Business plans help you to impress the right people.
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Business plans help you to impress the right people, like investors and venture capitalists. Your plan should clearly show the growth potential of your business and your financial needs.
Here are some tips:
Executive summary
Although it appears first, it’s the last section you write. Keep it as brief as possible and summarise the key elements.
Company/Product overview
Write out your goals. Then explain your company and your product in detail.
Business environment
Who else does what you do and how well do they do it? Do your homework on your competitors and the market you are hoping to reach. Ask questions like “What will the business environment be like in five years time? Ten years time?”
Company strategy
Identify your ideal growth rate and direction and then outline the marketing and operational strategies you will be using to make it happen. Keep your growth rate realistic and use real numbers, dollars and timeframes.
Marketing plan
Decide who will buy your product and why. Give details of your pricing strategy, how you intend to communicate with your target customers and what costs are involved.
Action plan
Identify the key milestones you need to meet along the way. The action plan is not intended to be cast in stone, but is a valuable management tool in operating your business.
Financial plan
Prepare profit and cash flow plans covering short-term (one-year) and long-term (three-year) projections.
Loan repayments
If you are planning to borrow money for your business, provide details of how you intend to eventually repay the loan and when. Although no one wants to think of a business failing, you need to identify and list the assets you intend to put up as security for a loan.