Regardless of the size and types of business enterprises you have, business plans are vital to the success of your company.

Opening a company does not only imply complying with the legal documents and requirements set by the government, but you need to formulate your own business plan to succeed. This document is not only prerequisite when filing for articles of incorporation or in registering to the Securities and Exchange Commission (SEC), but it serves as your compass to guide you in your travel. Bear in mind that the business sector is not a bed of roses because the industry is full of rivalries, competitions and challenges. If you do not want to fail during the initial stages of operation, you need a business plan to guide you on the right path to pursue.

Importance of business plan

1. It is a vital document required to apply for a loan from banks and other financial institutions. It is required by capitalists and investors before they decide to invest their money on a company. Investors need it to assess the feasibility and profitability of the firm they are planning to pour their hard earned funds.

2. It is needed in identifying challenges finding solutions to these problems. It serves as a guiding map that gives you hints on what to do to achieve your short- and long-term objectives and goals.

Despite its significance, there are still elements or factors that business owners failed to incorporate in their business plans. They forgot that these elements are also crucial in the success of the company.

Majority of business plans contain the following elements:

*Executive summary

*Corporate description

*Organizational structure

*Product and services profile

*Market analysis

*Financial plan

However, some experts believed that the components mentioned above are not enough to constitute a good business plan. Some business plan critics believed that certain elements are needed to attract the attention of prospective investors and readers. It should be attractive and catchy to make them delve further and read the document thoroughly. They believed that some businessmen failed to consider the following elements in their business plan:

1. Opportunities and risks – These are vital components which are relevant to the executive summary. It should be the first area that should catch the attention of readers to make them read further and decide to invest in the company

2. Competition – Some business owners failed to integrate competition in the document. Remember that investors are realistic and they want to gauge how their investments fare with the presence of rival companies in the market. It would be unrealistic not to enclose competition element in the business plan because we all know that competition does really exists and it is one reason why companies strive to improve their products and services. Bear in mind that there is no such thing as perfect products and perfect services.

3. Realistic projections – Most often, business projections are impractical and poor. If you want to attract more investors, it should be realistic and should be supported by the present economic marketplace.

4. Environmental responsibility – Companies are the top contributors of carbon dioxide emissions and pollutions. With the strict environmental protection legislations and laws, companies should clearly stipulate ways and means to reduce their carbon footprint.

Does your business plan contain these elements? If you want your business plan to be effective and catchy, make the needed changes now.

Mabel Miles likes to share information on hotel business plan template and simple business plan as well as related business matters.

Mabel Miles likes to share information on hotel business plan template and simple business plan as well as related business matters.
http://www.growthink.com/businessplan/help-center/hotel-business-plans
http://www.growthink.com/products/business-plan-template

Author Bio: Mabel Miles likes to share information on hotel business plan template and simple business plan as well as related business matters.

Category: Business Management
Keywords: business plan,business plans,good business plan,business plan critics,business plan contain