what is the characteristics of a sound business plan

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Sound Business Plan

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Module 21 Characteristics of a Sound Business Plan

Module Introduction

Not all plans are created equal. The same is true with business plans. Though many may think of a great business idea, they more or less cannot translate these ideas into plans. Even if they were able to develop a business plan, there is no guarantee that it is a good plan to start with. This module will walk you through the various characteristics and qualities expected from a sound business plan that is practical, implementable and can be made real by its proponents.

Module Objectives

At the end of this module, you should be able to:

• Determine the characteristics of a good business plan; and
• Enumerate the qualities of a good business plan; and
• Discuss the qualities of a good business plan.

Discussion Proper

Business plans prepared and developed to establish a new business or expand an existing business needs to possess certain elements that could make it a good plan. You should be able to spot the characteristics of a good business plan and be able to correct and improved the flawed ones if you intend to proceed with it in the future.

Here are the characteristics that define a good business plan:

Characteristics of a Good Business Plan

Planning is an important managerial function that usually precedes other functions. Obviously, without setting the goals to be reached and the lines of actions to be followed, there is nothing to organize, to direct, or to control in the enterprise. But this should not lead us to think that planning is isolated from other managerial functions.

2. Continuity

Planning is a continuous and never ending activity of a manager to keep the enterprise as a going concern. One plan begets another plan to be followed by a series of other plans in quick succession. Actually, a hierarchy of plans operates in the enterprise at any time. Planning gets used up where tomorrow becomes today and calls for further

planning day in and day out. Again, the incessant changes make re-planning a continuous necessity.

3. Flexibility

Planning leads to the adoption of a specific course of action and the rejection of other possibilities. This confinement to one course takes away flexibility. But if future and assumptions upon which planning is based prove wrong, the course of action is to be modified for avoiding any deadlock. Accordingly, when the future cannot be molded to conform to the course of action, the flexibility is to be ingrained in planning by way of adapting the course of action to the demands of current situations.

4. Consistency

Planning is made by different managers at different times. Maintenance of consistency or the unity of planning is one of its essential requirements. Objectives provide the common focus for unifying managerial action in planning. Moreover, policies and procedures introduce a consistency of executive behavior and action in matters of planning.

5. Precision

Planning must be precise with respect to its meaning, scope and nature. As guides to action, planning is to be framed in intelligible and meaningful terms by way of pinpointing the expected results. Planning must be realistic in scope rather than being dreams indicating pious desires. As planning errors are far more serious and cannot be offset by effective organizing or controlling, the accuracy and precision is of outmost importance.

6. Pervasiveness

Planning is a pervasive activity covering the entire enterprise and every level of management. Planning is not the exclusive responsibility of top management only. But it extends to middle and lower managements as well. Although top managers are mostly preoccupied with planning because of the wider scope of operational and decision making authority, planning is of equal importance to every manager.

Moreover, presented below are some of the qualities of a good business plan.

Qualities of a Sound Business Plan

1. It fits the business need

Business plans need to have a specific set of objectives which they aim to achieve. Did you develop the business plan to establish you own business? Did you conceptualize

You have to ask yourself, as you evaluate a business plan: how will we know later if we followed the plan? How will we track actual results and compare them against the plan? How will we know if we are on plan or not?

While “blue-sky” strategy is great (or might be, maybe), good planning depends more on what to accomplish, when to do things, who will do it, and how much is needed to implement it.

4. It clearly defines responsibilities for implementation

You have to be able to identify a single person who will be responsible for every significant task and function. A task that doesn’t have an owner isn’t likely to be implemented. You can go through a business plan and look to see whether or not you can recognize a specific person responsible for implementation at every point.

5. It clearly identifies assumptions

This is very important because business plans are often wrong. They were done by humans who are guessing the future, and humans tend to guess wrong (if not careful about their assumptions). So business plans must clearly show assumptions up front because changed assumptions ought to lead to revised plans. You identify assumptions and keep them visible during the following planning process.

6. It is communicated to the people who have to run it

At this point we leave the discussion of the plan itself, as if it were a stand-alone entity, and get into how the plan is managed. The first five points discussed here are about the business plan. You can deal with them as the plan develops. This and the following two (qualities # 7 and 8) are about the management of the plan.

A good plan is communicated. Up above the management, where we suggest that the qualities of writing and editing are not essential for all plans and down below I where cryptic bullet points that only the team understands can do its job. If only the team understands them, then it can still be a good plan; but it has to be communicated to that team beforehand.

