Introduction

Business planning is an essential component of any successful business. A well considered and constructed business plan can:

• help you safeguard your own investment;
• focus your efforts;
• ease external financing problems; and 
• provide a yardstick to measure your progress against.

Once developed, the business plan should be maintained in line with your business.

Business plans

Writing a business plan is essential. Areas that are usually covered in a plan are:

• description of the business: brief overview of purpose of business and location;
• evidence of demand for product or service: size and location of market, buying patterns, type of research carried out;
• sales and marketing: how you will promote your product or service, sales targets you have set, competition and how you will overcome it;
• product or service: description and its advantages (and disadvantages);
• management: Curriculum Vitae, training needed, what are these people bringing into business? and 
• financial forecasts: cash flow forecast, profit and loss, initial financial outlay.

Remember that it is best to be realistic with financial predictions; do not be over-optimistic.