point A to point B. By developing your business plan, you go through some critical thinking and analysis, which better helps you understand all aspects of your business.
A business plan is a clearly written analysis of your company. It explains the industry in which you compete, your company’s goals and objectives and your plan to meet these goals. In addition to providing you with a management tool that allows you to guide your business, it helps you to measure your success against projected goals and allows you to assess whether you’re meeting your goals. Of course, a business plan can
help you obtain financing from investors or lenders because it concisely describes your business’s goals, market segment, competitive advantages, management team, financial information, and financing request. A
business plan organizes and formalizes your business thinking process. A business plan clarifies the questions that might arise in managing your business.
It may seem counter intuitive but the shorter and more concise the business plan, the better. It is important to be realistic and as detailed as possible without being overly repetitious and verbose. A very concise plan is
better than no plan. You should, however, ensure that enough information is present to convey the full scope of the important points about your business and to positively emphasize your company’s advantages with clarity and honesty. On the other side, if you know of negative aspects of your business, that others might also see, you should address the issues and show how you have or will overcome the potential pitfalls.