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Business Plan

What is a business plan?
A business plan is an instrument used to document the intent and plans of the owner regarding every aspect of the business. The document itself can be used to communicate plans, strategies, and tactics to your managers, partners, and investors. It is also used when you are applying for business loan.

The business plan contains both strategies and tactical objectives, and it can be either formal or informal.

Business Plan = Goals + Research + Strategy

Does every business need a plan?
Absolutely. Every business needs a plan.
Developing a detailed business plan will provide you with an opportunity to shape a powerful business development strategy, whether your goal is to:
  • Get capital to start a business.
  • Get capital to finance your business.
  • Be more organized and increase your odds of success.
  • Identify the value of your business and prepare a plan to sell your business.
  • Create a plan to buy a business.
  • Create a management succession plan to facilitate your retirement.
  • Revitalize your business and identify new markets and business opportunities.
  • Reorganize to allow you more free time away from the business.
  • Build a financial plan to improve profitability.
  • Decrease you margin for error and increase profitability through rigorous management of staff and resources, as well as leveraging market conditions.
  • Clarify goals, objectives, and strategies in partnership or corporations with multiple directions.
  • Improve effectiveness and management of operations.

The first milestone of starting a business is having comprehensive prepared business plan. Having a well-prepared business plan before starting any kind of business is not a matter of choice, but necessary. Every business has to have a business plan that will be used to direct where the business is going on. At Tanzason Consulting, we understand the complicity most new and some old business owners are facing in writing comprehensive business plan or updating old once. We are here to help business owners to prepare detailed business plans that suite the needs of yourbusiness, stakeholders, and shareholders such as financial institutions.
Advantages of business plan are numerously for any business owners to ignore. Any business should have its own business plan. In other words, no matter the number of businesses you possess, each venture should have independent business plan that demonstrates the nature and the purpose of each venture. Indeed, the business with no business plan is the same as driving a car in the middle of darkness with no headlight on. Therefore, you can see that having comprehensive business plan is a critical step to undertake and it has to include all essential subtopics that facilitate in demonstrating and explaining step-by-step what to be done, when will be done, how will be done, and for what purposes. Business is not only static pages of word; but also, an ongoing business corner stone that require constant reviews in order to be up-to-date and truly to represent business owner’s current visions. If prepared and kept correctly, the business plan will offer the following advantages to the owner:
  • Holds visions together. Business plan facilitates business owners with holding their visions in orderly manner and articulates how these visions will be executed. In business arena, collection of ideas is normally useless, unless someone put those ideas together in form of business plan.
  • It facilitates in forecasting. Preparing business plan required enough research; which in turn, will facilitate to determine if a kind of business you want to start has sufficiency market accompanied with reasonable operating expenses. In the end, the aim of any business owner is to generate enough profit and not otherwise.
  • Starting capital. As part of preparing business plan, you should come-up with figures that show starting capital of your venture and how this capital is raised or financed. With this information in hand, the headache the business owner might she/he has will diminish and will provide the business owner more time in focusing on other major sections of starting or operating the business.
  • It is a business umbrella. Financial institutions like banks uses business plan as one way of evaluating someone’s seriousness of operating a business. Therefore, if you are planning to raise starting capital or to raise additional operating cash, you need to have business plan that presenting current economic situation of your venture as a prerequisite of seeking bank loan.
  • Defines your target market. Business plan facilitate to unfold all elements relating to market issues such as:
    • what is your target market
    • which location your market is located
    • how to reach them and at what marketing strategies
    • what will be future status of your business market
    • how you business brand will manage to penetrate in a the target market
    • what is the status of your business competitors
  • Defines business risks. Business plan should analyze all weaknesses and both internal and external business risks relating to your business. These risks should be compared with business strengths in order to evaluate offset technique. Normally, your business strengths should be higher enough to overcome weaknesses as one ways of having progresses in your businesses.
  • Facilitates in projections. Any business plan should posses three years projected financial statement.  In turn, these projected financial statements will be used with conjunction with actual results for conducting either monthly, quarterly, semi-annually, or annually business evaluations. This is one of crucial steps in any business operation to evaluate the actual financial position of the business and how effective plan managed to produce intended results. In case of any modifiable discrepancies, necessary adjustments should be made on your business plan. If possible, you should also clearly state why you think these new changes will have positive impact on your business.

When a business plain completed, it should be organized in the following order:

  1. Executive summary.
  2. Business description.
  3. Products and services.
  4. Industry analysis/External focus.
  5. Marketing strategy.
  6. Operations and management.
  7. Implementation plan.
  8. Financial plan.
  9. Contingency plan.