We are judging the plan by the business improvements it causes; in some sense, by the implementation it causes. So people in charge have to know and understand the plan. Plans in drawers, or locked on a single computer, only work when it’s a one-person organization and nobody else has to know the plan.

7. It gets people committed

In this quality of a good plan, it is about the process surrounding the plan, more than the plan itself. The plan has to have the specifics as stated in quality point # 3 and

responsibilities as explained in quality point # 4, but the management has to take them to the team and get the team committed.

For the one-person business like in the case of sole proprietorship, that’s easier, but still important.

8. It is kept alive by follow up and planning process

You have to keep the plan, follow it up, review it from time to time and adjust to “where the wind blows” towards the advantage of the business. There is no such thing as infallible plan or static plan. All plans are susceptible to errors and outside forces which you do not have control of. You should be able to quickly “change the gear”” when challenges and elements other than what you have anticipated have shown along the way.

Finally, no business plan is good if it’s static and inflexible. Planning isn’t about predicting the future once a year and then following that predicted future no matter what. Planning is steering and management. It takes a process of regular review and course correction.

Self-Assessment Questions # 1

• What are the characteristics of a good business plan? (2 points each)

Self-Assessment Questions # 2

• Enumerate the qualities of a good business plan (2 points each)

Self-Assessment Questions # 3

• Discuss at least 4 qualities of a good business plan (5 points each)

=================================================================

Answer to Self-Assessment Questions # 1

• The characteristics of a good business plan include: primacy, continuity, flexibility, consistency, precision, and pervasiveness.

Answer to Self-Assessment Questions # 2

• The qualities of a sound business plan include: it fits the business need; it is realistic and can be implemented; It is specific and results can be tracked against the plan; it

7. It gets people committed. In this quality of a good plan, it is about the process surrounding the plan, more than the plan itself. The plan has to have the specifics as stated in quality point # 3 and responsibilities as explained in quality point # 4, but the management has to take them to the team and get the team committed.

8. It is kept alive by follow up and planning process. You have to keep the plan, follow it up, review it from time to time and adjust to “where the wind blows” towards the advantage of the business. There is no such thing as infallible plan or static plan. All plans are susceptible to errors and outside forces which you do not have control of. You should be able to quickly “change the gear”” when challenges and elements other than what you have anticipated have shown along the way.

RUBRIC FOR SCORING ESSAY

Areas 5 4 3 2 1 Content Explains fully his side and presents a clear and compelling stand on his answer

Presents a strong case for his answer yet at some point lost its strength by having little supporting contents

Presents an answer that allows the reader to be reflective on his stand yet there is little to no supporting facts presented

Presents some contents that show his side in a given case however no supporting facts was presented

Present his answer in purely opinion form.

Thought Development

There is a very fluid flow of thoughts and follows a rigorous format of development, from personal perspective to evidence-based arguments

Discussion is coherent to some extent yet there were claims or assertions that were not supported by hard evidence

Discussion has weight yet some thoughts are contradicting and sometimes going out of the context by which the answer should have revolved

Discussion presents key assertion of facts however not supported with solid argument

There is a very little coherence in the ideas are presented to answer the questions

Grammar Followed the rules of grammar 100%

Most of the rules of grammar were followed save for some minor errors

Majority of the rules of grammar were followed but some errors were glaring enough to go unnoticed

Some of the rules of grammar were followed but there were many errors committed

Even the basics of grammar were not followed yet there is an effort exerted in answering in English

Cerkas, O. (2017, June 7). 8 factors that make a good business plan. timberry.bplans. Retrieved from timberry.bplans/some-key-questions-on-business-plans/

Smriti, C. (2020). 6 characteristics of a sound financial plan. articlelibrary. Retrieved from yourarticlelibrary/planning/6-characteristics-of-a-sound-financial-plan-public- deposits/26188#:~:text=Some%20of%20the%20important%20characteristics,success%20of% any%20business%20enterprise.

Kuldeep, H. (2020) What are the essential characteristics of a sound plan. preservearticles. Retrieved from preservearticles/business/what-are-the-essential-characteristics- of-a-sound-plan/

Tanuja, A. (2020). 10 important features of a sound plan. businessmanagementideas. Retrieved from businessmanagementideas/management/planning-management/10- important-features-of-a-sound-plan/

Shaw, J. (2017, April 25). Essential elements of an effective business plan. smallbusinessforum. Retrieved from smallbusinessforum/essential-elements-of-an-effective-business-plan- 20388d872f

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Six Essential Components Of A Sound Business Plan

Rhett Buttle is the founder of Public Private Strategies, Executive Director of the Small Business Roundtable, Founder of the NextGen Chamber of Commerce, a Senior Fellow at The Aspen Institute, and a contributor for Forbes. 

