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What is a Business Plan? Why do I need one before I start my business?

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What is a Business Plan? Why do I need one before I start my business?

Idris Salami

Ilorin

Answer: A Business Plan is a document, or body of information, that defines the business with some precision. It identifies the goals of the business. It is like the curriculum vitae (CV) for your business.

The basic content of a business plan are:

  • Market Survey.
  • Marketing and Promotional Strategy.
  • Current Balance Sheet.
  • Income Statement.
  • Cash Flow Analysis.

A business plan helps the business to properly allocate its resources.  It helps it make the right decisions, and prepares it to respond to unforeseen events in the operations of the business.

A business plan is even more crucial if the business is to secure a loan as part of its financing package. In that case, the business plan will provide specific and organised information about the business, including details of how it will repay the borrowed money.

The business plan also tells the management, staff, suppliers and other stakeholders of the business about the operations and goals of the business.

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