A business plan is an essential document for anyone commencing a new business, already in business and critical for anyone seeking funding from a venture capitalist. The business plan needs to be comprehensive, well thought and should contain sound business reasons.
Better Business Planning
The Secrets Behind Developing A Successful Business Plan
The business plan should prove that the business will generate enough revenue to cover expenses and make satisfactory return for bankers or investors. There are a number of ways of formulating a business plan but there are certain essential sections that they should all contain.
There should be an executive summary of less than two pages at the start of the business plan which sells the plan and highlights its features.
A company summary should be included containing a factual description of the company, its owners and history. There needs to be a section referring to products and or services and their points of difference in the market.
It is essential to include a market analysis providing a summary of typical customers, listing competitors, referring to the market size and the expected growth.
It is important to have a section for strategies and implementation describing how the product will be sold and how the plan will be sold and how the plan will be put into action together with its milestones.
There needs to be a financial plan indicating sales, cash flow and profits. The background of the management team together with their experience and key accomplishments should be contained in a management summary.
Individuals could choose to hire a professional to write a business plan for them or they could attempt to write their own making use of the excellent business planning software or books that are available.
Once funding has been raised and a business is operating the business plan serves as a road map for the business. It is not a static document. It needs to be referred to in order to ensure that the business remains focused, on track and is meeting milestones.