a job. For example with lawn maintenance we think of the cutting of the lawn, not the structure of the organization, the future growth and direction of the entity, the various marketing strategies etc.. There is a critical difference between having a business and the “business of business” and that requires another article of its own. So, if you ever want to get out of the grind and truly grow a thriving company you need to plan to grow it. Plan every little bit of it and then re-visit your plan often and make changes as things evolve. Only when we sit down to lay out our vision on paper do we see it is so much more than just a job we’re creating. Not planning a business causes us to fulfill the role we “thought of” when we thought of that “business” and not see the things planning would have taught us. In other words, we don’t know what we’re missing until we’ve actually been through the planning process.

Yes, most business planning is boring with a capital B and a really long “O” but that is because most planning mechanisms and information on the topic are intellectually based and they have you thinking at a level of logic – marketing, operational procedure, organizational structure, customer service, accounting – when we plan these things we are mostly adult minded and leave the excitement, the passion out of it. So when it is done the traditional way, you’re left with an uninspiring stack of paper that bores you to tears and that to me is a waste of time. Be sure to put the fun into planning a business. Have it appeal to you on an emotional level because that is what drives results and stop worrying what type of planning procedures the academic world is trying to push. Several studies have shown that fewer than 10% of the companies in the Fortune 500 ever borrowed start-up money from a formal institution. They got their money from friends and family. So the chances are great that a banker won’t see your plan anyhow. Make the plan appeal to you first and foremost. If you need a more formal plan, you can always go back and add the fluff others may require. Until then, enjoy the process and know that the clearer your vision, the easier it is for you to achieve your goals and the reason is simple — you’ll know exactly what you want and have a map to get you there.

This article was written by Business Launch Expert, Coach and Entrepreneur Dan Nichols. If you’d like more information on starting and growing your small business he offers grass roots ideas via his newsletter sent out once to twice monthly free of charge. If you sign up before the end of this month, we’ll send you a free software program that if used will improve your business within 48 hours – guaranteed. For more on the succeeding in and on starting a small business visit http://www.businesslaunchexpert.com

Author: Dan Nichols
Article Source: EzineArticles.com
US State tax list

You may be a start up organization in need of a business plan layout to drive you towards success. Or perhaps you are a Solo home based entrepreneur or a well established long term company. You may be a large organization employing more than 100 people or what if you are a not for profit charity or organization wanting to grow. One thing holds true; you need a business plan to move forward.

All types of businesses are obviously in existence in hundreds of different industries and separate niche areas – but one thing holds true – you must have a business plan to drive your growth. But why have a plan after all, only half of all businesses appear to have created one. Here are 5 compelling reasons why a business plan is a must have tool.

Business Plan Layout Essential #1: You have a summary of your vision and goals

Without a vision and goals summarized in the Executive Summary how do you ascertain where your business is going? I mean you would not build a house without a plan so why do so many people go into business without a written down plan of attack? Studies show only around 56% of all small businesses has a current plan.

Business Plan Layout Essential #2: Analyse and plan your product and services benefits and how you will take these to market.

The best approach to marketing anything is to analyse each service or product offering, work out how it will benefit the end consumer and build a strategy around telling prospects or customers about it effectively. So your business plan layout must include a section on Market Analysis and the key strategies you will use over a 12 month period.

Business Plan Layout Essential #3: The crucial financial analysis

The very best plans have a projection on profit and loss for at least 12 months ahead. There is a budget, balance sheet and cash flow tables showing the past, present and future possibilities – where practical.

Business Plan Layout Essential #4: Who and what will your management team be doing to drive growth?

Management Analysis for your plan will describe the organization and the key team members and their exact tasks, key performance indicators and accountabilities. Here is a summary below of a perfect business plan layout:

1. Executive Summary: Write this last. It’s just a page or two of highlights.
2. Company Description: Legal establishment, history, start-up plans, etc.
3. Product or Service: Describe what you’re selling. Focus on customer benefits.
4. Market Analysis: You need to know your market, customer needs, where they are, how to reach them, etc.
5. Strategy and Implementation: Be specific. Include management responsibilities with dates and budgets. Make sure you can track results.
6. Web Plan Summary: For e-commerce, include discussion of website, development costs, operations, sales and marketing strategies.
7. Management Team: Describe the organization and the key management team members.
8. Financial Analysis: Make sure to include at the very least your projected Profit and Loss and Cash Flow tables.

