"Real Estate Bits - 2"

Business plans are an important tool for all businesses, no matter how big or small. Think of it this way: You would not take a long family road trip without mapping out your route and planning your accommodations. Similarly, a well-run business also needs a plan. Here are some of the key benefits of a business plan:

• Organizes your thoughts in logical order.
• Helps you anticipate problems.
• An essential document when applying for financing.
• Assists you in decision-making.
• Guides your employees, partners, and suppliers.
• Keeps you focused on your goals.

The Components Of Your Plan

Most traditional business plans are broken down into the following key sections:

Business Description: This section describes your business. It contains information about you (and your partners if applicable), your goals and your mission statement.

The Marketplace: Includes information about your industry, customers (and potential consumers), along with your competitors. Market research provides you with this kind of information.

Sales and Marketing: Will outline your strategy for attracting and keeping customers and show how you plan to increase sales over time.

Operations: This section delineates how your business actually runs (or will run once started), including your staffing, management, the suppliers you will use, any alliances you have and your contingency plans to deal with unexpected challenges.

Financials: Includes information about financial resources, including personal resources, to show how you will support your business projections.

For each of these main elements, you may have sub-plans, for example a marketing plan or a financial plan.

Your financial plan can help you anticipate when and if your business will need to borrow money, the amount of financing you'll need and how to allocate the money. Your marketing plan will guide your advertising and marketing activities.

A Practical Working Document

In all likelihood, you will spend a considerable amount of time doing the research and then drafting your business plan. To get the most mileage from your hard work, treat your plan as a practical document that can help you attain your personal and business goals.

For instance, if you find yourself caught up in the day-to-day operations of your business, taking a fresh look at your business plan can help you stay focused on the bigger picture. Here's a simple way to use your plan.

(1) To start, write out a few achievable, measurable goals (including a budget) that flow from the business strategy laid out in your plan.

(2) Then measure your progress every month against the benchmarks in your plan.

(3) Revisit these goals periodically in light of changes to your business, the marketplace, or the larger economy to help keep your plan fresh and vital.

Using your plan in this manner on an on-going basis will help you maintain your strategic focus. Speak to your Small Business Advisor about how to get the most from your business plan.

Business plans are an important tool for all businesses, no matter how big or small. Think of it this way: You would not take a long family road trip without mapping out your route and planning your accommodations. Similarly, a well-run business also needs a plan. Here are some of the key benefits of a business plan:

• Organizes your thoughts in logical order.
• Helps you anticipate problems.
• An essential document when applying for financing.
• Assists you in decision-making.
• Guides your employees, partners, and suppliers.
• Keeps you focused on your goals.

Using your plan in this manner on an ongoing basis will help you maintain your strategic focus. Speak to your Small Business Advisor about how to get the most from your business plan.

Regards,

Nino Pasquariello.

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