If you have a simple concept, you may be able to express it in very few words. Like investors, lenders want to see the plan and will expect the plan to cover the main points. Your business plan is the backbone of your financing proposal. Financial Plan Your financial plan is critically important to investors. Also mention gaps in your team and who you need to hire. Your business life goes by so quickly: a rush of answering phone calls, putting out fires, etc. A business plan is a useful document for any small business owner.
This will allow you to make changes accordingly. In fact, an effective business plan is the opposite; it's a flexible, growing and dynamic tool that can help you think creatively and come up with new solutions for some of your toughest business challenges. . Share selected highlights or your plans with your attorneys and accountants, and, if this is relevant to you, consultants. A useful business plan can be any length, from that scrawl on the back of an envelope to more than 100 pages for an especially detailed plan describing a complex enterprise.
Now you have to lay out your marketing plan. But there are some generally accepted conventions about what a full-blown business plan should include and how it should be presented. At least most people have never heard of it. So, just for a change, let's take a look at the less obvious reasons first and finish with the ones you probably already know about. Use your business plan to help decide what's going to happen in the long term, which should be an important input to the classic make vs. Usually the business plan is a very important part of selling the business. The purpose of your plan also determines its length.
Displacement is probably by far the most important practical business concept you've never heard of. Bankers, venture capitalists and other financiers rarely provide money without seeing a plan. If you're looking for millions of dollars in seed capital to start a risky venture, you'll usually although not always have to do a lot of explaining and convincing. What goals do you have for your business? Who will your customers be? A business plan is a written description of the future of your business. Decide whether you need new assets, how many, and whether to buy or lease them.
Why do you want a business plan? Miniplans of five to 10 pages are the popular concise models that may stand on their own for smaller businesses. What methods will you use to capture your audience? How long should your plan be? Good management requires setting specific objectives and then tracking and following up. Also show your topline financial projections and amount of money you are seeking to raise here. Investors need to see a business plan before they decide whether or not to invest. These include the following: 1. What sets your business apart from the competition? Business plans help you eliminate the gray area because you have to write specific information down in black and white. Less sophisticated investors or friends and family may not require a business plan, but they deserve one.
The rationale for hiring should be in your business plan. Include your full financial projections, including your projected income statements, balance sheets and cash flow statements. This is where you discuss the industry, your business structure, your particular product or service, and how you plan to make your business a success. The plan tells the valuation expert what your business is doing, when, why and how much that will cost and how much it will produce. Customer Analysis Here you will identify who your target customers are and their needs.
Competitive Analysis In this section, identify your competitors and their key strengths and weaknesses. Many business plan presentations are made with PowerPoint decks, using 10 to 12 slides to tell your story. If you're just going to use your plan for internal purposes to manage an ongoing business, a much more abbreviated version may suffice. Think of this as a late-show top 10, with us building up to the most important reasons you need a business plan. In addition, it should identify the milestones you need to accomplish over the next 1-3 years in order to achieve success. I'm surprised how many existing businesses manage without a plan.
Seek investment for a business, whether it's a startup or not. Usually that takes a business plan, as well as a professional with experience. Shouldn't that be in your business plan? This is another new obligation a fixed cost that increases your risk. Share your strategy, priorities and specific action points with your spouse, partner or significant other. That's a great starting point, but you should have at least a miniplan available, especially if you're seeking millions of dollars. Cover Page As simple as this seems, include a cover page with your contact information so potential investors can easily reach you. In truth, you're really just taking a short cut and planning in your head--and good for you if you can do it--but as your business grows you want to organize and plan better, and communicate the priorities better.