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What is A Business Plan
The very thought of a business plan can at first sound
daunting and you may kid yourself that you don't really need one. However,
a business plan is a key element in the future success and longevity of your
business.
There are many different types of business plan and the one
you choose to create will depend on the type of business or service you offer.
However, the four main business plans fall into the following categories:
Short business plan
The short business plan exists on its own but can also be used
as a precursor to a full blown business plan. Generally speaking, a
miniplan would be used to quickly assess a business concept, or the interest of
a likely partner or investor. An overview of key issues should be included such
as the concept, financing business cash flow, marketing plans and projected
income of the business.
Working Plan
The working plan should contain all the details of how your
business will operate. It is for internal use within the business and
therefore doesn't need to have the formality of a business plan that might be
shown to a potential investor. It should, however, contain the nuts and
bolts of how you plan to run your business day to day for internal consistency.
Presentation Plan
A presentation plan is the posh version of a working plan for
the simple reason that it is the presentation plan that is shown to likely
investors, partners, banks etc. So it is important that it is clearly
understandable for those not in the industry, accurate in its financial forecast
and cash flow and internally consistency. In other words it is the
professional presentation of your business and its inner workings.
Electronic Plans
Electronic plans are used in conjunction with hard copy
business plans. Many businesses choose to have an electronic version as well
which comes in useful for presentations or if you have complex spreadsheets and
information to be presented.
In summary, whichever plan you choose bear in mind that whilst
different in format each plan should present your business in the best and most
accurate light whether it is to be used internally or externally.
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