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10 Qualities of a Good Business Plan Explained

9 min. read

Updated August 1, 2024

What makes a good business plan? 

Results. 

Goals met, milestones achieved, objectives accomplished. 

Forget the old-fashioned thinking of evaluating plans like a college term paper. You don’t get points for writing style, formatting, or completeness. 

A good business plan shows you can get results. But what does that look like in practice? What should you focus on when writing? 

Well, I’ve narrowed it down to 10 key qualities. Qualities I’ve found make for the best business plans and, ultimately, more successful businesses.

• 1. It fits the business need

You have to consider why you need a business plan in the first place. Business plans aren’t one-size-fits-all . Form follows function. 

Not all business plans have to be pretty

Most business plans exist to help run the company , not to be presented to outsiders. They don’t have to be polished and formal; they just need to work for you and be easy to review, revise, and run your business. 

Write it for your audience

A business plan being shown to outside investors does, in fact, have to look good, read well, and be presentation-worthy. It needs good summaries and descriptions to validate the idea, the team, the market, and other key elements. It should also describe how you intend to exit in the future. 

The business plan to support a loan application also needs summaries and descriptions. They need to reassure a lender about risk, usually with assets, often with the owner’s personal financial statements, and past performance on credit ratings and debt repayment. 

2. It’s realistic and can be implemented

The second measure of a good or bad business plan is realism. You don’t get points for ideas that can’t be implemented. Setting unrealistic and unachievable goals is a waste of time.  

For example, a brilliantly written, beautifully formatted, and excellently researched business plan for a product that can’t be built is not a good business plan. A plan that requires millions of dollars of investment but lacks a management team to get that investment is not a good plan. 

A plan that ignores a fatal flaw is not a good plan. Make sure your goals are achievable.

For example, if you share a financial forecast , is it realistic? Based on current revenue, can you realistically achieve your goals? If you’ve brought in $200,000 annually in revenue for the last few years, don’t expect to jump to $400,000 in the next quarter. 

Make a plan for increasing revenue—but in increments that make sense and are achievable.  Look at changes in revenue drivers, such as traffic, web views, sales per store, etc. Get into the details. 

Link your projected increases to actions and events, such as milestones, promotions, a new product launch, or a new location. Think of the power of cause and effect. Increases are more real when they result from activities and events, not just out of the blue. 

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3. It’s specific and measurable

Every business plan should include tasks, deadlines, dates, forecasts, budgets, and metrics. These will make your plan measurable .

Ask yourself: 

• How will we know if we followed the plan?
• How will we track actual results and compare them against the plan? 
• How will we know if we are on track or not?

While high-end strategy can be fun to develop, good planning depends more on what, when, who, and how much. These are the concrete specifics that offer visibility into the real progress toward your goals. 

• 4. It clearly defines responsibilities for implementation

You have to be able to identify a single person who will be responsible for every significant task and function. A task that doesn’t have an owner isn’t likely to be implemented. 

You should be able to review a business plan and recognize who is responsible for implementation at every point. If you don’t, you have a gap and need to fill it.

Avoid sharing responsibilities between different people or groups because this reduces accountability. Match every important task or function with one person in charge and accountable. 

Again, if you don’t have that person right now, don’t just ignore it. Mention in your plan that it’s a known gap, when you intend to address it, and if you have anyone in mind.

• 5. It clearly identifies assumptions

Business plans are always wrong. They’re written by humans who are making guesses about the future. Humans tend to guess wrong. 

So, your business plan must clearly address assumptions upfront. 

Did you assume the company will increase productivity by 10% this year because it did the last few years? Do you assume the market won’t change much? No new competitors? Do you assume that your technology will reduce your direct costs? Do you assume growth in your social media impact? 

Share your thoughts on why this is achievable based on past factors, but also clarify that you’re guessing. 

You may need to update or refine these areas of your plan after a few months. By flagging them as assumptions from the start, you won’t be surprised when you over or underperform and are prepared to revisit and adjust. 

• 6. It defines strategy and tactics

In the real world, a small business can’t do everything, so it has to do the right things. You can’t please everybody, so you need to please the right people. That is the essence of strategy. 

