How can a business plan help?

Prepare a business plan

 

There are many other benefits to creating and managing a realistic business plan – even if you just use it in-house. It can:

·                     help you spot potential pitfalls before they happen
·                     structure the financial side of your business efficiently
·                     focus your development efforts
·                     work as a measure of your success 

 

Who wants to see it?

 

The following people or institutions may request to see your business plan at some stage:

·                     banks
·                     external investors – whether this is a friend, a venture capitalist firm or  a business angel
·                     grant providers
·                     anyone interested in buying your business

·                     potential partners

 

You should also bear in mind that a business plan is a document that will need updating and changing as your business grows. Regardless of whether you intend to use your plan internally, or as a document for external people, it should still take an objective and honest look at your business. Failing to do this could mean that you and others have unrealistic expectations of what can be achieved and when.

By Martin Huckle