subject: What Is A Business Plan And What Does It Actually Do? [print this page] The foundation of any company or business starts with a well-formed business plan. For most companies a good plan can have several benefits, one of which can help you to raise the much needed capital to expand an existing company or help with a new start-up company.
There are several reasons why a business plan is needed, but the most notable is that a well-thought business plan can identify strengths and weaknesses plus assess every aspect of the business so that you can know whether it will succeed or not.
The first step is to understand the audience you're targeting with your plan. One company is vastly different from another, so your goals and expectations will differ as well.
You can enlist the help of a 'Go Public' firm that will have consultants available to help you with refining the business plan you have. After all, you may be surprised to find that your business plan may be too long, or is geared towards the wrong audience. It's essential that you understand what type of people will read your business proposal and what they expect from it.
A lot of thought will go into a business plan, and some areas that you'll cover involve planning your legal entity, choosing a legal trading name for your company, defining the nature of your business, defining your objectives and mission statement. Along with analyzing your market and competition and choosing how your operational plan will work etc.
If you're targeting investors, it might be a good idea to have an investor ready plan that is targeted specifically toward venture capitalists and angel investors. These investors want to ensure that you have a good exit strategy plan for the future if you have a public company and in what direction you want to build your business.
As a prospective company that might want to trade on the Pink Sheets or NASDAQ, you need to have a firm business plan that helps your company grow in the right direction.
There are 'Go Public' law firms that specialize in securities law, plus have been involved in offerings, SEC reporting, private placement memorandums, Sarbanes Oxley Compliance laws and registration statements. An experienced firm could make all the difference when you decide to take your company public. Not to mention all the benefits you receive from taking your company public with the best one being the fact that it will be easier to raise the much needed capital for your company.
Trained experts should be able to guide you in the right direction and help with getting your company running according to your business plan.
Try not to make the same mistake as other companies do, that once they are up and running, they discard their plan and do not follow it. Your business plan will help you in your task to monitor the overall progress of your company and how well it is performing.
In your business plan you would have a marketing system, and this will grow over time. You may even find that your mission statement or direction may change, but whatever you think, a business plan is there to outline your future success for you.
by: Jason Bacot
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