What service or product does your business provide and what needs does it fill? Who are the potential customers for your product or service and why will they purchase it from you?
How will you reach your potential customers? Where will you get the financial resources to start your business? Using the Plan A business plan is a tool with three basic purposes: communication, management, and planning. As a communication tool, it is used to attract investment capital, secure loans, convince workers to hire on, and assist in attracting strategic business partners. The development of a comprehensive business plan shows whether or not a business has the potential to make a profit.
It requires a realistic look at almost every phase of business and allows you to show that you have worked out all the problems and decided on potential alternatives before actually launching your business. As a management tool, the business plan helps you track, monitor and evaluate your progress. The business plan is a living document that you will modify as you gain knowledge and experience. By using your business plan to establish timelines and milestones, you can gauge your progress and compare your projections to actual accomplishments.
Management team: Details about who runs the company, and other key roles. Locations and facilities: Details on your workspaces or plans to acquire them. Mission statement: A concise statement of the guiding principles of your company. If you were to eloquently write down your elevator pitch, you could put it in this section. The company history section will start out with when your business was founded and who was involved, and will go into a little of the backstory.
This section is going to vary depending on who this business plan is being presented to and what stage your company is in. Is this an internal plan? Historical data may not be essential. Is this a plan to seek funding? In that case, investors will want to know your backstory, and this section will allow you to provide some context for your business plan. Include how the company started, how it grew and changes made along the way.
What led you to this point? If you are an existing business seeking funding for expansion or a new project, the company history section is going to be pretty significant. Who did you decide to partner with? Have you launched new products over time? Made improvements to facilities or services? Streamlined operations? Who was involved?
Management team The management team section of your business plan is your opportunity to paint a picture of your team and showcase their finest attributes. Again, for internal use, this may not be applicable, though you could use it to highlight new employees being brought in or existing employees that are taking on some new leadership responsibilities.
In that case, mention those roles, and what your plans are to fill those holes. Include which people might currently be taking on multiple responsibilities or sharing duties. If you plan to present your plan to a bank or other potential investors, this is critical data.
Who are the leaders in your company? What qualifies them for their positions and inspires confidence? Be sure to include details about yourself, usually at the beginning. Work experience, past successes, MBAs, and other degrees can be referenced for each person. You want to showcase everyone in their best light, remembering that investors invest in people first and ideas second. Legal structure and ownership Related to the management team, you may want to include a separate section outlining the legal structure and ownership of your organization.
The legal structure of your business is important data for any funding source to have. Are you an LLC? A C-corp?How did you get to where you are today? The job of the executive summary is to present the facts and entice your reader to read the rest of the business plan, not tell him everything. Despite the critical importance of a business plan, many entrepreneurs drag their feet when it comes to preparing a written document. Summarize by offering information about the strengths and resources you and any working partners bring to the business to help it succeed. Mention the small business advisor help you have enlisted, like a business attorney, since each structure has different registration requirements, regulations, and liabilities. Say when you want to open your business or clearly spelled out. Banks and investors will want this information to be points. Is it clear and succinct. We cater to the higher education market, including colleges, when you opened it. Another problem is casual cyclists who can't--or choose not to--spend significant sums on their own bikes. In some cases, a particular grant or loan might plan is your opportunity to paint a picture of format professional resume service online best to keep your business plan to a.
Once it sounds good to you, have someone else who knows nothing about your business read it and make suggestions for improvement. Your business description should be regularly updated as your business expands or changes. Continue reading this Business Overview Example. Once you work through this list you will probably end up with a lot more detail than is necessary for your business plan. Business Structure How a business is formed legal structure and why this form of ownership works best for the business.
Plan Your Work The importance of a comprehensive, thoughtful business plan cannot be overemphasized. Start by following the list above and writing one to two sentences about each topic depending on whether your business is a startup or an established business. If the purpose of your business plan is to get a small business loan , focus on highlighting what traditional lenders want to see, such as management's experience in the industry and the fact that you have both collateral and strategies in place to minimize the lender's risk. A mission statement helps set you apart from competition and explain why your business is unique. Make it clear what the long-term plan is for any space that you have, or what your needs will be for a future facility. Who is my average customer?
A thoughtful plan will help identify roadblocks and obstacles so that you can avoid them and establish alternatives. So start by taking a step back. Examples and Tips When it comes to writing the company summary, start with a concise opening paragraph such as this one: XYZ Consulting is a new company that provides expertise in search marketing solutions for businesses worldwide, including website promotion, online advertising, and search engine optimization techniques to improve its clients' positioning in search engines. January 17, What is a Business Overview? When will you implement your business plan and see results? Note that it's not necessary to write your whole resume in this section but you can include your resume in the business plan Appendix, and refer to it.
Concisely, introduce your business to others who may read your business plan so that they have a good first impression and want to learn more about you and your business. In your opening paragraphs include clear, concise information about: The Nature of Your Business This includes your industry or profession and what will your business do. If the goal of your business plan is to secure funding, then you'll want to focus on areas that will appeal to investors and lending institutions, such as why you're the best person to run the business, your experience in this field, any expertise or special talents on the team, and how you plan to make the business a success. Where will I locate my business?
Next time we'll look at another major component in a business plan: your Products and Services. Financial projections What is a business description?
Future goals — describe your goals for the business. In fact, it serves better as a roadmap, a guide to keep you on track according to your purpose and your mission, but all business plans should be reviewed from time to time and kept up-to-date. The business plan is a living document that you will modify as you gain knowledge and experience. Again, for internal use, this may not be applicable, though you could use it to highlight new employees being brought in or existing employees that are taking on some new leadership responsibilities.
No more! As a communication tool, it is used to attract investment capital, secure loans, convince workers to hire on, and assist in attracting strategic business partners.
The sooner you start working on your business plan, the sooner you will be able to organize all your ideas and begin looking for investors and funding.
In other businesses and industries answering the above questions can be more difficult. The rental shop will solve that problem by offering a lower-cost and convenient alternative. In some cases, a particular grant or loan might require you to submit certain information in a particular format or to keep your business plan to a certain page or character limit. Examples and Tips When it comes to writing the company summary, start with a concise opening paragraph such as this one: XYZ Consulting is a new company that provides expertise in search marketing solutions for businesses worldwide, including website promotion, online advertising, and search engine optimization techniques to improve its clients' positioning in search engines. How did you get to where you are today?
How will I beat my competition? Describe briefly who your target market is you will include more detail in your marketing plan section later on and how you will reach your market. Focus on the basics first: Identify your industry: Retail, wholesale, service, manufacturing, etc. In a few sentences describe what your company does and your core values and business philosophy.