Your business plan has many functions such as securing external funding through to measuring the success of your business. It is a statement of intent and details how you are going to develop your business as well as when you are going to do it and who will play a part.

Clarity on issues that concern your business plan is very important. Even if your plan is only intended for an internal audience you should write it as though it is for an external audience.

If you want your business to be a success then you need to have a realistic and working business plan, without one your business will have no guidance and you will find it virtually impossible to gain external funding for your business but your plan is not just about getting you the finance that you need it is also about:

. Helping you spot potential pitfalls before they happen
. Structure the financial side of your business efficiently
. Focus your development efforts
. Work as a measure of your success

Although there is in theory no fixed content to your business plan there are certain elements that should run throughout all business plans. This isn't so much about content but focuses more on the actual structure of your plan. It should include:

. An executive summary, an overview of the business you want to start. Many lenders and investors make judgments about your business based purely on this section of the plan alone.
. A short description of the business opportunity - who you are, what you plan to sell or offer, why and to whom.
. Your marketing and sales strategy, which is why you think people will buy what you want to sell and how you intent to sell to them
. Your management team and personnel - your credentials and the people you plan to recruit to work with you.
. Your operations such as your premises, production facilities, your management information systems and IT.
. Financial forecasts - this section translates everything you have said in the previous sections into numbers.

As your business plan is classed as 'working' it means that as your business grows and even expands you can add to your business plan to accommodate new information about the progress and continued success of your business. Doing this means that you can constantly refer back to your plan to ensure that you have kept on top of your objectives and strategies.