Home Business Planning What is in your business plan…..if you have one.
What is in your business plan…..if you have one.

What is in your business plan…..if you have one.

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Preparing a Business Plan

A good business plan is critical to every business. It is essential in raising debt or equity capital unless you are financing purely on your personal credit. At least as important to you as a business owner, however, is utilizing a written business plan as a blueprint to start, run and grow your business successfully. Keep in mind that the businesBiz Plans plan is a living document. It needs to be updated on a regular basis, forcing you to think about new issues facing your business.

A good business plan demonstrates to the reader (Lender, Investor, etc.) that you understand your business – – the potential, the operations and the risks. It must be prepared in a manner that is not only convincing, but is also simple and easy to follow. While there is no standard format for a good business plan, the outline below covers the basics in an organized and logical manner.

Outline

I. Executive Summary

A one to two page condensed version of the whole plan. This is the first item the reader should see, but the last item that you prepare.

II. History of the Business

Background on the industry and how your company fits into the industry as a whole. Site trends and statistics. Compare and contrast your plan with others in the industry.

III. Analysis of the Market and Competition

Cite facts and figures. Size of market in total, by region, by market category. Who are the competitors? Are they profitable? Will the market support you and the competition?

IV. Business Description

What do I need to know to understand your business? How long have you been in business? What are your locations? What is your legal form of business? Describe in detail your products and services and what makes them marketable.

V. The Management Team

Who runs the business and what makes them qualified? If non-employees such as accountants or consultants help you run the business, make this fact known.

VI. The Operating Plan

Complete discussion of facilities, staffing and processes.

VII. The Marketing Plan

Describe the customer, the distribution channel, pricing strategies and communication vehicles.

VIII. Discussion of Business Risks

Every business has risks. Communicate your understanding of those risks which might include actions by competitors, regulatory changes, inability to get product to market on time, misunderstanding of customer demand, etc.

IX. Use of Proceeds

Any lender or investor will want to know how you will use their money. Your needs for cash should be detailed as to such items as building/equipment purchase, debt repayment, working capital for funding growth, etc.

X. Financial Statements

Three years balance sheets and income statements if your company has been in business that long. Consider having these prepared by an accounting firm.

XI. Financial Projections

Five years of projected balance sheets, income statements, and cash flows. Be sure to reflect repayment of debt being sought.

XII. Appendices

For more information contact George: George@GeorgePAnderson.com

Article compliments of GoSmallBiz.com

 

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George P. Anderson

George has enjoyed a 33 year career in the Fire Service as a Firefighter/Paramedic. He currently serves as a Captain in the Houston Fire Department. Throughout his career George has worked for small businesses and has been a small business owner to supplement his public service income.

As a small business owner George networks with, and has developed relationships with other small business owners and has had the opportunity to learn about the challenges of small business ownership in today’s market and economy. George has researched and brought together a portfolio of resources to help small business owners have access to the help, tools, information, consulting, and resources that traditionally only large businesses have been able to access and afford.

George’s philosophy is to make your life just a little bit better whenever and wherever he can. He calls this “Extreme Customer Service”. George’s greatest asset is his experience in solving problems and making the right decisions in intense situations, on the fire ground, however that skill translates to his business projects also, with a lot less pressure. He is an avid reader and an avid student.

George attends as many seminars, classes, and webinar’s as his schedule permits. He is an aspiring author; look for his book “What Should Dad’s Teach Their Daughters” in the near future.
George is also a certified Social Media Strategist, and a Certified Small Business Specialist. He has been recognized as a top producer by his company for the last 6 years. He is the proud Dad of an incredible daughter who is a sophomore in college; “she is my greatest accomplishment” states George.

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