Lastly, ensure you will implement your plan so results happen. Too many companies spend months creating their plan only to see it gathering dust in the bottom of their desk drawer. No one intentionally does this. It is just that the every day process of completing your normal work duties can often mean implementation is put on the back burner. Take this business plan layout above and make it work for you.

Start your business plan today Business Plan Layout Click Right Here And Discover over 27 Secrets for Creating a Powerful Business Plan Today.

In the past 15 years, business coach Brian Jackway has owned, trained, managed and coached 146 different businesses to develop sustained, relentless business growth. To take advantage of this inside knowledge and to get your free business plans for small business success tools, tips and resources visit Business Plan Layout And Discover over 27 Secrets for Creating a Powerful Business Plan Today.

Author: Brian Jackway
Article Source: EzineArticles.com
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Most solopreneurs I know are not excited by the planning involved in running a successful business. It may be difficult for you to know where your business is going or to put into words your intentions. However, there is no more essential a step to having a successful business than being able to put a business plan together.

In traditional businesses, a business plan is used to approach a bank or other source of funding. Imagine the bank’s response if the company couldn’t describe their goals. Your business has equally important planning needs even if you do not get bank financing (a good thing these days). If you cannot complete the planning process, your business is starting from a disadvantaged position.

The purpose of a business plan is -

* to help you to identify where you are,
* to decide where you want to be,
* to create a pathway that you will use to get there.

Does this sound familiar? It should – because this is exactly the process you must go through to successfully achieve any goal. Would you allow your client to step into a vast, important project without considering the exact destination or the route to take to get there? Of course not!

Your business plan is like your client’s goal – it is a record of all the tasks you must do to succeed as an entrepreneur. Think of it as your guide book that you will use – and change – on a regular basis as you move towards your successful business. This becomes especially important if you do not have a background in business. Walking forward in your business with your eyes wide open and a solid plan in your back pocket can help relieve a great deal of stress and anxiety.

Traditional business plans contain a lot of information. This often includes a company overview; descriptions of services and products; target markets; competition; analysis of strengths, weaknesses, opportunities and threats; positioning and marketing strategies; financial plans and contingency plans. Whew – that’s enough to make anyone’s head spin and it is not all necessary for a successful business plan that is not directed towards obtaining financing.

The elements you need in your business plan can be much simpler. Try this outline to produce a clear and simple document – not necessarily more than a few pages long. The current version of my company business plan is three pages long and is still more concise than a traditional business plan.

Fit your planning into these five sections.

Vision – Describe what the business is going to be. What is the dream that you would like to have five years down the road?

Mission – Why are you going to run this business? This is your passion and your intended gift to the world.

Objectives – This is where you describe exactly what you are going to achieve. Describe your product(s), revenue, expenses, client base and size of mailing list. Be detailed and specific.

Strategies – These are the overall techniques you will use to achieve your objectives. How will you reach those prospects and new clients? How will you structure your business and your time?

Action steps - This is a description of all the specific action steps that need to be done to accomplish your objectives. A successful plan will include a timetable for the steps to help you monitor progress. Take your time with this part of the process because this is where the rubber meets the road. Design a plan that is thorough, specific for the needs of your target market and individualized to your personal strengths and preferences.

Once you have a business plan like this in place, you can step forward confidently. This document is a road map for the development of your business. It will work best if you review it for changes every few months and use it regularly as you decide priorities and what tasks need your attention.

Business planning is an easy step with the support of a business coach. Get a free strategy session to review elements of your plan with business coach Janet Slack. Contact Janet at janet@solopreneur.biz to schedule your strategy session now.

Author: Janet Slack
Article Source: EzineArticles.com
Eco Friendly

There are conventional business loans available, however, you need to do your research and use it to write a business plan before approaching a lender. No one will loan you money strictly because you have decided to start a business. Lenders need to know that you have carefully planned your business activity.

The loan officer will analyze your plan and decide if you have good chances to generate the short and long terms profit necessary to pay the money back. A good business plan is essential because a business that does not work on paper is most likely not going to work in reality.

If you want to qualify for a business loan, you will need a sound business plan with two or three years cash flow projections. You also need good credit history, and sufficient financial resources for a down payment.

Let’s take a look at what a business plan is.

A business plan is a document which describes the business you intend to start and how it will become profitable. A business plan usually starts with a mission statement outlining the goals of the business and goes on to demonstrate how the business owner will achieve those goals. It also has to include a detailed description of the marketing strategies you plan to use.

