There can be many reasons for a business plan to be prepared, some of them could be:
- Need to borrow some money. Lenders want to see the plan and will expect the plan to cover the main points.
- Grow your existing business. Establish strategy and allocate resources according to strategic priority.
- Use a plan to establish the right steps to starting a new business, including what you need to do, what resources will be required, and what you expect to happen.
- To avoid big mistakes: The last thing you want to do is work on your start-up for a year, only to realise you were doomed to fail from the start.
- To balance your emotions. At the start of a new business many of us are very exited about the new venture, or at other times, we can be overwhelmed by doubt, fear, or exhaustion. A business plan lets us step back, and take an objective look at what we are doing and why.
If a business plan is not needed, we could prepare financial elements such as:
- Cashflow forecast
- Sale and Cost Forecast
- Personal surviving budget
- Projected Profit and Loss Account