why you need a business plan in order to succeed.

Business Planning Newsletter Thursday 20 August 2009

In this week’s issue: Why do you need a businesses plan? Can you succeed in business without a plan? Every business undertaking involves many risks. A good business plan prepares you to tackle most of them an increase the probability of your success.

Welcome to the 8 new subscribers this week! Please pass on this Business Planning newsletter to those in your network.  To join or leave the mailing list please send an email with “Subscribe” or “Unsubscribe” on the subject line to: chichonip@yahoo.com. PRIVACY: It is my policy never to provide your email address to third parties. You’ll never get an unsolicited email from a stranger as a result of joining this list.

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

Why a business plan is essential to the success of every venture

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

Every year thousands of people venture into the business world. With many large companies having closed or downsized operations, it is difficult to find stable and well paying employment. There are hundreds of graduates currently unemployed in this country. Thousands of others have been retrenched during the economic decline that has been running for nearly a decade now. Others still are working for low salaries that will never allow them to acquire the material things they need in order to live a comfortable life and leave some wealth behind for their children.

Starting your own business is one way of putting your destiny into your own hands instead of waiting for someone else to pay you at the end of the month.

Sadly, many small businesses never grow enough to reward their owners with the financial independence they seek. If you look around, you will notice that thousands of people are running small businesses, most of them as informal traders. A few of them grow to become significant companies, but most remain small and informal, providing their owners with incomes that they can barely survive on.

Surveys show that most of these unsuccessful business owners never bothered to sit down and develop plans for their businesses. They never planned for success.

One wise man said failing to plan is planning to fail (Harvey MacKay). Embarking on a business venture without a good plan is like embarking on a journey to a place you don’t know without a map. You will likely run out of provisions and get tired before you get there. And without the map, you will not know how far you still have to go to reach your destination; and you will not even know when you get there!

A business plan is like a roadmap, directing you where you want to go in your business life. Every successful business you see today was started by a man or woman who had a plan. Some may claim that they never took the time to write down a plan, but if you really investigate you will find out that they actually thought carefully and made a plan, if not only in their mind, about what they wanted to do before starting. In other words they had a plan.

If you wish to apply for a loan from a bank, you will be asked for a business plan or a proposal. Companies that wish to raise capital from the public through the Zimbabwe Stock Exchange a required to develop a business plan, which is called a prospectus. To attract venture funding or to get a business partner interested in working with you, you need a business plan. For you to remain focused on your business goals, you need a plan.

Without a plan you can never create a real business, only a hobby maybe.

A business good business plan will cover the following essential aspects of your business:

v      The business opportunity

v      The value proposition, or what you are offering to customers in return for their money

v      The market that you are targeting, including its size and trends

v      The capital that you need to start the business, how and where you will get it

v      The business model, i.e. how you are going to make money

v      The people who are going to make the business succeed

v      The financial projections, which will include income statements, cash flow statements and balance sheets

My next article will discuss the business planning development process in detail, to enable you to create your own business plan .

Your comments and feed back are welcome. Please email them to me on chichonip@yahoo.com.

Visit my website: https://chichonip.wordpress.com for resources that will help you in planning, starting and growing your business successfully.

We provide solutions to help you start or grow your business. If you need help in developing your business plan, or would like me to work with you in making a plan that will work for your business please contact.  We have developed some books that many entrepreneurs have found useful in their businesses. The titles include:

v      Business Planning Simplified

v      A Simplified Guide to Taxes for Small Businesses and Informal Traders

v      How to set up a basic record keeping system

v      Low Cost- High Impact Marketing Strategies

These are available at Innov8 Bookshop 23 G.Silundika  (Next to wimpy)  Harare, and Munn Marketing (The Magazine Place) Jason Moyo/10th Avenue Bulawayo.  Or you can order directly from us and we can deliver if you are in Harare or send you electronic PDF copies by email.

Advertisements

2 Responses to “why you need a business plan in order to succeed.”

  1. […] why you need a business plan in order to succeed. « Phillip … […]

  2. I recently came across your blog and have been reading along. I thought I would leave my first comment. I don’t know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.

    Patricia

    http://dataentryjob-s.com

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s

%d bloggers like this: