DEVELOPING A BUSINESS REQUIRES A PLAN

Developing a business requires a plan. There has to be a channel for the ideas and goals of the business to pass through.  Unless you can define on paper what the business goals are and how they should be achieved you should not start a business.  The plan becomes a vehicle of achievement that takes a vague idea or desire and turns into a successful business venture. 

Despite the  importance of a business plan, many entrepreneurs drag their feet when it comes to preparing a written document. They argue that their marketplace changes too fast for a business plan to be useful or that they just don't have enough time. But just as a builder won't begin construction without a blueprint, eager business owners shouldn't rush into new ventures without a business plan.
 
The basic components of a business plan includes a current and pro forma balance sheet, an income statement, and a cash flow analysis.  A written business plan helps to allocate resources properly, handle unforeseen complications, and facilitate the business decision process. Because it provides specific and organized information about your company and how you will repay borrowed money, a good business plan is a crucial part of any loan application. Additionally, it informs sales personnel, suppliers, and others about your operations and goals.
 
Ninety percent of new businesses fail. Most do so because they lack specific direction. In one survey, out of 29,000 businesses started, 26,000 of them failed. Of the failures: 67 percent had never written a business plan; 57 percent had no outside guidance; and 71 percent hadn’t taken any business courses.
 
Question the value of your business development ideas before implementation.
 
Some questions to ask and answer:
 
Is the business idea a good one?
 
What is the best business model to use?
 
Is the business model manageable?
 
Is there adequate funding for the business?
 
What is the long-term business strategy?
 
What is the exist strategy?
 
The answers to these questions will put you a path to building a strong business.