A strategy defines what problem you solve, the solution you offer, the relevant target market, and why you are the one to do it. 

How you treat strategy in a business plan depends on the nature and objective of the plan itself. 

Strategy can be as simple as a bulleted list taking up a page or two of a lean business plan. It could also be one or more slides in a pitch deck or a more detailed formal chapter of a traditional plan. 

The plan defines the strategy so you can refer back to it as often as necessary. It might be there for management value or to explain to outsiders. And who will be using or looking at it will dictate how it needs to be presented. 

Get into the details

Strategy is useless without the key tactics . 

Tactics might be pricing, distribution, marketing, financial plans, sales plans, etc. Make sure the tactics you choose are directly in service of executing your strategic goal. 

You should be able to explain how every action you take relates to your overall business strategy. And don’t leave tactics without developing concrete specifics, milestones, budgets, tasks, responsibility assignments, tracking, and how you’ll follow up. 

• 7. It incorporates a monthly review schedule

Good business plans include timing and schedules for regular updates. You anticipate the need for a regular monthly review . 

You know your plan is not perfect and needs to be revised to accommodate ongoing results. Real business plans need to be kept fresh. 

• 8. It includes essential numbers

Sure, there is a place for a simpler one-page business plan and other shorter plan summaries. Investors, banks, and strategic partners might want that kind of simple summary to quickly understand your business. 

But real business runs on cash, and keeping your business in cash requires thorough financial planning. 

You need budgets and tracking. 

So a real business plan includes essential financial projections , including sales, costs of sales, expenses, profits, and cash flow.  

You track sales, costs, and expenses to monitor related budgets and progress toward goals. You also track cash flow factors such as accounts receivable and inventory to look for indications of change that might require management actions. 

Remember that management is about constant course corrections. This is why you include a regular monthly review of the plan against your actual results. 

9. It’s clear and simple

Keep it simple. 

Most businesses need and will use a lean business plan , which can be just a few pages of bullet point lists (strategy, tactics, milestones, etc.) and tables (sales, costs, expenses, profits, cash flow). 

Don’t use a business plan to show off. 

A business plan is about the business, not the science. Avoid industry jargon and long technical explanations. Investors and bankers will have experts review your details, but they don’t expect to find them all in the plan document.

Related Reading: How long should your business plan be?

• 10. Easy to communicate with the right people

Again, form follows function. 

For example, an internal plan to manage your business is not lengthy and formal. Instead, it links key elements together to make them easy for team members to access and work on. 

If you do have to present the plan, make the text business-appropriate.

Take the time and trouble to avoid typos and spelling errors. Use outlines and summaries to make the more important points easy to find. Make font sizes clean and large enough for older readers. Have somebody else read it before you finish. 

This makes it professional and shows respect for the reader and the business situation. It should also be presented in a format that lends itself to sharing, like a website or PDF document. 

Security is important too. Is the plan safely locked away from the prying eyes of outsiders? Most business plans live online or on local networks where team members can access and manage.  Some are online, and outsiders can see them. In both cases, use security safeguards. 

Ongoing planning process: it’s about the management it causes

U.S. president and military strategist Dwight D. Eisenhower is often quoted as saying: 

The plan is useless, but planning is essential .

The key point is that no clear criteria exists to tell you if a business plan is good or bad. 

What makes a business plan useful (good) is the management that comes out of it. The regular reviews and revisions that help you stay on track. That’s good planning , as opposed to just a good plan.

To start your own planning on the right foot, download our free business plan template . It provides the structure and guidance needed to create a good business plan and can be adapted to fit your meeds.

Tim Berry is the founder and chairman of Palo Alto Software , a co-founder of Borland International, and a recognized expert in business planning. He has an MBA from Stanford and degrees with honors from the University of Oregon and the University of Notre Dame. Today, Tim dedicates most of his time to blogging, teaching and evangelizing for business planning.

Table of Contents

• 2. It’s realistic and can be implemented
• 3. It’s specific and measurable
• 9. It’s clear and simple
• Ongoing planning process: it’s about the management it causes

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Why is A Sound Business Plan Important?

Every business can benefit from having a sound business plan, for startup companies, having a sound business plan is an absolute necessity. Investors and potential business partners will want to see a solid business plan in place before considering, let alone committing to a financing investment. The business plan should demonstrate the vision of the startup and persuade investors to commit financing to make that dream a reality. Entrepreneurs must thoroughly and persuasively draft a business plan. Working with a Silicon Valley business law firm greatly increases the validity of the business plan and their corporate attorneys can help the entrepreneur understand the different factors that that must come together to form the business plan.

