· In many ways, writing a business plan is an end in itself. The process will teach you a lot about your business that you are unlikely to Estimated Reading Time: 10 mins PUTTING YOUR BUSINESS PLAN TOGETHER 23 KEEPING YOUR BUSINESS PLAN CURRENT Making Revisions 23 Implementing Changes 23 Anticipating Problems 24 REFERENCES 24 APPENDIX: INFORMATION RESOURCES 25 _____ INTRODUCTION There are two main purposes for writing a business plan. The first, and most important, is to serve · Trusted family and colleagues can offer insight that will improve your business plan (and thus, your actual business). At the very least, an editor or proofreader can ensure that your plan is ready to be distributed in a professional manner
Write your business plan
A business plan is also a road map that provides directions so a business can plan its future and helps it avoid bumps in the road. The time you spend making your business plan thorough and accurate, and keeping it up-to-date, who can do my business plan, is an investment that pays big dividends in the long term. Your business plan should conform to generally accepted guidelines regarding form and content. Each section should include specific elements and address relevant questions that the people who read your plan will most likely ask.
Generally, a business plan has the following components:. Title Page and Contents A business plan should be presented in a binder with a cover listing the name of the business, who can do my business plan name s of the principal saddress, phone number, e-mail and website addresses, and the date. You don't have to spend a lot of money on a fancy binder or cover, who can do my business plan. Your readers want a plan that looks professional, is easy to read and is well-put-together.
Include the same information on the title page. If you have a logo, you can use it, too. A table of contents follows the executive summary or statement of purpose, so that readers can quickly find who can do my business plan information or financial data they need. Executive Summary The executive summary, or statement of purpose, succinctly encapsulates your reason for writing the business plan.
It tells the reader what you want and why, right up front. How will you repay your loan, and over what term?
Would you like to find a partner to whom you'd sell 25 percent of the business? What's in it for him or her? The questions that pertain to your situation should be addressed here clearly and succinctly. The summary or statement should be no more than half a page in length and should touch on the following key elements:. Description of the Business The business description usually begins with a short explanation of the industry.
When describing the who can do my business plan, discuss what's going on now as well as the outlook for the future. Do the necessary research so you can provide information on all the various markets within the industry, including references to new products or developments that could benefit or hinder your business, who can do my business plan. Base your observations on reliable data and be sure to footnote and cite your sources of information when necessary.
Remember that bankers and investors want to know hard facts--they won't risk money on assumptions or conjecture. When describing your business, say which sector it falls into wholesale, retail, food servicemanufacturing, who can do my business plan, hospitality and so onand whether the business is new or established. Then say whether the business is a sole proprietorship, partnership, C or Sub chapter S corporation.
Next, list the business' principals and state what they bring to the business. Continue with information on who the business' customers are, how big the market is, and how the product or service is distributed and marketed.
Description of the Product or Service The business description can be a few paragraphs to a few pages in length, who can do my business plan, depending on the complexity of your plan. If your plan isn't too complicated, keep your business description short, describing the industry in one paragraph, the product in another, and the business and its success factors in two or three more paragraphs.
When you describe your product or service, make sure your reader has a clear idea of what you're talking about. Explain how people use your product or service and talk about what makes your product or service different from others available in the market.
Be specific about what sets your business apart from those of your competitors. Then explain how your business will gain a competitive edge and why your business will be profitable.
Describe the factors you think will make it successful, who can do my business plan. If your business plan will be used as a financing proposal, explain why the additional equity or debt will make your business more profitable.
Other information to address here is a description of the experience of the other key people in the business. Whoever reads your business plan will want to know what suppliers or experts you've spoken to about your business and their response to your idea.
They may even ask you to clarify your choice of location or reasons for selling this particular product. Market Analysis A thorough market analysis will help you define your prospects as well as help you establish pricing, distribution, and promotional strategies that will allow your company to be successful vis-à-vis your competition, both in the short and long term, who can do my business plan.
Begin your market analysis by defining the market in terms who can do my business plan size, demographics, structure, growth prospects, trends, and sales potential.
Next, determine how often your product or service will be purchased by your target market. Then figure out the potential annual purchase. Then figure out what percentage of this annual sum you either have or can attain. Keep in mind that no one gets percent market share, and that a something as small as 25 percent is considered a dominant share. Your market share will be a benchmark that tells you how well you're doing in light of your market-planning projections.
You'll also have to describe your positioning strategy. How you differentiate your product or service from that of your competitors and then determine which market niche to fill is called "positioning. A positioning statement for a business plan doesn't have to be long or elaborate, but it does need to point out who your target market is, how you'll reach them, what they're really buying from you, who your competitors are, who can do my business plan, and what your USP unique selling proposition is.
How you price your product or service is perhaps your most important marketing decision. It's also one of the most difficult to make for most small business owners, because there are no instant formulas. Many methods of establishing prices are available to you, but these are among the most common.
You'll also have to determine distribution, which includes the entire process of moving the product from the factory to the end user. Make sure to analyze your competitors' distribution channels before deciding whether to use the same type of channel or an alternative that may provide you with a strategic advantage.
