The starting point for any business plan is to establish its purpose, how it will develop and who its target audience is. It is not just a plan for obtaining finance, and can be used:
- as a benchmark for the future;
- as a tool to see how your business is managed;
- to help focus on your business objectives;
- to help secure finance;
- to improve your business and help identify inefficiencies;
- to provide details of your business objectives;
- to test if your business or a new income stream is viable;
- ultimately give your business the best possible chance to succeed.
A business plan is helpful to all types of business. The types of businesses that will benefit from having a current, up-to-date and relevant business plan in place include those which are:
- applying for finance;
- expanding their operations;
- looking at specific projects;
- preparing their business for sale;
- seeking out opportunities or evaluating challenges;
- simply reviewing their business;
- starting up.
Please note that this is not an exhaustive list and any combination can be the reason for producing a business plan or reviewing an existing plan.