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Business Preparation and the Initial Plan

Business plan preparation is very detailed and based on extensive research. Writing a thorough business plan is the first step in building a successful business because it sets the tone and establishes the direction in which the business will go in its developing years. A business plan can paint a very positive picture of the business and encourage investors and other people to get involved with the business or the plan can convince others that the business has little chance for success because the plan is shoddy and poorly written. To avoid this latter result, business plan preparation is an essential element in the business development process.

Business Plan Preparation: The Task

Business plan preparation essentially means doing all the background investigation and research that is necessary to write a detailed, complete, accurate plan for the business’ goals and future direction. The business plan includes at least four components: a description of the business, marketing, finances, and management. Research is necessary for all of these different pieces to capitalize on the proven successes of other businesses in history and learn from the mistakes and failures of others.

In the business description component, plan preparation revolves around carefully considering, analyzing, investigating, exactly what is best for the fledgling business in terms of goals, products, target market, etc. The business owners must determine what the market is receptive to, if there is currently room in the market for a new addition, or if the market is saturated. Marketing is an element that requires much preliminary background work, as well. There are obviously some marketing strategies that work exceptionally well for some products and services, while other strategies do not meet with the same success. Marketing efforts are also dependant on the area, too. Researching marketing tactics that have worked, including approaches the company itself may have used previously, can provide important information that can be a part of the business plan.

Business plan preparation for the finances section primarily involves collection of data. Businesses must collect data upon data relating to all of the financial aspects of the company because this information can have serious implications in the construction of the business plan. Management preparation involves deciding how the organization structure and hierarchy will be established, what the qualifications are for these positions, who will fill them, etc. Essentially, business plan preparation revolves around thinking about many different questions and considerations, analyzing and investigating the situation and circumstances, and making crucial decisions about the goals and direction of the business.

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