Using your Business Plan
A business plan is a tool with three basic purposes: communication,
management, and planning.
As a communication tool, it is used to attract investment
capital, secure loans, convince workers to hire on, and assist
in attracting strategic business partners. The development
of a comprehensive business plan shows whether or not a business
has the potential to make a profit. It requires a realistic
look at almost every phase of business and allows you to show
that you have worked out all the problems and decided on potential
alternatives before actually launching your business.
As a management tool, the business plan helps you track, monitor
and evaluate your progress. The business plan is a living document
that you will modify as you gain knowledge and experience.
By using your business plan to establish timelines and milestones,
you can gauge your progress and compare your projections to
actual accomplishments.
As a planning tool, the business plan guides you through the
various phases of your business. A thoughtful plan will help
identify roadblocks and obstacles so that you can avoid them
and establish alternatives. Many business owners share their
business plans with their employees to foster a broader understanding
of where the business is going.
| 
