Why plan, you ask? It is no secret that there is a very strong consolidation movement going on within our industry. Five years ago there were 55, independent agencies.
As such, they may contain out-of-date references and broken links. To see our latest newsletters and current information, visit our website at http: Wilson and David M. A business plan is a document outlining the key functional areas of a business including operations, management, finance, and marketing.
Simply put, a business plan is a roadmap for a business. The traditional business plan is a paper document, although the emergence of electronic media has made paper an option.
The depth of detail that a business plan contains will vary depending on the scope of the business and the purpose for which the plan is being prepared. A non-traditional business trying to obtain venture capital will have a much more detailed plan than a more conventional business trying to obtain a small bank loan.
Almost all business plans have parts in common, which will be discussed later. This sounds like a lot of time, but not when you are making a five or six figure investment. Business plans may be prepared for many different reasons including new business start-ups, major changes in existing businesses, or simply to maintain the strategic direction of an ongoing business.
Business plans can be used both internally for management purposes, as well as externally to attract investors, obtain financing from creditors, or recruit quality partners or employees.
Business plans provide the entrepreneur with a means of evaluating the feasibility of a proposed venture and may uncover previously unconsidered opportunities or limitations. Business plans should evaluate, not promote.
Business planning helps take the emotion out of decisions and focuses attention on reality. Business plans may be customized depending on the target audience -- investors, creditors, the board of directors, or some other group.
There is often a question about who should prepare the business plan. Should it be done internally or should someone be hired to do it? Although there are professional consultants who specialize in developing business plans, it is the business owner who will be the one to implement the plan.
People are not investing in the consultant, they are investing in the business.
At the very least, there should be input from every level of the organization. If it is a family business, both spouses should have input as well as any other family members who have a stake in the business.
If it is a large, corporate business, senior management should not have sole responsibility for creating the plan. Everyone from the CEO to the entry-level employee should have a voice. With the proliferation of computers has come a multitude of software programs for creating business plans.
These programs are useful for providing a basic framework for the plan. However, their flexibility may be limited. Combining these programs along with individual creativity will make for a better plan.
It is likely that only a small percentage of traditional farming operations have a business plan. For relatively small operations or those with a stable existence, a plan is probably not necessary. However, for larger producers or those in an expansion or transition mode, a business plan can be invaluable.
It is important to point out that a financial plan is not a business plan, rather it is just a component of it. Many agricultural producers are turning to alternative crops, employing non-traditional practices, or implementing unproven technology.
In these situations, a sound business plan is recommended.the groups of interest to a business that are defined by common factors such as demographics, psychographics, age, or geography.
marketing mix the combination of the four factors— product, price, place, promotion— that communicates a marketing vision. A strategic business plan or road map is essential for success. I’m sure you’re used to planning family meals, your kid’s after school activities, and the intricacies of juggling home and work life.
The fact is, however, that only 10 percent of us have a fully developed written plan that each member of the agency staff is aware of and following. A business plan is a document outlining the key functional areas of a business including operations, management, finance, and marketing.
Simply put, a business plan is a roadmap for a business.
The traditional business plan is a paper document, although the emergence of . A business plan is the road map of your entrepreneurial venture.
Our guest author shows its key functions, and points you to some useful resources on the Internet to .
A good business plan is a roadmap for success After the “bright idea” the first step to a successful business is a business plan. Posted on February 26, by Brenda Reau, Michigan State.