Business Planning

1837 Words4 Pages

BUSINESS PLANNING

Planning is the key to any successful business. There are many different models and variations of business plans, so it is extremely important to choose the right one specific to the type of business. Having a business and knowing what to do with it are very separate issues and creating a well-executed business plan for the right reasons will enhance the odds that your venture will be one of the ones to succeed.

“Accounting is the measurement, statement, or provision of assurance about financial information primarily used by managers, investors, tax authorities and other decision makers to make resource allocation decisions within companies, organizations, and public agencies.” (en.wikipedia.org ). Whether you are seeking funding from investors or you are compiling a business plan to serve as a guide for managing your business, it is imperative that you make financial projections. These financial projections will attract investors and serve as a guide to future business decisions. Financial projections can be intimidating. However, they are less a matter of mathematical capacity and more a matter of your knowledge of your business, the industry, and the market. To make projections, such as sales forecasts, you must first break down sales into manageable parts. One way would be to outline the products and services you offer, the unit price for each item, the anticipated inventory, projected sales per item for each day, week, month, etc. You will base these numbers on your experience in the industry and research. Finally, make an educated guess regarding total sales. Using the same procedure, calculate your expenses or startup costs if launching a new business. Use a template or sample as a guide. Es...

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... goals. The business plan is only useful if you use it. A comprehensive, well constructed business plan can prevent a business from a downward spiral. Finally, your business plan provides the information needed to communicate with others. This is especially true if you are seeking financing. A thorough business plan will have the information to serve as a financial proposal and should be accepted by most lenders.

REFERENCES

http://en.wikipedia.org/wiki/Accounting

http://entrepreneurs.about.com/od/businessplan/a/financialproj.htm

http://www.quickmba.com/accounting/fin/

http://www.bls.gov/oco/ocos012.htm

http://www.hawaii-sbdc.org/new-pol/SBA.htm

http://www.whitehouse.gov/omb/budget/fy2004/sba.html

http://smallbusiness.aol.com/start/startup/article/_a/what-technology-does-my-new-business/20060705162609990001

http://business.uschamber.com/P03/P03_6000.asp

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