Finally, your promotion strategy should include all the ways you communicate with your markets to make them aware of your products or services. To be successful, your promotion strategy should address advertising, who can do my business plan, public relations, who can do my business plan, sales promotions and personal sales.
The first step in a competitor analysis is to identify both direct and indirect competition for your business, both now and in the future. Once you've grouped your competitors, start analyzing their marketing strategies and identifying their vulnerable areas by examining their strengths and weaknesses.
This will help you determine your distinct competitive advantage. Whoever reads your business plan should be very clear on who your target market is, what your market niche is, exactly how you'll stand apart from your competitors, and why you'll be successful doing so. Operations and Management The operations and management component of your plan is designed to describe how the business functions on a continuing basis.
The operations plan highlights the logistics of the organization, such as the responsibilities of the management team, the tasks assigned to each division within the company, and capital and expense requirements related to the operations of the business. Financial Components of Your Business Plan After defining the product, market and operations, the next area to turn your attention to are the three financial statements that form the backbone of your business plan: the income statement, cash flow statement, and balance sheet.
The income statement is a simple and straightforward report on the business' cash-generating ability. It is a scorecard on the financial performance of your business that reflects when sales are made and who can do my business plan expenses are incurred.
It draws information from the various financial models developed earlier such as revenue, expenses, capital in the form of depreciationand cost of goods.
By combining these elements, the income statement illustrates just how much your company makes or loses during the year by subtracting cost of goods and expenses from revenue to arrive at a net result, which is either a profit or loss. In addition to the income statements, include a note analyzing the results. The analysis should be very short, emphasizing the key points of the income statement. Your CPA can help you craft this. The cash flow statement is one of the most critical information tools for your business, since it shows how much cash you'll need to meet obligations, when you'll require it and where it will come from.
The result is the profit or loss at the end of each month and year. The cash flow statement carries both profits and losses over to the next month to also show the cumulative amount. Running a loss on your cash flow statement is a major red flag that indicates not having enough cash to meet expenses-something that demands immediate attention and action. The cash flow statement should be prepared on a monthly basis during the first year, on a quarterly basis for the second year, and annually for the third year, who can do my business plan.
The following 17 items are listed in the order they need to appear on your cash flow statement. As with the income statement, you'll need to analyze the cash flow statement in a short summary in the business plan. Once again, the analysis doesn't have to be long and should cover highlights only. Ask your CPA for help. The last financial statement you'll need is a balance sheet.
Unlike the previous financial statements, the balance sheet is generated annually for the business plan and is, more or less, who can do my business plan, a summary of all the preceding financial information broken down into three areas: assets, liabilities and equity.
Balance sheets are used to calculate the net worth of a business or individual by measuring assets against liabilities. If your business plan is for an existing business, the balance sheet from your last reporting period should be included. If the business plan is for a new business, try to project what your assets and liabilities will be over the course of the business plan to determine who can do my business plan equity you may accumulate in the business.
To obtain financing for a new business, you'll need to include a personal financial statement or balance sheet, who can do my business plan. In the business plan, you'll need to create an analysis for the balance sheet just as you need to do for the income and cash flow statements.
The analysis of the balance sheet should be kept short and cover key points. Supporting Documents In this section, include any other documents that are of interest to your reader, such as your resume; contracts with suppliers, customers, or clients, letters of reference, letters of intent, copy of your lease and any other legal documents, tax returns for the previous three years, and anything else relevant to your business plan.
Some people think you don't need a business plan unless you're trying to borrow money. Of course, it's true that you do need a good plan if you intend to approach a lender--whether a banker, a venture capitalist or any number of other sources--for startup capital. But a business plan is more than a pitch for financing; it's a guide to help you define who can do my business plan meet your business goals.
Just as you wouldn't start off on a cross-country drive without a road map, you should not embark on your new business without a business plan to guide you.
A business plan won't automatically make you a success, but it will help you avoid some common causes of business failure, such as under-capitalization or lack of an adequate market. As you research and prepare your business plan, you'll find weak spots in your business idea that you'll be able to repair.
You'll also discover areas with potential you may not have thought about before--and ways to profit from them. Only by putting together a business plan can you decide whether your great idea is really worth your time and investment. Video Webinars Start A Business Subscribe Books.
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HOW TO WRITE A BUSINESS PLAN STEP BY STEP + TEMPLATE - 9 Key Elements
, time: 13:399 Ways to Use Your Business Plan - blogger.com
For example, your bank will be interested in how you intend to repay the loan or overdraft, what you intend to do with the money and how it will help your business grow. Potential investors will also want to see the expected return and sources of funding, while shareholders are looking for the prospect of the share price and what dividend they can expect on their blogger.comted Reading Time: 5 mins A business plan is also a road map that provides directions so a business can plan its future and helps it avoid bumps in the road. The time you · Trusted family and colleagues can offer insight that will improve your business plan (and thus, your actual business). At the very least, an editor or proofreader can ensure that your plan is ready to be distributed in a professional manner
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