The new financial year it is a great time to put some thought into how your business is going. If you’re applying for a loan or looking for investors, a business plan shows you’re prepared and have fully vetted your business idea, says Craig Allen, a financial advisor who teaches business plan writing classes at Southern New Hampshire University.
Hence many highly successful business leaders rely heavily on their financial directors to take care of the financial details, leaving them free to get on with the business activity that makes best use of their natural skill, be it creativity, selling, service-provision, people-skills, technical skills, or whatever.
New business start-ups – especially if you are the owner or entrepreneur – present bigger planning challenges in some respects because we have no previous records to act as a guide, but in other respects they offer wonderful opportunities to create genuinely innovative and exciting founding principles – your own new business philosophy – on which your plans can be built and developed.
While software might be able to do the job for you, if you’re looking for significant funding, it’s probably useful to get some professional advice, not least in terms of strategic planning, feasibility studies, and financial projections to ensure you have a solid base for your business plan.
A business plan, as defined by Entrepreneur , is a written document describing the nature of the business, the sales and marketing strategy, and the financial background, and containing a projected profit and loss statement.” However, your business plan can serve several different purposes.