A thorough business plan should also contain a formal break even analysis, the profit and loss projection, and a cash flow analysis designed to demonstrate that if the business grows as expected, it will generate income.

It is definitely a good idea to write a business plan even if you are not going to borrow money.

A business plan is not just an instrument designed to attract potential investors or to convince lenders of your reliability. A solid business plan it is a real plan which should prove to yourself, the potential owner, the financial viability and soundness of your business concept.

The very process of creating a business plan will force you to carefully weight the key issues before you take any action toward starting the business, such as what your start-up costs are going to be, how you will raise the necessary funds, which marketing strategies are more appropriate, all this will help you figure out if you have a winner.

At this point if you are applying for a business loan it would be desireable to find somebody who can produce a professional presentation, that would not make your business plan any more successful but would demonstrate to the bank loan officer how serious you are about your new business.

The structure, content, and format of your business plan will depend on your business idea and your intended audience. To maximize your chances to obtain your business loan from a bank, your business plan will have to present solid financial data and market research in a professional, polished package.

Mark Van Neem

The author is the content manager of two websites covering all aspects of business loans [http://theweblog.info/?cat=14]. To find resources and detaied information visit http://www.BusinessLoanOnline.info.

Author: Mark Van Neem
Article Source: EzineArticles.com
Alternative energy

For many entrepreneurs the creation of a business plan is the biggest hurdle in the development process of their fledgling enterprise. There is a mystery, almost a dread in many people when discussion of a business plan requirement is first broached. They conceptualize a boring, dry, painful experience and many would like to avoid this step if at all possible.

What is a Business Plan?

A business plan is a document that qualifies, quantifies and narrates a commercial opportunity. It is that simple to state, more difficult to execute, but anyone can customize a business plan that gets results. The plan must have an exciting Executive Summary. Like the opening scenes of a movie, or the first chapter of a book, the writer must set a hook.

Typically, active investors, angels, venture capital groups and investment bankers are deluged with business plans. Screeners typically read the document before passing along to decision-makers within the firm. However, very few move along the decision making food chain precisely because the Executive Summary lacks excitement, punch or sets a high level of anticipation about what is inside the document.

Having written dozens of business plans for clients I can attest that creating a plan that works is, well, work. No two plans are alike. The plan must be customized, well researched, structured and direct. I receive more than 500 business plan submissions annually in my consulting firm. Less than 1% have commercial potential as written. Many describe products, services, retail or new business development ideas that otherwise might be exciting. However, the plan does not convey that potential.

One of the worst things to evolve from the arrival of the inter-net is the ability to download a business plan template and write the document by filling in the blanks. The template itself is not problematic, I use a self-developed template when I customize plans. The problem is that many entrepreneurs do not have the writing skills, the research in hand, know the keys that turn on investors and thus, take shortcuts. Filling in the blanks without sweating the details and doing comprehensive research results in a document that will not be read and an opportunity that will never launch.

Rule number one in the development of any commercial opportunity: shortcuts equal failure!

I am a self-taught business plan writer. If I can do it, anyone can. In reality, however, most people just want to expose their opportunity to investors, licensees or potential partners. They don’t have writing skills, do not know the types of research necessary to support the plans sales model, need help in creating the marketing strategy, and will never be able to narrate financials.
Where can they go to create and exciting business plan document.

The following are resources readily available in most communities. Many are free.

Many colleges, community colleges and universities have developed small business incubators. They attract additional state funding, as small business growth and development are keys to job creation and an increased tax base. Take advantage of this community asset. Students, graduate students and professors are often available to direct your efforts. Ten years ago there were only a handful such programs. Today, over 1000 schools have some version of an entrepreneurial program.

Many states, regional and local governments offer business development programs. They have retired business people and mentors on hand to support, guide and train prospective entrepreneurs and guide business plan creation. There is no charge for utilizing this service, after all, your tax dollar supports these programs.

SCORE, the Service Core of Retired Executives is a Federal Government sponsored initiative. Thousands of retired, experienced business people make themselves available to evaluate commercial opportunities and direct the development and launch of those deemed to have potential. They are often intimately involved in creating business plans.

The Ewing Kauffman Foundation in Kansas City, MO is devoted solely to the development of entrepreneurial development. Mr. Kauffman started, nurtured and developed Marion Labs from a tiny drug local company into a multinational, multi-billion dollar powerhouse. He also owned the Kansas City Royals baseball team. His devotion to developing and promoting the entrepreneurial base of the United States resulted in creation of the foundation that bears his name.

