A Discussion of Business Plans

A Discussion of Business Plans
Copyright © Jose Love


http://www.yourescape.2freedom.com

Nearly every successful (and not a few

unsuccessful) business has created a business plan

or two within the life of the company. These plans

can be used for a variety of reasons, but are most

commonly brought to life when the business is

seeking funds. This may be through fundraising, a

bank loan, or seeking out individual investors, but

the business plan shows how and why investing in

the business is a smart financial idea. Of course,

not all business plans are created by those

businesses looking to turn a profit. Non-profit

businesses also rely on these plans to raise funds;

though they will usually focus on the services and

social good their business will do, rather than a

bottom line financial consideration.

There are several types of business plans, and many

businesses create a business plan meeting each of

the types, depending on the circumstances

necessary. There is the elevator pitch business

plan, which acts as a teaser. These plans can be

used in short, two or three minute presentations in

order to spark greater interest from a group of

investors or a bank. Sometimes, a business will

have only a short time to present their initial

plan, and this is where this type of plan comes in

handy.

There is the oral presentation plan, which usually

focuses on a showy, entertainment aspect of

presentation. This plan is usually put forth to

encourage the potential investors to move forward

and read the written plan, which will be far more

detailed and include all the bottom line financial

considerations. The oral presentation is there to

generate excitement, and appeal to the investors’

human qualities, rather than facts and figures. If

there is a new product being included in the pitch,

a demonstration of the product will usually be a

good idea for the oral presentation.

The written business plan is where it all comes

together. This can be a lengthy as it needs to be,

and should probably follow one or both of the above

plans. Once the business has successfully attracted

some interest from potential investors, they are

given the written plan and can decide from there

whether or not they see the business plan as being

successful.

Business plans are a must for the small business

owner, looking to gain capital and seeking loans

from lending institutions. They are likewise

necessary for those publicly traded companies that

need to let stockholders know what their plans for

the future are. Even if neither of these are true,

business plans are an excellent way, even

internally, to set down goals on paper and give a

direct path of success to a business or company.

---------------------------------------------------
About the Author:
---------------------------------------------------
---------------------------------------------------
Advertising That Fits Your Budget!

---------------------------------------------------