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YOUR BUSINESS PLAN CAN MAKE YOU MONEY!

You go to all the trouble of putting together a professional standard business plan, then you put it in the back of the filing drawer and forget about it. Didn't they tell you in business school that a business plan can make you money? Grab it out and dust it off, because I'm going to tell you how!

Firstly, your business plan should be your blue print to your business. It should be like the road map that clearly shows you how to get from point A (starting your business) to point B (reaching your milestones). Then you can use it to point others in the same direction as yourself, which is so important for all your staff. The point of knowing where you are heading and sticking to the right path is that it will save you money that you could have wasted on taking a wrong turn. A business plan limits your options which keeps you on track!

Secondly, a well-prepared business plan contains all the information you need to market your business. It should include a profile of your customers, your business opportunities and threats, strengths and weaknesses. Details of your expected cash flow, your budgets and your break-even allow you to know what to expect financially. It also should list your goals and milestones so you can track how you are traveling. This is your greatest tool in putting your marketing strategy together and designing all of your marketing materials.

Thirdly, it is your ticket to presenting your business to potential investors and this is where you can make some big money from your business plan. The first question a bank is going to ask is to see is a copy of your business plan. Any potential investor in your business is going to want to know that you have done your research, that you have a good idea of what you want to achieve and how you are going to achieve it. The more professional your business plan looks the more respect and favor it is going to earn you in the world of finance!

When you are preparing your business plan, make sure it includes: a vision statement or summary; details of the business (address, contact details etc); analysis of competitors; analysis of customers; details of the premises and any relevant licenses; details of insurance and lease agreements; financial documents including profit and loss and projected cash flows for a minimum of 12 months; and finally, a marketing strategy for a minimum of three months.

Like any plan, your business plan should be a living document that can be modified as things change in your business. Treat it like a guide rather than a bible, as this will help it to be a useful tool in your business. Keep an electronic version so you can modify it regularly and make sure you version control it so you know which version you are up to.

Ask any business that is successful and they will tell you the value of their business plan!

Learn more about this author, Hayley Solich.
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