Seek out a consultant. Typically consultants charge a fee, just like lawyers, accountants or plumbers. The advantage of an experienced consultant is that they write business plans for a living, will be strong writers, able to properly direct or perform research, narrate financials and differentiate a commercial opportunity by creating an exciting word picture. Always seek references and talk to several before deciding on a consultant.

Why Do I Need a Business Plan?

You might not. 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. In this situation, the potential licensee would take your work product and develop a plan that fits their internal organizational needs.

However, if you are attempting to fund a start-up business, self-market a product or buy a small business you will absolutely need to create a road map. That road map is your business plan. The map is not linear, there will be curves and setbacks, but by quantifying, qualifying and narrating a well- researched, customized business plan you are much closer to success.

Geoff Ficke is President of Duquesa Marketing, Inc. An international consulting firm with over 35 experience in creating customized strategies and business plans, product development and funding opportunities for entrepreneurs, inventors and small business expansion. Mr. Ficke is also a Senior Fellow at the Page Center for Entrepreneurial Study at the Business School, Miami University, Oxford, Ohio. He can be reached at 407-260-1127 or through the company website, http://www.duquesamarketing.com.

Author: Geoff Ficke
Article Source: EzineArticles.com
Solar panel, solar power

Every business works within the context of core beliefs. We have developed beliefs that define how we work with clients, lenders and investors. We consider them to be guiding principles that, if applied, will improve the quality of your business plan as well as the quality of your relationships with others. We share them with you in this article in the hope that you will find these beliefs worthy of adopting in your business as well.Belief 1: Every business needs a written, organized business plan.

Every business, regardless of size, has goals and plans for where it will be in the future. These goals and plans are often just in someone’s head. The brain is a slippery place! If those goals and plans are not written down, chances are they will be forgotten or altered on the fly without concern for the consequences. The discipline of preparing and reviewing written plans often makes the difference between failure and success.

Belief 2: A business plan must convey the understanding of the entrepreneur.

If you do not understand what you are planning, how can a lender or investor feel confident in your management ability? On the other hand, even if you understand your plans but can’t convey that understanding to the funder, the perception is the same.

Belief 3: A business plan is a resume of your financial skills.

Your business plan is a window through which investors or lenders look at you and judge your financial skills. If your business plan looks like you have spent money unwisely in preparing your business plan, they figure you will spend the investment funds unwisely. Likewise, if your business plan shows you don’t have the skills to properly project finances, they will not have confidence in your ability to control finances.

Belief 4: Business plans are “owned” by those who make them.

We have found that for our clients to consider the business plan to be theirs they have to be deeply involved in its preparation. Don’t “invent” numbers for your business plan. Work to make sure the projections are yours and that you can confidently stand behind them.

Belief 5: Projections are future budgets.

You should consider the projections for at least the next year to be your budget. Furthermore, you can’t create effective budgets without projecting the next few years beyond them. Budgets must be prepared in the context of future strategic and tactical plans.

Belief 6: Projecting is not guessing.

Some people say you can make numbers do anything. Understand this: planning is not a game. Business plans are just that … planned actions and directions for the future. Make sure your business plan presents a coherent, defendable, and believable scenario.

(c) Copyright 2006, Leonard M. Stillman Jr., All Rights Reserved.

Len Stillman is the owner of Business Plan Tools, LLC and the Thrifty Shoppers Club [http://www.ThriftyShoppersClub.com]. He has served entrepreneurs, banks, and investors for over 35 years. You are invited to learn more about the information in this article by visiting his Business Plan Tools blog.

Author: Len Stillman
Article Source: EzineArticles.com
Alternative energy

I am often asked the same two questions. Do I need a business plan? What should I include in my business plan? I am going to answer these questions when writing this article.

Do I require a business plan?

For most businesses the answer to this question would be yes. For the majority of new businesses and ones which require investment by way of a loan or a business partner, a business plan is a must. Any potential investor will want to see for example, your future growth projections before they commit to invest.

This is the type of business which does not require a business plan:

A business which is happy to stay as it is and which has no plans to expand.

A business which never has a need to take out a loan.

A business which is a one man band and is self-sufficient, without the need of any outside help.

This type of business is rare. Most businesses therefore will require a business plan.

It is one thing being aware of your need to formulate a business plan, the problem is most people have no idea of how to go about creating one.

