The business plan is one of the most critical business documents produced from the brain and pen of an entrepreneur. But, when we see them as a document the real worth from an entrepreneurial perspective is dramatically reduced. It is better to look at it as a business planning process.
Before several weeks, I worked on a business plan for a new startup venture that I plan to start this summer. Working on that document lead me to walk in every aspect of that business in the future. After finishing the process I feel more prepared to start that business, and it gives me high self-confidence for the future.
Here I want to extract seven different meaning of a business plan that you can incorporate into your business planning process where the result is such a document.
1. Business Plan as a Means for Financing Business Startups
It can be used for a business plan contest or acquiring startup or development financial from different institutions as banks or governmental developing programs. Entrepreneurs with ideas but without finances cannot have a business.
2. Business Plan as Blueprints for Entrepreneurial Success
It can be as blueprints that will lead you to the path of success. These are simple business plans as to-do lists for the future. Each planning process must result in a detailed to-do list for you that you will need to finish in the future.
3. Business Plan as a Roadmap for Future Business Activities
It will give the full roadmap in which an entrepreneur should drive to get what he or she wants. If you know the path, it will be easier to go through that way and will reach faster the destination.
4. Business Plan as a Set of Business Ideas
Sometimes it can be used as a place where an entrepreneur makes notes about their ideas. Entrepreneurs are people full of ideas, but they lack finances for their ideas. These ideas can be ideas for improvement, development, growth…
5. Business Plan as a Means for Describing Business Ideas
Sometimes it can be used as a place where different entrepreneurial ideas will be described as a list of tasks or future activities for the realization of ideas. Businesses are built upon ideas and better ideas that are systematically implemented will lead to business success.
6. Business Plan as a Financial Guide for the Business
It can be used as a financial guide for spending in the future of business operations. It will tell you how much you can and spend for what. What will be cash flow, income, sales, profit and loose…?
7. Business Plan as a Mind Regulator
In the last two weeks, I feel this on my skin. As I start to write this document for the new startup company and look at different future business aspects, it changed my thinking when I place all numbers on the paper. What I think at the start of the planning process that can be real, the numbers tell me that I was wrong and must go back and change some of my assumptions and forecasts.