What is a Good Business Plan?
In today’s business world, business plans are more important than ever. In fact, they’re more important now than they’ve ever been in the history of business. A business plan is essentially a formal written document outlining the plans of a business, with the primary goals of that business and the shortest time-frame to achieve those goals stated in the plan. A business plan can be very useful to business owners as it provides them with an outline of future goals and plans, as well as provide them with a road map to achieving those goals.
Most business plans today take the form of either an S.C. or an I.V. company. While the two forms are similar in nature, they differ slightly in some important details. This article will focus on the differences between the two forms and discuss why more businesses should use the lean startup model instead of the more traditional business plans.
Lean Startup vs. Traditional Business Plans Since the onset of the lean manufacturing method of manufacturing, there have been many changes in the way business plans are written and presented. Although lean manufacturing started out as just a concept for large manufacturing corporations, it has since extended to small and medium sized businesses all across the country. The concept of a lean startup is the same, however the implementation differs. Traditional business plans outline business goals, a description of how the business will operate, marketing strategies, management information, financial statements, and other information required to launch a business. The purpose of this information is to present a full overview of the business, including both the short and long-term business plans necessary to become successful.
Lean Startup vs. Traditional Business Plans Because a traditional business plan focuses on a single business idea or concept, it usually doesn’t take into account the unique aspects of a business startup. In order to succeed with a new business venture, potential investors must be made aware of the fact that there may be risk involved with starting the business. A traditional business plan typically showcases business growth, goals, a description of the management team, marketing strategies, and financial statements at a simplified level. Investors must be told what percentage of ownership is offered to investors, how the business will generate revenues, what expenses will be incurred, and a description of how profits will be determined. While it can be helpful to provide financial statements to potential investors in a traditional business plan, they must be presented in a format that make them easy to understand, as well as entertaining to an interested reader.
Most people looking for a business plan template believe that a business plan template provides them with everything they need. However, this is not always true. Before purchasing a business plan template, investors must ask themselves if they need to customize any aspects of the plan, such as incorporating a new owner, funding a capital campaign, or changing goals if they are ever under new management. Not only must business plans look good, they must be well-organized and clearly laid out.
While business plans can be designed to be highly comprehensive, they should only include necessary information and never include areas that will not be required upon start-up. This is the case even for traditional business plans. Entrepreneurs must also remember that they should be designed to be client driven rather than managing their own business. In most cases, entrepreneurs require more than a standard structure to properly conduct their business. In order to create business plans that will be successful, they will need to keep adding details as their business takes shape and continue to grow.
If investors do not feel comfortable with creating business plans on their own, they should consider hiring an experienced consultant. While there are many good business plan templates available online, it is also possible to come up with unique business plans. If entrepreneurs are serious about launching new businesses, they should not ignore this option, as it will help them achieve their goals much faster. Furthermore, hiring a consultant will help them outline their goals and provide additional details regarding their startup businesses. Although they may cost some money, this type of professional advice will be invaluable.
Regardless of what business plans they select, entrepreneurs should remember that their plans should be client driven and clearly outline the purpose of their creation as well as the steps that they plan to take in order to complete the task. In addition, they should be carefully detailed and should include the key factors to their success such as market demand, competition and other factors important to the area in which they plan to operate. It is a good idea to outline how the services and products that they plan to offer will meet the needs of potential clients. All of these things should be included in a good business plan, as well as the future plan and goals for the company.