The Definition of a Business Plan



The definition of a business plan is simple. It is your road map to being successful in your new business. But many times individuals make the biggest mistakes of their lives by thinking that the business plan is only for seeking out financial assistance! Not even close to the truth! If that is your only purpose I would say just one thing to you! Good Luck! The very first time I sat down to produce a business plan presentation and was still asking myself what is a business plan even was that was my own idea of what a business plan was for! Boy was I ever wrong!















The definition of a business plan is simple. It is your road map to being successful in your new business. But many times individuals make the biggest mistakes of their lives by thinking that the business plan is only for seeking out financial assistance! Not even close to the truth! If that is your only purpose I would say just one thing to you! Good Luck! The very first time I sat down to produce a business plan presentation and was still asking myself what is a business plan even was that was my own idea of what a business plan was for! Boy was I ever wrong!

Now the true definition of a business plan is that it ultimately prepares you to either start a business from the bottom up or grow your business to a new level. These are the parts of a business plan presentation;

An Executive Summary: This defines the important parts of your business idea in a narrative format in two pages or less. This is an opportunity to sell your business idea.

A Summary of your Company: This is a ture description of your business, ownership, and history. For a start up business this will be presented in a different way.

Description of your Products or Services: This is an opportunity to describe your services or products and how they are any different from the competition in the sales area that you intend to market them.

A Market Analysis: This is the tough part. This is where you provide the details of your potential customer, who your competitor is, the size of the market, and the anticipated market growth for the area you are targeting.

A Strategy and Implementation: This explains how you will sell market your service or product, how you will implement your marketing plan, and provides sales projections.

A Management Summary: This is your opportunity to explain your ability to manage this new business idea. This is a critical piece to securing an finances. You must be able to establish that you have the ability to make this business successful.

A Financial Plan: This is also critical data for securing financial backing. This will contain key financial data, such as potential sales, your cash flow, and projected profits.

Not taking a business plan serious is like taking off for the moon without understanding what gravity is! The definition of a business plan starts with understanding who your customer is and what do they really want. True you can start with a product but you sure better be able to adjust it to fit your customers needs. The whole idea of the business plan is to find out if your business idea will truly be successful. Some important questions to be asking about your customer is;

How old are they?

Where do they live?

Do they have children?

Do they own their home or rent?

How much money do they make?

Do they have a college degree?

Are they male or female?

Definition of a business plan woman

Of course these are just a few of the many questions you should be asking yourself. Remember the definition of a business plan is to fully understand what obstacles you must overcome to pave the way for your business idea to turn into a successful business and career.


Don't try to fit your customer into your little box


Don't try to fit your customer into your little box. You better be prepared to fit your product into theirs. Too many times someone talks themselves into thinking that their product is going to sell millions. The truth is that it just might, but make sure your do your market research, develop a sales strategy, be able to forecast realistically your number’s, know what your business expenses will be, and know your industry.

For every successful new business there are hundreds that fall to the wayside because someone didn't plan out their business strategy first. The definition of a business plan is doing your homework before you invest your life savings into a bad idea. Should ofs and could ofs don't pay the bills when they come due.


Don't assume anything!


Another definition of a business plan is to know your competition. Who is doing the same thing and are they successful? Check them out! Go visit there store or investigate their service. Why are they doing really well or how come they are going out of business? Don't assume anything!

Cover all the bases and plan for the worst while hoping for the best. I don't know how many times I have seen some of these home improvement television shows where they start with a limited budget and never stay within it. There is always the unexpected. If your budget is so tight you can’t afford to be wrong on anything, don't even waste your time. Why? Because you will be wrong, and you will have missed more than one thing.

Don't count on luck to make you successful. Know the definition of a business plan and stick to your business plan. And more than anything don't let pride get in your way!

There are many great business planning software programs available that are affordable.

May God Bless You!

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