Business Plan

A business plan has far more uses than simply securing funding for the startup or continued operation of the business for which it is written. These documents, if properly put together, contain information that is both useful and vital to the business long after it's been in operation, including the overall strategy for success, an analysis of market challenges and advantages and figures that constitute the operational goals of the business. It should also be a living document and be updated regularly.

A company's business plan constitutes it's basic ideas, goals and the strategies chosen to achieve those goals in written form. This is an incredibly valuable strategic tool. Even in the military, plans are hardly ever executed without written orders from which to work. Written strategy allows those involved in the business to operate with concrete goals in mind and with strategies that have been thought out and which are not reactionary, panic-mode measures put together on the basis of emergent situations. These plans and strategies are useful in providing structure, consistency and effectiveness to the business's efforts toward success.

A living document means a document that is never truly completed. Invariably, the initial ideas and strategies formulated at the outset of the business will need to be adjusted to compensate for shifting market conditions, to compensate for unexpected moves by competitors and to deal with changes in the staff of the business itself. Going through the process of putting these plans into written form encourages thoughtfulness and purpose in their formulation. Having a concrete plan from which to work makes it easier to efficiently bring the business's resources to bear in conquering new challenges. The entire plan should be kept fresh, especially financial information, to reflect the changing situation of the business.

A business plan may be updated by committee or by the owner themselves. The process of updating should be as free-flowing and creative as is the initial writing with the exception of bringing the advantages offered by experience operating the business to the table. As these documents continue to grow, they allow the business to redefine itself and its goals while remaining true to the original vision of the founders. It also makes it far easier to seek additional funding in the future. Having the business plan updated, revised and ready to be presented to potential financial partners saves time and carries with it an air of professionalism.