Drafting a business plan can be a daunting task for some entrepreneurs. The notion of essentially reducing the vision for a company, not even in existence, to words on a paper is difficult to comprehend. Many, many variables present themselves when a business is in the startup phase: markets, price points, the cost of raw materials, evolving technology, and escalating labor costs are all relatively unknowable when drafting a business plan. The business plan must successfully make those variables as concrete or as certain as possible.

The contents of a business plan are fairly uniform. Bearing in mind the audience of the business plan, the entrepreneur must lay out in great detail what the business will do. The business plan should expound upon the notion that this particular good or service is a game changer. In other words, the business plan must prove to the reader that the good or service offered is innovative, revolutionary, or improves upon an existing good or service. The business plan should also spell out plans for growth and development, as well as the customer base or markets which will buy the good or service offered by the startup. The business plan should include the structure of the organization, as well as plans to formalize such as incorporation or perhaps an intention to grow from a closely-held corporation to a publicly traded corporation.

The potential investors reading the business plan will be skeptical. They will demand evidence of the claims made and, most significantly, potential investors will want to know when they can get their money back. The business plan must convince the potential investors that the idea is profitable and give a timeline, based on solid market research, of when the company expects to turn a profit. Therefore, the business plan should be drafted with an eye toward educating the reader on existing markets, the potential for expansion, the limitation on growth potential, and market demand. Also, the entrepreneur should identify the competition, if any, for market share, and prove to the potential investors that the good or service will thrive in a heavily competitive market. The entrepreneur must also include empirical evidence based on the solid market research in the business plan. Empirical evidence will convince a potential investor the startup is worth the financial risk.

In addition, the business plan should include a discussion about the people who run the company.  Investors, as well as potential executive or director level employees, need to know who is at the top, their pedigrees, and their previous business successes. The entrepreneur can use this section of the business plan to convince the reader that they are the right person, at the right time, to lead this new company. The reader should be left with no question that the current management structure can appropriately manage the company and help it grow.

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Quick glossary.

Creating a Sound Business Plan: All you Need to Know

Some business gurus will tell you that without a good business plan, your chances of success are minimal at best, and with that in mind, it is obviously essential that you have a solid plan of action that outlines how you will manage to carve out your share of the market.

Giving your Enterprise Direction

One purpose of creating a business plan is to have a firm direction, to know where you are going, with information about marketing strategies and long-term forecasts, and while you are able to divert from the plan, should circumstances change, once the plan is set, it gives you, the business owner, firm direction.

Market Research 

Whatever the products or services you choose, it is vital that you do some thorough market research, as you need to be certain that there is a demand, and that the future of your chosen industry is promising. It is very easy to adopt a positive approach, as you do want your business succeed, so it is a good idea to ask other people to play devil’s advocate and try to find weaknesses in your marketing strategies.

Executive Summary 

This short section is found at the front of the plan, which outlines what the business is about and also gives a detailed description of the organization. This could be a few paragraphs that is an overview of the organisation and summarizes the overall scope of the business. If your business has a concept then this should be described in this section

Organization Flowchart 

It is important to outline the structure of the company, showing who is running the business, along with details of management and other potential roles within the organisation. This might include sales & marketing, manufacturing, logistics and customer support, and any other departments, and by creating the flowchart, you are very aware of what the business needs in order to help be successful.

Marketing & Sales

You could enroll an Adwords agency in Bristol , which would provide you with qualified leads and an extra source of revenue, and your digital marketing partner would compile a comprehensive plan that outlines the various strategies you will use to create a revenue. Your marketing plan would contain information about how you intend to enter specific markets, plus details of contractual liabilities. You might, for example, be planning to present your products at trade shows and the details would be included in your marketing plan.

Start-Up & Capital

Your business plan should include a section about initial funding , with a detailed account of items purchased to set up the business, along with running costs and a list of assets. If you have made acquisitions for the business, they would be listed, and in another column, leasing and rental costs, plus a document that details the current and projected running costs. Again, this would be another area of interest to potential investors, who would like to know where the investment capital is used.

Profit Forecasts

This section would forecast your expected gross revenue, along with the predicted profit, for at least the first 5 years and maybe up to 10 years. This section would be particularly interesting for potential investors, who would like some idea of the expected revenues over a period of years. Doing this would enable you get a realistic idea of how well your business will do, and as time passes, you can use these forecasts as a benchmark, making sure that you are on track.

