The Importance of a Well Executed Business Plan

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The Importance of a Well Executed Business Plan

Most business strategists agree that planning is one of the most important parts of running a business. There’s the common know saying that “if you fail to plan, you plan to fail” and no matter whether it is a large multinational corporation trying to plan an expansion or a small business launching an exciting new product, the importance of a well executed business plan is of the utmost importance.

We’ve seen numerous clients who’s businesses shortcomings could have very well been avoided. Some of the more common reasons were:
* Running out of cash before they opened their doors because they haven’t anticipated their start-up costs.
* Missing sales projections because they didn’t really know who their customers were and what they wanted.
* Losing customers because their quality or service falls short.
* Becoming overwhelmed by too many options because they never took the time to focus on a mission and vision for their company.
* Going insolvent because they didn’t have a rational business model or a plan that mitigated risk.

business plan

Dream Team Capital (DTC) customises business and financial plans uniquely for each organisation and is dedicated to making the most of your business planning needs. We specialise in professional business plans written by accomplished business strategists. Our mission is to write customised business plans at an affordable price.

Business plans are being required for bank loans, investors, grants, venture capitalists, and even leasing office spaces. Our clients no longer have to worry about the complexities of becoming an expert business plan writer. Our highly skilled business strategists take an entrepreneur’s ideas and goals and put them into a tangible format that both you and investors, landlords or government require.

If using your business plan to raise funding, we guide you forward and provide you access to our vast funding network of venture capital companies, private equity companies, banks, Government BBBEE initiatives, Silicon Cape investment organisations, rent to own asset funding companies, crowd funds and more..

Business Plan for a Future Vision

Businesses evolve and adapt over time, and factoring future growth and direction into the business plan can be an effective way to plan for changes in the market, growing or slowing trends, and new innovations or directions to take as the company grows. Although clarifying direction in the business plan lets you know where you’re starting, future vision allows you to have goals to reach for.

Business Plan to Attract Financing and/or Grants

The Small Business Administration states, “The development of a comprehensive business plan shows whether or not a business has the potential to make a profit.” By putting statistics, facts, figures and detailed plans in writing, a new business has a better chance of attracting investors to provide the capital needed for getting started.

Business Plan to Attract Team Members

Business plans can be designed as a sale tool to attract partners, secure supplier accounts and attract executive level employees into the new venture. Business plans can be shared with the executive candidates or desired partners to help convince them of the potential for the business, and persuade them to join the team.

Business Plan to Manage the Company

A business plan conveys the organizational structure of your business, including titles of directors or officers and their individual duties. It also acts as a management tool that can be referred to regularly to ensure the business is on course with meeting goals, sales targets or operational milestones.

Reasons why we need a well Executed Business Plan

1. Grow your existing business. Establish strategy and allocate resources according to strategic priority.

2. Back up a business loan application. Like investors, lenders want to see the plan and will expect the plan to cover the main points.

3. Seek investment for a business, whether it’s a startup or not. Investors need to see a business plan before they decide whether or not to invest. They’ll expect the plan to cover all the main points.
4. Create a new business. Use a plan to establish the right steps to starting a new business, including what you need to do, what resources will be required, and what you expect to happen.
5. Valuation of the business for formal transactions related to divorce, inheritance, estate planning and tax issues. Valuation is the term for establishing how much your business is worth. Usually that takes a business plan, as well as a professional with experience. The plan tells the valuation expert what your business is doing, when, why and how much that will cost and how much it will produce.
6. Sell your business. Usually the business plan is a very important part of selling the business. Help buyers understand what you have, what it’s worth and why they want it.
7. Deal with professionals. Share selected highlights or your plans with your attorneys and accountants, and, if this is relevant to you, consultants.
8. Develop new business alliances. Use your plan to set targets for new alliances, and selected portions of your plan to communicate with those alliances.
9. Share and explain business objectives with your management team, employees and new hires. Make selected portions of your business plan part of your new employee training.

12. Decide whether or not to rent new space. Rent is a new obligation, usually a fixed cost. Do your growth prospects and plans justify taking on this increased fixed cost? Shouldn’t that be in your business plan?

13. Deal with displacement. Displacement is probably by far the most important practical business concept you’ve never heard of. It goes like this: “Whatever you do is something else you don’t do.” Displacement lives at the heart of all small-business strategy. At least most people have never heard of it.
14. Share your strategy, priorities and specific action points with your spouse, partner or significant other. Your business life goes by so quickly: a rush of answering phone calls, putting out fires, etc. Don’t the other people in your business life need to know what’s supposed to be happening? Don’t you want them to know?
15. Set specific objectives for managers. Good management requires setting specific objectives and then tracking and following up. I’m surprised how many existing businesses manage without a plan. How do they establish what’s supposed to happen? In truth, you’re really just taking a short cut and planning in your head–and good for you if you can do it–but as your business grows you want to organize and plan better, and communicate the priorities better. Be strategic. Develop a plan; don’t just wing it.

business plan

business plan