Do I Really Need a Business Plan?
Once seen as a luxury for larger, established corporate structures, business plans, feasibility studies and project studies are now more than ever a total and complete necessity.
In the present economic climate, banks, investors and entrepreneurs wont even look at loaning or investing money without a professional plan / study.
Up until a a few years ago even a cookie cutter "Template style" business plan was good enough.... NO LONGER. Every lender or backer wants a professional, well researched, well documented, formal plan with a minimum of a five year cash-flow model. The model must be broken out, by line item, with P&L shown monthly over the extension of the model. Normally the cash-flow model should be two years longer that the expected "Pay Back" / "Return on Investment". For example if you are looking to pay back the investment / loan in 3 years you need a 5 year model. If pay back is 10 years you need a 12 year model.
As true now as it was when first penned by a Greek philosopher centuries ago. The statement "Man never plans to fail, he only fails to plan" has been part of Plans & Profiles Logo since 1976.
Business Plans and Advanced Business Plans
These are an absolute prerequisite for any form of funding, re-financing, expansion, acquisition, new projects. They are required by banks and insisted upon by investors and other financial institutions prior to any decisions whatsoever being made. Remember, financiers look at everything with very sharp eyes and they "do see it all". They will look at every part of the plan and make sure it is to a very professional grade. They will make sure the financial notes gel with the actual financial model and also do spot check due diligence.
Planning is no longer a luxury confined to larger companies. Advanced planning can make even the most daunting task less complex. Plans, studies, profiles and projections are essential parts of commercial practice. They are as much needed for the start of a new enterprise as they are a necessity for multi-national corporations.
Business Plans take many different forms dependent only on the rationale for their commission. In the main, we are commissioned to write plans that are to be presented to banks and financial institutions for new projects, company expansion and/or full reorganization.
Click here.. For an example of a plan for a Grand-Prix circuit in West Africa.
What does a business plan Include?
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