The business plan will aim to show its readers all about your aims for your business and how you are going to reach these targets. You need to have a strategy firmly in place before even attempting to write the plan. You should know the direction you are going to take, the investments you are going to make in staff, equipment and machinery. You need to have business goals and an idea of when each target is likely to be met.

In most cases a business plan is used to try to attract people to invest into your idea and business. It is your sales copy in effect and therefore if you create a professional, well laid out and strong business plan, people are more likely to take you seriously and to invest.

On the other hand if it is rushed, poorly written and basically a weak business plan, you are unlikely to receive the backing you are looking for.

What should be included in my business plan?

People who read your business plan will not only want to know about the business itself, they will also want to know about you. Give them a brief summary of your history and what you have achieved in the past. Write down all of your ideas and really sell the positive side of your character to them. The fact that you are really hard working and that you thrive under pressure. You love a challenge and can not only work well as part of a team but also on your own.

Describe the market place that your business is a part of, the competition and also the opportunities for growth in that market.

Give them financial figures including running costs, projected earnings, projected growth forecasts and also any financial history the business might have had.

Show them that you are flexible in that you have a plan B if plan A does not come to fruition.

Sell them your ideas by telling them why you are setting up the business for example, and where you dream it will be in five years time.

Include a mission statement explaining what you are attempting to achieve with your business.

I hope this information has helped give you an idea of how to write a successful business plan. Good luck.

Stephen Hill helps to promote a number of websites including:

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Author: Steve Hill
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Building a business plan can be time-consuming and tedious. It can also bring upon questions that pile up exponentially which leads to discouragement, self-doubt, second thought, and ultimately giving up. As a result, building a business plan is as far as most people ever get to start their own business. However, a business plan really isn’t that different from…say…a schedule you plan out in your head everyday as to what you’ll do throughout the day.

All businesses need a plan or blueprint. If you don’t have a plan, the business is bound to be chaotic and lack focus. I mean think about it. You’ve been taught to write an outline before writing an essay; you’ve been taught to do your research before doing a project; you’ve been taught to study before taking a test; and you’ve been taught to think before you speak. The list goes on and on. The bottom line is that we all must prepare before we act. Starting a business is no different.

As you plan out your business, you’ll discover new ideas and concepts, you’ll create new goals and visions, and you’ll review and analyze your business idea. You’ll be continuously refining your original Idea/Concept.

However, while a business plan is often needed when you are getting financing for your business, I find that most business owners don’t find them very useful. Why not? Because usually they are written from a very long term frame (typically five years) and once they are written, they are put on a shelf and never looked at again. I’m going to suggest some ways that you can get more out of your business plan.

The question to ask first isn’t “HOW” to write a business plan but “WHO” is this business plan for? If you’re a solo-entrepreneur, then a business plan is merely for you and you only; primarily outlining the goals and blue prints of your business and answering the 6 key words: Who? What? Where? Why? When? How? If you’re a small business, then the business plan is for your investors and yourself; primiarily outling future projections, company goals, customer base, markets, competition, management, financial status, investments, and etc… Once you identified the “WHO”, the “HOW” comes naturally because now you can frame your business around the people that you’re proposing the plan to.

As I’ve mentioned, a business plan for a solo-entrepreneur only needs to answer to him/herself…and perhaps a partner or two that wants in on the business. The business plan must address the 6 KEY words of:

1.) Who? – Who is our customer?

2.) What? – What product/service will I provide to the customer?

3.) Where? – Where can I find the market for our product/service?

4.) Why? – Why will the product/service I chose work?

5.) When? – When can I launch the product/service to the customer?

6.) How? – How am I going to deliver the product/service to the customer?

For a solo-entrepreneur, these questions must be answered in your business plan. The business plan you’re trying to build then should frame around these questions and provide details for each specific question. Once you tackled the 6 questions, you’ve layed the ground for your business and you can start preparing for the launch.

For small businesses, the business plan is a little bit different. The 6 questions still apply, but in a slight altered way. Business plans for small business should be filled with projections of what a venture might be able to achieve in the future. They should also be filled with facts about the venture’s past and about the market in which it operates. It is these facts that often convince an investor that the opportunity is right for them. Key areas in which facts must be presented include:

1.) The Company

2.) Customer

3.) Market

4.) Competition

5.) Management Team

6.) Financial Projections

Owner of The Rich Jerk Exclusive: Lazy? Broke? Hungry for Money? [http://www.therichjerkexclusive.com] Owner of Investing Central: Free Investing resources [http://www.investing-central.com] Owner of Business Startups: Everything you need to know to be an entrepreneur

Author: Steven Luk
Article Source: EzineArticles.com
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Are you thinking about approaching a Bank for finance to support your business? If you haven’t already gone to see the Manager then you may not know that the first thing he will want to see is your Business Plan.

