What is the use of business plan?

What is the use of business plan?

Contents

How important is the business plan?
Creating business plan?
Business plan uses
ًWatch: What is a Business Plan?

A business plan: is an official statement or a map that helps you achieve your commercial and economic goals. It includes a list that contains all the goals and desires that the project owner wants to achieve in a specific period of time, whether it is short, medium or long-term. The business plan is the cornerstone for the project as it is the first step that must be taken when creating a new project or developing an existing project.

How important is the business plan?

The business plan is a very important step for the investors and the owners of the projects. If the project is new, the business plan is prepared in order to describe a detailed method that enables the project to achieve the goal for which it was created, and if the project already exists, it is prepared for the development of the project. An accurate, well-thought-out work plan must be presented to ensure the success of the project; the work plan is prepared after the decision to start the project has been taken, contrary to the feasibility study.

Creating business plan?

Here are some important steps for creating business plan to ensure the success of the idea of creating or developing your project: -

When creating business plan, and as part of the business plan components, you should write an introduction that provides a comprehensive description of the project and a brief summary of its main objectives.
When creating business plan, and as part of the business plan components, the purpose must be specified. The main goal of creating the project and all the goals that are to be achieved by those responsible for the project.
When creating business plan, and as part of the business plan components, you should define the target group and studying its culture, interests, and how to deal with it.
When creating business plan, and as part of the business plan components, you should conduct a study on the market need for the service or commodity provided by the project through studying supply and demand.
When creating business plan, and as part of the business plan components, you should Study the internal and external factors that affect the project.
When creating business plan, and as part of the business plan components, you should develop a project strategy by identifying difficulties, and defining the means that must be followed to overcome them.
When creating business plan, and as part of the business plan components, you should know competitors and focusing on the project's competitive advantage, and attracting the target group.
When creating business plan, and as part of the business plan components, you should set a schedule for the project tasks to determine the specific time for starting and ending each step of the project.
When creating business plan, and as part of the business plan components, you should develop a financial plan to determine the capital required to start the project, and the costs and expected revenues for the project, and the figures must be realistic to be able to know the degree of success of the project.
When creating business plan, and as part of the business plan components, you should determine the mechanisms of production, implementation and production capacity.
When creating business plan, and as part of the business plan components, you should know the human, financial and technical resources necessary for the success of the project, and identifying the available resources to obtain those resources.
When creating business plan, and as part of the business plan components, you should determine the necessary equipment, machinery and technology.
When creating business plan, and as part of the business plan components, you should develop a marketing and product promotion strategy.
When creating business plan, and as part of the business plan components, you should study the legal and legislative aspects.
When creating business plan, and as part of the business plan components, you should develop a plan and strategy for developing the project for a period of 2-3 years.

Business plan uses:

The following are the main business plan uses:

The first of business plan uses is to help you arrange your thoughts.
The second of business plan uses is to make you define your goals accurately and clearly.
The third of business plan uses is to enable you to maintain your business strategy and your project.
The fourth of business plan uses is to help you know the surrounding market conditions, your position relative to the target group, and also to competitors.
The fifth of business plan uses is to give you an idea of the difficulties, and obstacles that your project is expected to face to avoid them.
The sixth of business plan uses is to reduce the possibility of failure and the size of losses.
The seventh of business plan uses is to clarify the interconnectedness between the work components and the necessity to pay attention to the project schedule.
The eighth of business plan uses is to control costs.
The ninth of business plan uses is to provide a summary of the project, which facilitates its evaluation, making it easier to obtain financing from the funded entities.
The tenth of business plan uses is to give you a future view of the market and the changes that are expected to occur, which will help you to develop the nature of your business.