When describing your business in a business plan, don’t assume your reader will fill in the details. When writing a convincing business plan, an important task is to clearly and exhaustively describe your business and exactly what it will involve. Let’s say you want to open a restaurant. What will you serve? What will your sample menu look like? What equipment will you need? Note that including french fries means you’ll have to install french-fryers, grease traps in the sewer line, hoods and fire extinguishing systems. On the other hand, by not serving fried foods you will save a lot of money in the kitchen, but maybe you’ll go broke when all the grease addicts go next door.
Or suppose you want to sell VCRs, video games or video camera equipment. Do you plan to have a service department? If so, will you make house calls, or only accept repairs at your store? What sort of security system will you install to protect your inventory? What about selling component sound systems or home entertainment centres? What about competition from nearby retailers? Answers to these types of questions will be crucial to the success of your venture and to writing your business plan. Long experience tells that you need a written document — even if you’re sure you know exactly what your business will do.
With this foundation document to refer to, you are less likely to forget your good plans and resolutions in the heat of getting your business under way. Any changes you later make can be made both consciously and with consideration.
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