Business Plan Preparation (Made Simple)

What is a Business Plan?   

It is a document prepared by an entrepreneur in preparation for starting or expanding a business.  It outlines details of the business activities.  Starting of a new business is like taking a journey into the unknown.  Therefore, details written down about the business will act as a route map or guide for the journey.

Business plans assist one in: -

  • Thinking about the business as a whole
  • Pointing at needs that may be overlooked
  • Giving a framework for decision making
  • Providing a yardstick against which actual future performance of the business can be measured.
  • Spotting problems and finding solutions before hand
  • Setting reasonable objectives and figuring out how to achieve them
  • Communicating business ideas to relevant parties
When to Prepare a Business Plan

You should prepare a business plan when: -

  1. Starting a new business
  2. Planning for expansion of a business
  3. Applying for a loan

Parts of a Business Plan
The following are the major parts of a business plan: -

  • Executive summary
  • Business background and objectives
  • Marketing plan
  • Production plan
  • Financial plan
  • Organization and management
  • Action plan for critical risks and problems
  • Conclusions on the business plan
  • Appendices

Business owners should as much as possible prepare the first drafts, which shows their vision and understanding of their business then seek assistance from professionals in developing the technical areas.

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