Learn How To Make A Business Plan With This Step

This is a quick snapshot that captures the essence of your business. What do you plan to achieve, How will you get there, Will you need financial backing, What outcomes will you deliver, All of this and more should be condensed into a brief description - from a couple of sentences to a maximum of 1 page long - that is easily understood and limits the use of insider jargon. You might want to write this section last, after you’ve determined the overall strengths and details of your strategy, but make sure it appears first in your document. Now it’s time to provide more detail. Provide a history of your company and your experience, as well as a look ahead. What industry will your business serve, Describe the nature of your industry now, as well as how you see it in 3-5 years. Identify your target audience. What needs do they have that your company will satisfy, What products and services will you provide to meet those needs, Figure out what sets you apart from - and makes you better than - other companies in your industry.

Your company description is where you list the reasons to believe in your business’ success. Call out specific advantages such as a prime location, expert staff, better system, superior products and services or any other tangible benefit that can differentiate you from your competition. Start by determining the size of your market. Then focus on your competitors and provide an objective summary of each. Now do the same for your business. Never be afraid to show that one of your competitors is profitable; after all, potential investors are going to want to know that your industry is a viable one and that success is not only possible, but probable. Also include any opportunities (and threats) that may potentially affect your progress, as well as any rules and regulations your market has to follow. Prove your business is more than just a good idea by presenting a team of individuals who bring experience, enthusiasm and credibility to the table. Also demonstrate your commitment to these people (capital and expense requirements for the next 3 years) so that potential investors get a feel for your commitment to success.

Profiles of your board members and management team. If you have a board of directors, create a profile for each in order of their position, including how involved they are, their history, how they have contributed thus far and will contribute in the future to your company. Most small businesses don’t have a board, but an unpaid advisory board can provide much-needed expertise and credibility to your business. Organizational structure. One of the simplest and most effective ways to convey the team concept is with an organizational chart. Give a brief description for each person on the chart demonstrating that there’s someone committed to every part of your company’s operational process. Legal information. Are you a sole proprietor, Is your business incorporated, It is a C or S corporation, A general or limited partnership, Here’s where you disclose that type of information, along with the resulting structural descriptions. Describe what your product line is, its specific benefit, how it will meet customer needs and how it stands apart from the competition.

Share its history and where you see it going, including future opportunities and possible barriers. List copyrights, patent filings and other facets of intellectual property here, as well as any existing legal matters such as nondisclosure or non-compete agreements. Market penetration. How do you plan to enter your market, make an immediate impact and gain customers, Growth. Describe the strategy for building your business once it has entered the market, for example branching out, targeting different users or acquiring other businesses. Channels. How will you distribute your product, There are many directions you could go, from original equipment manufacturers to an internal sales force to established retailers. Communication. How will your message build customer awareness, Consider online promotions, printed brochures or catalogs, packaging, public relations and other forms of advertising. How are you going to sell your product, Sales force. If you’re using a sales force, will they be internal or independent, What’s the head count,

How will you recruit, train and compensate those who will be the public face of your business, Retail. How will you get your product to customers, Will you sell products directly to a retail business, Commerce. If you decide to sell through an online presence, make sure it’s thoroughly professional and transactions are completely secure. It should be simple to use, rich in content and hosted by a reputable company with a history of minimal downtime. Is the purpose of your site to gather leads or sell products, Design it with that in mind. Consider hiring a professional website designer; the time you save versus learning how to do it yourself could be well worth it. While your main priority is making the sale, never focus solely on your competition when setting your price. You must also take into account factors like changes in the market, the practical uses for your product and how long it will last. If your small business is self-funded, keep in mind that it’s very important to keep a detailed financial plan, even if you’re not required to validate it with your investors. This is one of the most critical elements of any business plan. Cash flow. Create a comprehensive view of how money comes in and goes out on a day-to-day basis. This will provide an overview of your financial peaks and valleys that have a direct effect on how you pay bills, buy stock, cover unexpected surprises and more. Profits and losses. Otherwise known as an income statement, this is a simple scorecard that shows exactly when sales and expenses happen. By combining elements such as revenue, expenses, capital and costs, investors will have a birds-eye view of how much money your company makes or loses over monthly, quarterly or annual periods. Assets. Tangible objects you own that can be converted to cash. Liabilities. Any debts owed.