THE BUSINESS PLAN
About this Booklet
This booklet demonstrates the importance of planning when starting up a business. It
illustrates how and when to use your business plan and also provides you with two
business plan outlines.
The first outline will guide you through a basic business plan format, ideal for the
potential business owner who must present a business plan to the bank manager to
The second outline is an extension of the basic business plan. A more established
business can combine these two plans. The second outline, which is more detailed,
indicates the type of information that you will need to incorporate into your business
plan as your business grows.
Booklets to read with this one:
Considering your own business
Key issues in small business management
Your business and your bank
Principles of finance and your business
Tax and the small business
Why is it necessary to have a business plan?
Experienced business owners and managers will tell you that the business plan is a
very important management tool. The business plan is a written road map of where the
business is going, what it has to do to get there, and what it will look like on arrival. A
business plan can take many forms, from a glossy, professionally produced document
to a handwritten manuscript in a file outlining the goals, objectives, strategies and
tactics of the business.
Uses of a business plan
A business plan is a valuable management tool. It has very many uses, which include
Setting goals and objectives
A business owner should use the business plan as a tool for setting the direction of a
business over the next few years. The plan should also include the action steps and
processes to guide the business through this period.
Of course, a business plan is not a guarantee that problems will not arise, but with a
well thought out plan, you can better anticipate a crisis situation and deal with it before
it becomes too serious. Fu