Learn All of the Steps for Writing a Business Plan
A business plan can make or break any business whether new or old. Starting a new business requires a well-thought out plan to bring the highest chances of success. The plan may also be a key factor in obtaining a business loan to pay for the new enterprise. However, there is a formula to writing one that can help you craft one that works.
The first page opens with your executive summary. Explain the business’ main focus in the mission statement. You should also list a summary of your plans, a short description of services or products offered and the structure of ownership.
The company description portion of your business plan should include information such as the history of the company, the name, the locations and the nature of the business. This is also a good place to go into greater detail on the services and products offered by your company.
Your business goals should be clearly defined in the objective statement. Think big and small in this section. What are the long-term goals that you’d like to accomplish? What are the short-term goals? Use this section to describe why you need and what you plan to do with outside funding. The stated goals can help the lender determine whether to approve the requested funding. Make sure yours is clear and well-defined for the best chances.
The legal structure of the company is listed under the business and management structure section. This section includes any and all owners of the business whether a corporation, sole proprietorship or partnership. List also any key managers and employees of the business.
The products and services section provides the specific details of what your business offers. This information should include the targeted customers, a plan for order filling, pricing models, distribution strategy and more. The marketing and sales plan goes right after further detailing how you plan to sell and market the products or services.
A business plan is not complete without a business financial analysis and financial projections. The financial analysis may be minimal for startups but should be fleshed out as the company grows. The financial projects are critical if seeking outside funding and include past and estimate future profit estimates, sales and expenses.
Crafting a business plan well can ensure that your business starts off on the right foot. It also may help you get the funding to start and grow the business. Reevaluate your plan on an annual basis to ensure it is still working for your business’ growth and needs as they can change with time.