Spring/Summer 2010 - Robert M. Kerr Food & Agricultural Products ...

usiness & marketing
By Erin Early-Johnson
Business & Marketing Client Coordinator
erin.joy.early@okstate.edu
Writing a ...
BUSINESS PLAN
A
new start up food business
may wonder the purpose of
writing a business plan.
What makes a business plan such
an important part of starting a business?
Would you start a trip without determining
a route?
Then, why would you start a new
business without a plan on how to run
it, what your goals are, and what the
financial forecast may be?
This article will review a few fundamental
reasons for writing a business
plan.
Six reasons for constructing a
business plan include:
1
2
See the present and the future
Putting the business plan together
will force the owner to view the company
in an objective and critical manner.
This helps the owner see their
company for what it is presently, and
what it could be in the future.
Focus on ideas to succeed
Writing a business plan can help
the business owner focus ideas and
look at the business’s chances to succeed.
3
Measure progress
With a finished business plan,
a company can use it to serve as a
yardstick to measure its progress and
evaluate any needed changes. With
a business plan available, it will be
easier for the company to know what
steps to take to improve the companies
position, if by chance it is not measuring
up to what is expected.
4
5
Determine management structure
A business plan can determine the
management structure of a business,
and what ways it is best for the company
to function within its industry.
Planning your organization structure
helps determine the talent needed to
build the business.
Communicate to outside sources
A business plan can communicate
the business to outside sources. Business
plans are written as a snap shot of
the business. It gives information on
the company’s purpose, management
structure, and financials.
Gain financial help
One of the main reasons for writing
a business plan is for a company
6
to gain financial help from a lending
source. A business plan is something
a loan officer would request as part
of the decision to assist the company
with a loan.
For a company to survive and succeed,
it is very important for the company’s
owner to plan.
With the failure rate of start-up
businesses being so high, the business
plan is a valuable source of information
for a new company.
Even if the business plan is considered
a valuable document, it must
be used to be valuable.
Not only, is it best for a new business
to write a business plan, but it is
also best if the plan is used to benefit
the company.
If you have questions about writing
a business plan or anything
concerning your start-up business,
please contact Erin Early-Johnson,
FAPC business and marketing client
coordinator, by calling 405-744-
6071 or emailing erin.joy.early@
okstate.edu.
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