Knowing how to write a business plan and what is included in one is absolutely essential to setting goals and achieving them as well. Unfortunately, not all businesses have plans in place that will lead them on the journey to success merely because they were written without proper understanding and knowledge. Find the four areas that business plans must cover in this segment of the interview between Dale Beaumont and Peter Gow.
Having run several multimillion dollar business, Peter now consults to some of Australia”s fastest growing businesses and is now the director of Creative Capital.
Why is it important for owners to have a good business plan and what areas should it cover?
After reviewing thousands of them, I would have to say that a large number of Australian companies have very poor business plans. This is disappointing because plans show the intended direction and goals of the business, and the steps to implement these goals.
Well-formulated business plans are a very useful tool for managing and tracking performance. Successful CEOs use a combination of delegation and business plans to achieve superior performance, and when it comes to raising funding, a business plan is an important document to communicate your strategies and business model to future investors. Business plans need to cover four broad areas:
- People – members of your team and their ability to execute.
- Finance – where are you making the money? What else can you do to improve profit margins?
- Market – understand why and how your customers will buy your products and why you are preferred over your competitors.
- Leverage – using your relationships to gain wider market access.
For more on How to Write a Business Plan and this interview check out Secrets of Small Business Owners Exposed!