Flexibility

As every business is dynamic and situations can quickly change, your business plan needs to be flexible, and should you feel the need to make changes, you should consult with your managers and see if you can adapt your plan to better meet the company’s needs.

Once you feel your business plan is complete, you should then hand it to at least one business expert and ask them to look the plan over, specifically looking for weaknesses or potential issues. More often than not, they will find things and you and your team need to review these areas, looking to make improvements, and once this is done, your plan should be something you can refer to at every step of the process.

In the event that you are looking for investors, your business plan would be critical, and a potential investor might base their decision solely on the merits of the plan, and you should be able to answer any questions the investor might have. If you are looking for funding, it is a good idea to have some professional help with your business plan, as this will ensure that your concept is clearly represented, and hopefully, you will receive the investment and go on to make a success of your business over the short, medium and long term. Planning is always the key area, with careful planning you should sail through any meeting.

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9 Steps in Creating a Sound Business Company Plan For 2022

Planning will always be an invaluable step to starting the right way with any business endeavour. Any preparation and planning before starting can lead to a smoother launch with fewer hiccups along the way.

A business requires so many elements to design and operate. With a well-written business plan in 2022, organization, marketing, funding, and production steps can all be streamlined for the most optimum performance.

A sound business plan may seem like an enormous task, and it definitely is. However, there are several tools and steps that can be used to help you map out an ideal plan for your business. Let’s look at the nine key steps in forming a detailed business plan and the components that need to be included to take you from an elevator pitch through every detail.  

Executive Summary

The executive summary can be one of the most critical steps. Succinctly summarizing a business proposal can go so far in landing a business opportunity. It’s an introduction, and as with any introduction, making a good first impression is incredibly important. It should include a well-formed mission statement that states a brief collection of your goals, values, the products, or services applicable, and general information about your business. Locations and names should be approached here too. All the pertinent information about who, what, and why. This is a great way to start. 

Company Description

What do you plan to do? What does your company offer? Detail what sets your business apart and the appeal of your existing business. This is the section in which to describe all of your goals and aspirations with the company. Both short-term and long-term goals should be explicitly discussed. Depending on the business, it can be good to split these into goals for an initial preparation, launch window, or first days of operation in the three to the six-month range, as well as a longer-term description of the coming few years.

Market Research and Target Audience

Any business needs to know its target audience. Communicating this understanding in a business plan is very valuable. Take the necessary time to understand your target audiences and build a general understanding of the market you will be competing in. This can include a lot of  market research on areas, demographics, and even timing or social contexts. Knowing who wants what you are offering and understanding how to best compete in providing it is crucial to a business plan.

Product Or Services

What do you offer and why? Who wants what you are providing, and how can you provide it in a way that fills a gap in the market? How does your business model answer questions or solve problems in existing fields? All of these need to be carefully considered and outlined. Understanding your competitors is key here as well. 

Management Structure

How will your business be run? Who has the final say in business decisions? Outlining a hierarchy of management and operation tasks is good to show an early understanding of a business plan. The ins and outs of operation are good to understand in the planning phase. 

Marketing Plans

Now that you have shown an understanding of your services, goals, and target markets, how will you get your business out there to compete? Marketing and promotion are vital elements to any business, and this should be designed as early as possible. Hire a digital marketing agency , that will formulate a marketing plan according to your business needs, combining social media, paid advertisements, email marketing, SEO etc. for greater results.

Financial Breakdown

What kind of profitability do you project and why? Breaking down detailed expense and budget projections is necessary to demonstrate a business’s viability. Any current financial performance should be highlighted, and future projections should be accompanied by data that supports them. Keeping great records is so imperative to have a sound financial understanding in the planning phase. It is very worth investing in accounting and  bookkeeping services  to make sure all these projections are as accurate as possible.  

Funding Details

What kind of money do you need? What will you need financially to succeed over the next five years? Carefully outline what you will require to meet the financial profitability projections you have made. 

Credentials, Permits, And Supports

It is good to include an appendix containing all necessary permits, the credentials of those in power, and any support or expressed interests. This can be important if you have government support for a proposal or need certain permits or approvals to get your business launched.

No matter what your business is, it is important to understand the goals of a business plan when formulating one. Business plans can have diverse goals, and knowing what your goal is will help you approach the planning process. Are you trying to obtain funding? Is this plan more about being a roadmap for launching over the coming months? Are you looking for partners or support? The better you can understand the purposes and desired results of a business plan, the better you can prepare one.

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