Learning how to create a good business plan is an important step toward operating a successful business. A business plan will not only provide guidance as you run your business, but will serve as a useful tool to potential lenders and investors. You can learn how to write an effective business plan that will move your business to success.
Creating a business plan can be exciting and fun, yet some people find it difficult and stressful. That’s because they don’t have the right information on how to write it. A good business plan is written in a certain format and contains the essential elements that make up a solid business plan.
Prepare the executive summary. While appearing first, the executive summary is written last. Use this section of your business plan to summarize all the aspects of your business, including your business history and mission statement, products and services, the marketing and your customer, your competition. Describe your location where you operate business and provide information about your key personnel. Finally, briefly talk about your financial projections and goals for the business.
Describe your company.
Provide a brief history of your company including its mission, location and ownership. If you have an already existing company, you can also provide an overview of past profits and financial information. You should also discuss new and exciting projects you plan to execute once funding becomes available. Let your excitement and passion show in the company description section as you write about why you started the company and the goal you hope to attain.
Give the details of your product or service. Describe the product or service you are selling and why people will want to purchase it. Make sure you highlight what makes your service or product better than the competition. Keep it simple when describing your products and services so even the layman can understand what your product is all about. Remember you are the expert, but those reading your plan may have little or no understanding of your industry’s acronyms and jargons.
Analyze your target market. Provide information about the market in which you plan to compete. Discuss how you will reach your potential customers. Explain whether you will be pursuing radio, print, television and Internet advertising, and if so, what you are planning to spend for all of these advertising media. Determine who your competitors are, and how you will beat your competitors in the marketplace.
Develop your financial plan. For the financial section, include the startup costs of the business, the ongoing costs of running the business and your expected expenses and revenue. Also provide supporting financial information on in the form of budgets and cash flow statements, income statements, and other relevant documents.
Introduce your management team. Showcase the key personnel in your company and their backgrounds. Provide information that includes the credentials, experience, accomplishments and skills of the management team and how these will be of benefit to your company.
There are different options for creating your business plan. Many people start out creating the business plans themselves, without seeking outside help. If you feel that you need help creating a business plan you may consider using business plan templates. Using business plan templates is a great way to quickly craft hard-hitting plans that really get the job done. You can look online and find a good business plan template to work from.