Published on July 17th, 2012 | by admin1
Business Plan – An Extended Definition
If you plan on running your own business it is not enough to know that you have the money to invest in this, but you need to develop a business plan for that matter. Not many entrepreneurs have considered this detail simply because they were unaware of its definite existence. You will find many of them saying that they had something in mind and have put that idea into practice and found out that it got them pretty good profits. Well, this was indeed a fact that had occurred long time ago, when the concept of starting a business was at its inception.
Nowadays with a competitive market in almost any industry it is hard to consider starting your business without drawing a business plan. But let’s see what exactly this plan means.
* First of all its definition will describe it as a chart that contains the entrepreneur’s goals while figuring out how to achieve them. This will act as a guide showing you how to keep track of your objectives considering also the future conditions.
* Developing further the definition of business plan you will find it consisting of: a current balance sheet, income statement, and a study on the cash flow. All these will primarily relate to applying for a loan and this aspect should be included also in the plan with details on loan repayment and business information.
* Your business plan should include as well your resources that must be shown how you allocate them in an organized manner.