What should a business plan do?
Basically, it should serve as an operating tool, outlining the goals for the business, identifying areas of strength and weakness, spotting potential opportunities and foreseeing possible problems. When complete, the business plan should prescribe the steps you will take to manage the business and realistically describe your ability to profitably operate the business.
A business plan should describe the following four things:
- The business: Specify the concept. (What do you want your business to do?)
- The marketing plan: Outline the strategy. (What is the environment in which your business will operate and grow? How will your business fit into that environment?)
- The operating/management plan: Review the tactics. (What are the guidelines for operating your company?) and
- The financial plan: Pinpoint the required funding resources. (What funding will your business need? What are the sources of funding for start-up and/or growth?).