Perhaps you are not convinced that all the time and effort needed in preparing a plan is essential If so then here are the main benefits for both you and your business.

1. No matter how good a communicator you are, you will never be able to convey your vision for the business as successfully as a perfectly put together Business Plan. It provides a clear understanding as to what you want to achieve. It allows you to express your ideas in a clearer manner.

2. Too many times business owners try to sell their idea verbally and at the end of the interview with the Bank the Manager is none the wiser than he was at the start. I think you can guess the outcome of many of those requests!

3. A Business Plan will help convince both you and the Bank of the project’s feasibility and viability. There’s nothing like having all the facts in front of you to clarify the key issues

4. There’s no getting away from the fact that a business owner who plans ahead comes across as being more ambitious and more focused. A well prepared Business Plan demonstrates you have vision and that you know what you want

5. With numerous ideas floating around in your mind, the pitfalls or stumbling blocks to success are never that visible. A mind buzzing and full of ideas will rarely achieve clarity. A Business Plan forces you to put your ideas down in writing and in an orderly manner. The result of this could be you going in a completely different direction than you initially thought of, or even abandoning your idea altogether. Not a pleasant thought, but which would you prefer? The loss of your hard capital or the opportunity to re-think your idea?

6. It is an ideal tool to monitor progress against the objectives you have set yourself (we will cover objective setting later). By checking progress against your Plan, you will be able to spot if you are moving away from your original vision and so you will know what has to be put right

7. Imagine if you didn’t have this check in place; an unnoticed change in direction or a slippage in achieving your objectives, if left uncorrected for too long, could be fatal to your business. On the other hand, it may transpire that a shift from your original vision could be a better alternative, but at least recognising this change allows you to adjust your course in a planned, structured and controlled manner

8. Every action you take has a consequence, and a Plan helps make these consequences much clearer. Being aware of the possible effect of your chosen direction allows you to plan ahead, leaving you better able to cope with whatever the world of self employment can throw at you. This is one thing that “mental planning” would not achieve

9. Putting your thoughts on paper may make you realise that you need to do more research on the demand for your product or service. It could also highlight that more investigation on your competitor’s products or services is needed. Additional research could help avoid a potentially costly mistake or even uncover a hidden advantage, which you had not seen before!

10. A Plan will guide you as to how much money is needed to make an idea work. In your mind you may have a rough figure of what you’ll have to commit, but until you do a Cash Flow Forecast you may not realise that an overdraft limit will be required, in addition to a loan for your equipment. If the mention of preparing a Cash Flow Forecast brings you out in a sweat, don’t worry as later in the book I’ll be showing you exactly how to do one

11. A Business Plan will help you get funding. One of the main reasons Banks turn down requests for loans is a lack of information to assist in making an informed decision. If the Manager doesn’t have enough knowledge about your idea or business then he won’t feel comfortable enough to support you. He has to understand your business before he can say yes. Some time in the future he may have to justify to his superiors why he lent you the money, so he needs as much information as possible to back up his decision. A Business Plan will make him feel much more at ease and so more able to say yes

12. By the time you have finished writing your Business Plan you will have a total understanding of your business; its strengths and weaknesses, the environment it operates in, what could potentially go wrong, and what you can do to ensure your success. Doing your planning on the back of an envelope is not going to achieve this

You should realise by now that it’s essential to have a Business Plan; it could be the difference between success and that dreaded “f” word – failure! It’s all about understanding the importance of planning ahead.

Spend time putting your thoughts on paper in a structured and logical manner. It will pay you dividends, both in getting the Bank to take you seriously and securing the future of your business.

Robert Warlow
Small Business Success

For more information on how to deal with your bank and increase your chances of getting a small business loan check out Rob’s e-book ‘The Secrets of Getting Your Bank Manager to Say Yes!’ at http://smallbusinessloanhelp.co.uk.

Also subscribe to Rob’s free weekly newsletter, Small Business Success, which is packed with small business ideas and tips at http://smallbusinesssuccess.biz.

Author: Robert Warlow
Article Source: EzineArticles.com
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