A sound business plan is vital to the survival and health of your business. It is your roadmap and guide for growing the company. Without this plan, you are left guessing, and you cannot sift through the tons of tasks that need to done to set your priorities straight.

A business plan articulates where you want to lead your company, what support and programs you need to achieve your vision and goals. The plan lays out your strategies, the potential problems that you foresee and your organizational structure. It also presents the financial resources you need and how you intend to use them.

It is a document that you always go back to and measure your performance and achievements against. A business plan is also used when you have to borrow from a bank. Usually, traditional financial institutions require that you present them with a concrete plan to prove just how serious you are about growing your business. This document also comes in handy when you are attracting investors and partners. Through this document, you can fully describe the nature of your business, your strengths and your areas of growth.

Any business school d prescribes a standard format for presenting a business plan. It has basically three major parts: the business concept, the marketplace section and the financial section. It also has seven key components: executive summary, business description, market strategies, competitive analysis, design and development plan, operations and management plan and the financial factors.

The business concept tackles your business environment- your organizational structure, your flagship products and services and your growth strategy. The marketplace section profiles your target market- identifying them and analyzing their buying routine and what could attract them away from your competitor. The financial section, prepared with your accountant or financial adviser, describes your financial status- income and cash flow. It also presents certain financial scenarios. You may also use a spreadsheet program.