Business Plan

A business plan is a marketing tool that shows the activities that you will carry out in future for your business. These plan enables you to present to the regulatory authorities of your purpose, financiers who you want to borrow money from or the tenant who you want to rent or lease a building. You also prepare a business plan for your own use in your business.

The importance of creating a business plan is to explain and illustrate the vision you have for your business, and to persuade others to help you achieve that vision. To achieve this, your plan will show on a document that you have a firm visualization of what your business is going to be. When it is put on paper it provides a document for future reference. The plan should convince others that your business concept can be successful and that you can actualize your vision alone or as a team into a profitable entity. You should include financial statements like profit and loss account, balance sheet and a cash flow statement. In these financial statements you show your sales revenue expenses and expenses. You will need to indicate how much capital you will require to begin.

The two types of business plans are the Concept Presentation Plan, which has no financial projections or financial statements. It is used is to convince landlords and property managers that you have a good business concept and you are interested in negotiating for the lease of an available space. The other type is full financial business plan which contains financial projections or financial statements. It is prepared when you are borrowing money from financial institutions.