Written description of your business’s prospects and anticipated prosperity for future is what we call a Business Plan. It’s just a document telling you what, how and when you intend upon your business dealings. The abilities and resources of today might pave way to future larger resources and abilities coupled with greater profitability and assets (say about a decade or two). Just the outline of your anticipated road makes you the business plan.
Starting as a lean initiative has its advantages but every success story has a roadmap traversed; and that is where your sine-qua-non for Business Plan drops in.
Prime Components:
- Understanding the components of a business plan
- Short term and long term business prospects both needed to be taken care of; wherein may a case have cited examples of a short term normal profit resulting in long term supernormal profit or even close to monopolistic power in markets.
- Growth of your business through optimal allocation of your available resources, the marginal productivity should be prime concern.
- If you are unable to accumulate sufficient capital required for your business sustained growth, do attract investors
- Gain a broader and considerable knowledge of market factors.
- Strategies and objectives should be applied in order to put your business on its path of success; you should be more acceptable to new ideas and strategies that haven’t been yet intervened.
Design of a Business Plan:
- Executive Summary- Outline of the business.
- Business description- The purpose and aim at which services and products your business is concerned with are the primary things to be served.
- Secondly, your strategies and plans have to precisely calculate and then only you might risk their implementation.
- Financial factors- market inflation, demand and supply, govt. intervention, five year plans all solely contribute to the financial factors and their determinants.
- Operation and management planning- These are designed to care about the logistics that the particular business aims to do with capital, revenue, wages, rent and several factors.
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