Ensure Your Success – Make A Business Plan
A business plan is a written attempt to convince potential investors that a business will be lucrative and sustainable. A well-written plan is taken more seriously than an investor routine summer fund. It is also recommended that an extra one-page plan accompany your initial business plans to be able to communicate financial information to consultants.
Developing a business plan:
The creation of a business plan is not a practice that is strictly unrelated to getting funding; a business plan can also be used to ensure the success of a company in the future. Business plans are written to provide a plan of action to the desired audience. Using your business plan will allow you to evaluate how you are progressing in terms of planning. Such an analysis allows you to identify potential problems in your company, as well as to be able to meet with potential investors and effectively make an exit, should problems arise.
When you have planned to write your plan, you will want to consider all of the aspects that have presented themselves to you from your business operations through to your desired future. It is a large task and can take months to thoroughly write out a coherent plan. You should always seek the expertise of a professional to help you with all aspects of the project. Even independent professional help may prove to be beneficial if you are not sure which road to take you to generate a well-written and professional business plan.
Here is a sample business plan:
A. Business Plan
B. Additional Information
C. Additional person’s names
D. Specifics of each investor
E. Future products
A sample budget can be helpful to determine the potential profitability of your proposed business. A supporting financial statement can be helpful. A Pro-forma is the projected reality of a business on accounting and profitability above that of actual startup costs. However, a Pro-forma needs to be realistic as well as accurate.
- The first document in your plan is a summary of your business; it should be a one-page summary that describes the entire plan. You are using these summaries as a basis to describe your business and its core of operations.
- The main section of the plan goes into the business and describes where the industry is currently going, coupled with what will be needed to introduce the new company to this market.
- The next section is the description of the competition, their projected location and competitive advantages of your company and how are you going to compete with the top competition. Also your description of the capabilities of your company that compete with the competition.
- The next section should cover a profit and loss statement, why the profit and loss statement is projections, the difference between a plan that provides a projected profit versus a plan that does not performance ratios, growth, and other relevant inhibitions.
- The next section should cover an exit strategy, how will your company proceed after both financial and inherent liabilities are covered.
The goals of the company are described and many details on the project, including financial forecasts, staffing and skills required of the company products and services, and of course a Pro-forma sales projection that shows that the company can make a meaningful profit and remain profitable. You will encourage the potential investor to consider investing in the company. A reasonable timeline is set by the senior team to complete the steps required. An exit strategy should be stated as to how the investors, both a debt and equity recipient will split the proceeds of each capital and how the investors and management team will split ownership.
The business plan provides information to a potential partner, banker, investor, or other interested parties that details the start-up of the company, how the company will operate, what internal mechanisms need to be in place, and other pertinent information that is important to funders.