A business plan is a written document that describes your business, its objectives and strategies, your target market and financial projections for your business. This plan will help you set realistic goals and appropriate, to obtain external financing, measure your results, clarify your business needs and establish reasonable financial projections. The business plan is the tool that will allow you to ensure the functioning of your new business to give every chance to succeed.
What is the business plan?
The business plan is essential if you need financial assistance to build your business. For financial institutions and investors perceive you as a good candidate in terms of sustainability, you must show that you have absolute control of all aspects of your business, more explicitly demonstrate its ability to generate profits.
Besides the objective to satisfy lenders and investors, creating a business plan is an essential exercise to facilitate the development periods of growth and progress of your business. The success of your business depends on your intuition just the future.
How do you produce a positive cash flow?
How will you stay in business during tough times?
Who are your competitors? How do you coexist?
What is your target market?
These are just some examples of questions that your business plan should answer. It will show you the way that your company has to borrow.
When should I write a business plan?
The sooner the better! However, it is never too late to prepare a business plan and, once written, it becomes a living document that must be updated regularly. It is important for you to think of all the relevant factors and your consideration as soon as possible, to avoid any surprises later.
Who should write my business plan?
It is you, the entrepreneur, who must write your business plan. This is your business and, therefore, your business plan, so it is you who must take the initiative to write it. Please feel free to ask for outside help with your management team, advisors, accountants, bookkeepers, editors and / or others’ experience.
What are the current guidelines to prepare a good business plan?
Define your specific corporate objectives: Think about the person who will read your plan. The objectives will help you determine how you should focus on different parts of your plan.
Make relevant research: A business plan is effective only insofar as we have done extensive research that requires its development. You will, for example, do some research to learn more about your industry, potential customers, competitors, sales and costs of doing business.
Show drafts of your plan to others: It can be very useful to get feedback from various people on your draft plan, both those involved in your business that others are not.
Write Your Own Business Plan: A common mistake is to copy too much information from a model business plan. Your plan should represent your goals and should read a good story, with well articulated sections to demonstrate why your business will flourish. Business plans which borrow too much information to other plans tend to be disjointed, with some sections that contradict each other and key issues ignored.
Make sure your financial projections are credible: For many readers, the section on finance is the most important part of the business plan, because it shows your financial needs and shows the profit potential of your business. In addition, a good financial plan will convince the reader that you really know your business. Do not forget to check each of your predictions is reasonable. If you are overly optimistic and do not take into account all the costs that will require the operation of a business, your business plan will not be credible.
Write the summary last: The summary may be the most important section of your business plan because it will be read first and could even be the only party to be. The key to a good summary is that it should be short (no more than two pages), it should highlight the important elements of your plan and should encourage readers to look with enthusiasm to your company.