Writing a Business Plan

1. Purpose of the Plan

Be clear about what the business plan needs to achieve.

1.1 A primary aim of any business plan is to set out the strategy and action plan for the business for the next one to three years (sometimes five years).

• It explains your objectives and how you will achieve them.
• By involving your employees in the complete planning process, you continue to build up a successful, committed team.
• Priorities are identified. Non-priorities are discarded, saving precious time.Once written the plan is a benchmark for the performance of the business.

1.2 Sometimes the plan is aimed at people outside your business.

For example when you are:

• Raising bank or equity finance.
• Disposing of a business.
• Attracting new senior management.
• Attracting business partners, such as distributors and agents.