The Real Business Plans

The word business literally means an organized group or entity engaged in corporate, commercial, or other professional pursuits. Businesses may be either for-profit or non-for-profit organizations. Many businesses are large, international, multi-national, or regional in scope. Some businesses are locally owned, operating within a specific geographic area or country. In most cases, small businesses are the majority.

There are several aspects of any business that contribute to its profitability: capital assets, sales revenue, and net working capital. By increasing these three aspects, businesses increase their chances of generating profits and reducing losses. Capital assets include fixed assets such as equipment and property, inventories, goodwill held by the company, and the stock on which the enterprise is based. By increasing sales revenue, businesses reduce the cost of doing business and increase the number of customers who purchase the products or services offered by the business. Net working capital, however, refers to the funds used to operate businesses, including loans, accounts receivable, and accounts payable. A properly executed business plan focuses on these three aspects and includes a strategy for increasing profits and reducing losses.

Businesses that successfully compete in the global marketplace will not only succeed in growing markets but will also profit in proportion to the value of the goods and services they provide. Many businesses that have been around for a while may appear small-scale to some, but to others, they may look just like large multinational corporations. A business plan focuses on establishing a profit for the company while also providing information to the investors about the time it takes to achieve maximum profits.