Depending on the type of business, a projected balance sheet may be included. Factors driving industry growth should be emphasized. The strategic plan also discusses the most viable customer groups, and why they were chosen.
Provide projected income statements and balance sheets for at least two or three years.
August Learn how and when to remove this template message The format of a business plan depends on its presentation context. Financial Summary The investor wants to know how much capital you need and how the capital will be used, the three or four largest expenditure categories.
This allows success of the plan to be measured using non-financial measures. Because entrepreneurs usually send the executive summary to prospective investors prior to sending the whole plan, the summary must be written with great care and the ideas must be expressed with great clarity.
The more specific you are about who your customers are or will be, the clearer understanding the reader will have of your sales strategy--how you intend to reach these customers. If a new product is being proposed and time permits, a demonstration of the product may be included.
The summary should run two to three pages in length, four at the most. Operational plans describe the goals of an internal organization, working group or department. Outline pricing and sales information. The financial section should outline: The combined marketplace power of superior products, a favorable industry environment and an extremely talented management team is what investors look for.
Include rationalizations for why your audience will buy your products or services and how you will reach them through marketing and advertising efforts.
A company driven by technological innovation needs different leadership than one driven by customer service. Target Markets Describe the target markets you have selected and why you selected them. The more urgent the need--and the more powerful, quantifiable benefits provided to customers by the product or service -- the greater the chances the company will connect with its customers.
Business plans that identify and target internal goals, but provide only general guidance on how they will be met are called strategic plans. Give the reader a clear picture of why you believe your company has great potential for growth and profitability--which translates into a high return on investment for the investors.
They will see more detailed projections in the full business plan, which they will request because they are impressed with your executive summary. Include all financial information, from startup costs to balance sheets. Even a pure start-up venture may have reached development milestones that make it seem more real.
A critical need motivates a customer to action--spending money on your product or service. The content and format of the business plan is determined by the goals and audience.
This is often used as a teaser to awaken the interest of potential investors, customers, or strategic partners. The elevator pitch should be between 30 and 60 seconds.
Competitive The plan should reflect that the management team has through considerable research developed an understanding of the strengths and weaknesses of its key competitors.
Marketing strategies involve persuading large numbers of customers they should purchase from the company and also making it as easy as possible for the customer to find the product or service--the distribution channels selected.
Excitement and Vision Entrepreneurs are enthusiastic, even passionate, about their ventures, and this must be conveyed to investors through the executive summary.
Once the steps are selected, estimate the financial and human resources needed to accomplish each step.
Also include a table with the most basic financial projections for the next three to five years, revenues, cost of goods sold, operating expenses and pretax profit.
A business plan for a project requiring equity financing will need to explain why current resources, upcoming growth opportunities, and sustainable competitive advantage will lead to a high exit valuation.
An internal business plan is often developed in conjunction with a balanced scorecard or a list of critical success factors. It is common for businesses, especially start-ups, to have three or four formats for the same business plan. Externally focused plans target goals that are important to external stakeholders, particularly financial stakeholders.
In the first paragraph, describe what products and services you offer, what markets you serve, and where your company is located.The executive summary is the first section of your small business plan that is typically written last.
It provides an overview of all of the other sections in the business plan. The length of the executive summary does not need to be overwhelmingly long. The executive summary is your business plan distilled down to its most important core elements.
The summary should run two to three pages in length, four at the most. May 09, · Finally, a business plan is a sales document: It aims to attract professional investors who may only have time for a cursory glance at each idea that crosses their desks.
A business plan is a good way to explore the feasibility of a new business without actually having to start it and run it. A good plan can help you see serious flaws in your business concept. To an entrepreneur creating his first business plan, the task may at first seem overwhelming.
An easy way to begin is to focus on describing the action steps required to build the business -- a. A business plan is a formal statement of business goals, reasons they are attainable, and plans for reaching ultimedescente.com may also contain background information about the organization or team attempting to reach those goals.
Written business plans are often required to obtain a bank loan or other financing.Download