The business plan is not only important to start a business or for fund-raising, but critical to running a business. This will help you stay on a specific course or alert you to a situation when the object is not to force you to plan and take action.
GIVE THE STRUCTURE OF THE PLAN
The following may help you decide what to go, and provide a structure for your plan:
- What is the nature of your business?
- What is the market?
- Line of business potential
- Management Team
- Profit forecast figure
- How much money is needed?
- What are the prospects for the investor / lender?
MAKE YOUR PLANS FOR THE INTENDED PURPOSE
However, you can have a different purpose for writing your plan to find out what needed to be in. If you are developing a plan for your reference only and not for outsiders, and then, for example, information should include the basics of business.
“Ma-clear to your audience. Description of the management team is very important for investors, while financial history is most important for banks, “says Tim Berry, founder of Palo Alto, which makes business planning software.
DISPLAYS EACH PART OF YOUR BUSINESS PLAN
The business plan should be a persuasive tool, especially if used to raise external funding. You need to convince anyone that reads your plan to continue turning the pages.
Focusing on what is interesting about their business prospects as a potential source of revenue and customer base, and again this exact numbers and scrutiny. Remember that investors and banks are inundated with business plans, and you will have the chance to read if it stands – but do not fall into the trap of making a real image or statement. His plans and figures should balance between optimism and realism.
Business plans can easily damage so that the assumption that each of them must be justified, not once, but again and again. It is a good idea to ask a friend to separate, to ensure that you are prepared with facts and figures to support his claim.
According to Berry, with specific details to give credibility to the company, and shows how committed they are.
“The plan is uncertain, as it. Include milestones to be achieved, the date on which it occurred, and successful marketing activities. The implementation details are very important, “advises Berry.
Presentation is also key – should be written your plan carefully presented and easy to read. The computer program will help you create and experiment with different versions forecasting.
FINANCIAL FORECASTS IN YOUR BUSINESS PLAN
The more money you need to raise, the financial details were to enter a period of greater and include, for example, cash flow forecasts, projections and estimates could benefit balance.
According to Berry, the standard business plan will include forecasts for the next three years, with monthly financial details for a year.
“A common mistake that people make is to try to make a monthly information that lasted four years, which may lead to less and less, because you can never be sure what will happen next four years, “said Berry.
It is a good idea to have an estimate of what might happen if things do not go to the ground, as it shows that you thought about the downside. But the use of the size of the rating, and do not want to be too pessimistic plan. Much of this depends on the nature of your business and on stage. If it is a new business, much of it is based on what you think might happen, with an established business, hold the record for reference.
KEEP IT SIMPLE
A perfect format to write your business plan, if you are using, is between three and ten pages of text is from the important points, and a series of financial figures. Should confine the excessive use of detail in marriage.