Not everyone who starts and runs a business begins with a business plan, but it certainly helps to have one. If you are seeking funding from a venture capitalist, you will certainly need a comprehensive business plan that is well thought out and demonstrates sound business reasoning.
If you are approaching a banker for a loan for a start-up, you will require a business plan. If you have an existing business and are approaching a bank for capital to expand the business, they often will not require a business plan, but they may look more favourably on your application if you have one.
Reasons for writing a business plan include:
- Support a loan application
- Raise equity funding
- Define objectives and describe programs to achieve those objectives
- Create a regular business review and course correction process
- Define a new business
- Define agreements between partners
- Set a value on a business for sale or legal purposes
- Evaluate a new product line, promotion, or expansion
Read the full article here: http://ukba.co.uk/index.php?option=com_content&task=view&id=45#bp2
Download a free business plan template - click here.
Source: Palo Alto Business Software
www.ukba.co.uk
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2 comments:
Failing to plan is planning to fail. An astounding 90% of businesses don't make it past their third year and even those who do, only 4% regularly write and update a plan. If you are a one person business, maybe it is fine to just "keep it in your head" but if you wan to develop a serious business that can make money without you working in it, you will need a plan. Some people get put off by the financials, others by making the commitment that writing things down entails. Whichever is holding you back, get business advisor to help you.
I agree with Harold, the majority of my clients who have had a buusiness plan have ben able to raise finance, from banks or angels, much more easily than when they don't have a plan. Raising finance is only one benefit being clear what you are trying to achieve is a much stronger one for your business future.
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