The fact you have this book in your hands means that you are already aware of the importance of a business plan. With business failing at an alarming rate the need has never been greater to start off on the right foot with a clear understanding of exactly what you hope to achieve and how you will do it. A well thought out and carefully structured business plan is the key to the long-term success of any business. Whether you are just starting a business, buying one already established or perhaps in need of extra finance for expansion you will need a business plan.

Understanding The Need For A Business Plan

Reasons For A Business Plan

Your reason for compiling a plan will be different for each situation:

• If you are starting a new business you will require a plan to clearly assess every aspect of the business and show how it will succeed.
• If you are buying an already established business you will need to identify the strengths and weaknesses of the business to decide if you will be able to make it a success.
• If you are already up and running and in need of extra finance you will need a plan to convince those putting capital into your business that you can and will succeed.
• If you are applying for one of the many grants available.

Who Will Read Your Plan?

When you begin to compile a business plan you must always remember who the plan is for. Just as an author must always remember who will read his books so you must remember who will read your business plan. With this in mind you must present your plan in a clear and logical format. This will enable the recipient to achieve a clear understanding of your business and make a decision based on the information you have supplied.

Your business plan will benefit the various types of people who will all be using your plan as a basis for making decisions:

• your bank manager
• alternative providers of finance
• business advisory organisations
• friends and colleagues who will invest in your business
• yourself and your work colleagues who will be running the business and using the plan on a daily basis.

Assessing Yourself

Launching a new business or buying an existing one is a huge step that shouldn’t be taken lightly. However with the right forethought and careful planning the transition from being a salaried employee to a self-employed worker should be a simple process. But before you take the plunge and tell your boss what he can do with his job, make sure you have the abilities needed to run your own business and that you have chosen a business that will suit your abilities. It is no good considering setting up a business to repair video recorders if your only experience of them is to press a few buttons to record your favourite programme.

Self-Motivation

You must find your business both stimulating and exciting to run, or you will find yourself getting bored and your enthusiasm draining. It does not matter if your friends find your particular business idea uninteresting; it is what makes you satisfied that counts. After all it is you that will be investing time, energy and money in your business, not your friends.

Have You Got What It Takes?

The dream of owning your own business and becoming your own boss will for many remain just that, a dream. However, for those with the determination and drive to turn their dreams into reality, then anything is possible. As you are reading this book it is assumed you are one of this number ready to take your future into your hands and become your own boss.

Becoming Committed

In the early days your business will demand your total commitment for very little financial reward. This can put a great strain on both yourself and your family so sacrifices will have to be made. You will probably have to survive on a reduced income whilst the business is getting established. The annual holiday in the sun will be postponed for a while and very few evenings and weekends will be totally free from work. You and your family must believe in your business and be prepared to adapt to the inevitable changes to your lifestyle that a new business brings with it.