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An effective business plan plays a very important role in achieving your business objectives. It helps to define and refine your company’s strategy. It can also facilitate to develop a framework for better business decisions. It plays a very pivotal role in establishing a new industrial venture, business or organization. A well written business plan can provide a good base for counselling from cooperators and sparring partners and also create new external networks or strategic alliances.

A business plan which is appealing to the stakeholder, will be able to communicate the future plans and vision of the firm. It also gives a platform of the employees to function like a coherent team and move ahead in a persistent manner. Your business plan should be able to clearly state how their investments are being utilized and how maximum profit can be generated. The key is to include facts generated through a properly conducted feasibility analysis.

A business plan will not produce fruitful results if it is centered solely on what the entrepreneur or the team members apprehend will happen. It can explain the finest growth path and plan, as well as the foundation for choosing strategy over the given alternatives.  Beside the technical details and estimated projections, a business plan should also be able to generate excitement and a sense of eagerness about the possibilities and excitement about the possibilities that can arise from the new business.

A business plan cannot enhance your profits or increase your selling’s, it is an enunciation of your company’s plan for handling the possibilities and issues in establishing. It gives you an outline about how to go about and breaks down the bigger picture into small steps.  The main aim of developing a business plan is to chalk down the company’s Business model. It is present in a well written form, one can easily change or alter your business plan. It should be able to identify the team, your objective, the issues that need to be solved, the procedures, the methods for production or the service plan, how quality will be maintained, address the distribution channels and competitive edge which is offered by nobody else in the market.

A business model that entails the key market trends is bound to produce good results. It also need to address the Company structure, Intellectual property and ownership. These are important when the business model is presented to external stakeholders. And finally any Business model cannot be completed without addressing the financial plan, timelines for profit and critical risk factors. There are so many misconceptions that need to be disregarded while designing a business plan. A few myths and their realities are explained as follows:

  • The business plan should not only be developed by new companies. Well established companies need to lay out their detailed business plan, so they are able to successfully implement new changes and modify their business strategy. 
  • Long and detailed Business plans do not gain the attention of possible financers or investors. They do not have the time to go through boring and long documents to give funding. Lengthy technical descriptions should be avoided and only the necessary information should be included. Everything should be concise and to-the-point. 
  • The significance of describing your team in the Business plan cannot be ignored. Investors are not only interested in your business strategy but also the workforce or team that will work for its successful execution. Input should be taken from the entire team. They need to feel a part of group where there suggestions and recommendations are highly encouraged and given due respect. 
  • A good Business plan needs to contain all the basic information has been custom designed by experts and experienced professionals. But it is not necessary that new and innovative ideas cannot be inculcated into your business plan. You should carefully analyze your targeted industry and design the business plan which will target your chosen enterprise. 
  • It is a false assumption that a good business plan can entail false assumptions or too much assurance for the potential investors. You should design your business model in a way that it accurately addresses the potential risk factors and suggest realistic solution to all these risks. If you have any previous failed experience don’t hesitate in sharing them with your investors. In this way you will be able to gain their confidence about how you have planned to overcome the short comings which were learned from your past experience.

A well written business plan should be able to address all the possible risks and threats. It should be designed in a way so that it can be easily modified with the rapidly changing trends and introduce new strategies. Experienced professionals always suggest that feasibility analysis needs to be done, in order to address the viability of your business plan.

Uzma Akbar is an ardent researcher, with a few International publications to her name. She is young scholar, who has also been awarded with Dean’s Roll of Honor in her Bachelor’s degree. She gained some teaching experience of the assigned subjects in NUST, which is one the most prestigious institution of Pakistan. She also mentored students to achieve their academic goals and assisted them in research oriented projects. Her areas of interest include Project Management, Entrepreneurship, Total Quality Management and Business planning.