The Business Plan - Advantages of having one

The Business Plan - Advantages of having one

Starting out Entrepreneurs often find themselves in a situation asking “What is a Business Plan?” and “Do I need a Business Plan?”

A business plan is a formal document that shows the proactive synergy from HR, Marketing, Sales, Finance, Accounting, Economics, Management, and Sustainability - perspectives of the future enterprise, it is a guide on how the business is operating and should be operated; it provides a sense of purpose i.e. the reason for being in business, and it should be continuously updated as the Organization grows,

So to answer the question above – Yes you do need a Business Plan – because honestly how would know if you have achieved something that you as an Entrepreneur have achieved something which is unbeknownst to you?

So the Advantages of the Business Plan Are;

1.      Provides you will how much it cost you to start up the Business, and the amount that you would borrow.

2.      Business plan is valuable when also approaching Financial Institutions and/or Investors for Capital – they would need to look at your Business Plan before making the decision to invest.

3.      Helps the Entrepreneur to make an ROI (Return on Investment) – because they would know what needs to be done and what must be done - Proactiveness.

4.       As an Entrepreneur, you have planned for problems and the calculated risks that are associated with a business – so if they do arise you will know the course of action that is required to be taken.

5.      It provides a calculate approximately of the Entrepreneur’s product and/or service Targetable Market and the current and the potential size of the Market.

6.      The Organization’s mission, vision are defined – the proactive strategies that need to be implemented to achieve these goals.

7.      It provides the information on your competitive position (You vs. the Competitors – currently and for the future) within the industry and the profit characteristics of the industry, by conducting a thorough analysis of the competition (finding out where your competitor's weaknesses are and how you can take capitalize on them).

8.      It provides you with an individual target market – what are their interests and activities, their dreams, their vision and how could be add value by fitting into their interests.

9.      It provides the Key Actions and Proactive Action that are needed to be done to insure the future of the organization.

10.   Mostly importantly it simplifies the Business operations into smaller more manageable tasks

So you can judge for yourselves whether you need a Business Plan!!!!!

Change to Organization Structure;

Please note that as an Entrepreneur you will no longer be allowed to register Close Corporations – as this form of ownership is no longer permitted in South Africa,

New Business Start Up;

I have heard that New Business Start – Ups were down by 80%, interesting, could it have had anything to do with change made to the organizational structure process – and now individuals can’t register Close Corporations – I wonder or could this being depicting the landscape of the South Africa Economy? Still there are 20% whom are entering the Entrepreneurship route, but an Entrepreneur always strives to achieve their goals, dreams, visions and missions.

And this is the perspective of a 25 year old namely mine.

Have an Awesome Day and an Epic weekend!!!

Kind Regards
Kashveer "Kash " Gobichund