Starting a business involves many different steps to off the ground and heading toward success. To ensure a smooth running business, creating and developing a business plan is of great importance. This document will serve a guide to help you stay focused on your goals and is also a useful tool to attract investors and lenders to provide financial backing. You need to have a sound business plan to accomplish all of this. To prepare an effective business plan, there are several steps that need to be completed to ensure that the plan includes the essential elements.
Write the executive summary of your business plan. Provide important elements of your business by preparing an executive summary. The purpose of this summary is to provide your readers with an overview of your business plan. Consider it as an introduction to your business. Therefore, include information such as your company history and mission statement. This section should also provide a well-rounded synopsis services, products, marketing efforts and financial goals. Although it appears in the first section, the executive summary is usually written after completing the rest of the business plan. Write it last and then use it in the first section if that works better for you.
Write your company description. This is an overview your business. Include your company’s mission statement and list of goals and objectives. Include your company name, location and contact details, as well as your business structure. Briefly state why the company was formed and discuss your customer service philosophy.
Describe your products or service. Provide information on the products or services your business offers. Explain why these products and services will be valued by customers and also successful in your target market. Use simple language when describing and explaining your products and services. Refrain from using acronyms or jargon that may confuse a person interested in the business, particularly investors.
Prepare a market analysis. The marketing section should be impressive. In this segment, you should provide an analysis of the market including distribution channels, any available marketing data and applicable laws. This information is especially important for investors and lenders, because it shows them that you know your prospective market, and that they can entrust you with their money. Also include a plan of how you can exploit the market. This should include a lot of details discussing several different strategies.
Provide a detailed financial analysis. Include your start-up expenses and the amount of money needed. This section can also include graphs, charts and other important documents. Prepare financial statements, including a cash flow statement, an income statement and a balance sheet. Get an accountant to help you prepare financial statements or visit the U.S. Small Business Administration for additional help.
Introduce your management team. Showcase those who run your business on a day-to-day basis. Include information about your management team’s experiences, educations, certifications and skills that relate to your type of business and running a profitable business. This will help you to gain the trust and confidence of lenders and investors.