Putting these plans in writing can hopefully start a healthy business planning process that your business revisits on a regular basis, updates, and revises.If outside investment or loans are sought, whether from venture capitalists or bankers or others, a business plan is essential.It's one of the first documents that a loan officer will want to see.
In fact, more important to your business's future than having a 30-page, coil-bound plan to distribute is the business planning process that you undertake on a regular basis to hopefully keep your ship headed in the right direction without losing sight of your long-term destination."In my company, we've been working on the same plan for more than 20 years—we review it every month and revise it every year.
We've printed it out a dozen times and shined and polished it.
A great business plan is a living, breathing blueprint for your business that can help you navigate and manage your company while also helping potential investors, partners, lenders, and others understand your business strategy and your chances at success.
A business plan is never quite finished because you're always revising it, reviewing it, and building upon it.
It's a way that different people can work together on a team," Berry says. Humans like to have a way to measure themselves and track their own progress toward goals rather than being completely subject to someone's guess later as to how they've done."There are scores of websites these days on the Internet that offer to sell business plans for $20 or more, designed to let you enter your company name and specifics and generate a plan.
These are about as valuable as the paper they're printed on, says Berry.
Collateral includes funds to support loan payments, interest expenses, and debt repayment, Berry says.
Banks aren't allowed to make speculative loans, so you need to include information in your plan to make the banker feel safe.
The reason is that each business is unique and, therefore, each business plan should be a unique document to be truly worthwhile to the business.
A business owner should also be fully invested and fully aware of every aspect of the plan.