Entrepreneurship – Business Plans

For the modern entrepreneur, designing a business plan is the first and most crucial step they need to complete in order to begin their journey into the business world. Put simply, a business plan is a formal statement containing your business goals, the reasons that those goals are attainable, and the means by which you plan to reach them. There are two main types of business plan, delineated by their target audience. There are internally focused business plans and externally focused business plans.

An externally focused business plan is one designed to meet goals considered to be important to external financial stakeholders in your business. This normally includes a description of the organizational structure of those employed for the purpose of meeting those goals. An internally focused business plan is one designed for those already within the structure of your business. They are aimed at setting internal goals that will allow the business as a whole to meet the external goals. One example of this would be a plan for the development of a new product.

Regardless of what the business plan is for, there are some things any business plan should be expected to include. Primarily, a good business plan involves a description of the financial structure of the business. Where the money is going to come from, and where the money is going to go. For example, if the business plan is being directed towards securing a bank loan, then it needs to include the methods by which your business plans to earn the money necessary to repay that loan.

Another key aspect in the creation of a solid business plan is the human resource management. Once you have succeeded in starting your business, it will need employees in order to function. Any good entrepreneur must have a plan for the amount of people they need to employ, and what exactly these employees will be expected to accomplish.

Essentially, a business plan is a blueprint for how you plan to accomplish the goals your business aims to complete. This also includes marketing strategies, a crucial aspect often overlooked by a new entrepreneur. Once your finances are in order and your human resources are properly managed, you still need a plan to attract the interest of customers. Whether you want to advertise online, on a billboard, or on a television commercial, the important thing is that your intended customers are aware of who you are and what your business offers them.