Step 23: Write a Business Plan
The Concept:
A written business plan is a blueprint for success and is highly recommended even if you are not seeking outside financing.
What you need to know:
At this point your business planning should be almost complete. Now is the time to take all the information that you have gathered and compile it into a written business plan. The plan is significant for you because it involves research that helps you gain a thorough understanding of your business and what it takes to run it. You will know what to do to make and keep your business successful.
Others who review your plan – namely investors -- will expect it to be in a certain format when you present it so that most of their questions are answered. A business plan is organized and presents all information – be it 5 pages or 55 pages -- succinctly and logically. The length is not the key as long as you are certain to address the following areas:
Cover Letter: If you seek financing, note the amount of funding requested, collateral, the purpose of the loan, and source(s) of repayment.
Reference: Assess Financial Situation, Compile Business Budgets.
Table of Contents: Readers should be able to quickly locate the desired information in this essential element.
Executive Summary: This section should be written last and may be combined with the cover letter. Keep it short and sweet. It includes:
• Business name
• Location and facility description
• Product or service
• Market and competition
• Management and business goals
Reference: Define Idea, Assess Self, Market Strategy.
Products and Services:
• Description of product line or services
• Uniqueness of the product or service
• Product/service comparison
Reference: Idea, Market Research.
Manufacturing Process: (if applicable)
• Materials
• Sources of supply
• Production methods
Reference: Technology, Personnel, Equipment, Quality Control, Inventory, Market Research, Regulatory.
Market Analysis:
• Description of full market
• Industry trends
• Target market
• Competition
Reference: Market Research, Breakeven Point.
Marketing Strategy:
• Overall strategy to market your product or service
• Pricing policy
• Methods of selling, servicing, distributing
Reference: Marketing Strategy, Location, Technology, Personnel.
Management Plan:
• Form of business organization (legal entity)
• Board of directors (if corporation)
• Company officers/responsibilities
• Resumes of key personnel/professional advisors
• Staffing plan/number of employees
• Facilities plan/planned improvements
• Management systems
Reference: Assess Self, Technology, Personnel, Equipment, Quality Control, Inventory, Professional Advisors, Legal Entity, Licenses, Proprietary Issues, Taxes, Accounting Systems, Regulatory, Location, Insurance.
Financial Projections:
• Cash flow
• Profit and loss statement
• Balance sheet
• Explanation of budgets
Reference: Budgets, Breakeven Point.
Does your business work together as a whole? |
