Writing a Business Plan
How to Write a Killer Business Plan in 5 Steps How to Write a Business Proposal for a Janitorial Service How to Write a Catering Business Plan Writing a Mission Statement Writing a business plan is a must if you need investors help you with financing or a bank lend you a loan. A well-written business plan is half the battle in setting up a new business or expanding an existing one. Lending institutions these days impose much tougher conditions than before for business borrowers. So you need to present an excellent case to convince your investors to risk their funds for your project. Here are the components of a business plan that will help you make your dreams come true: 1) COVER PAGE • HEADLINE: Name of the Project 2) EXECUTIVE SUMMARY A one-page summary of • The product or service in question. This is your “elevator pitch.” Imagine yourself riding an elevator together with your lender. Would you be able to summarize your business in 30 seconds? That’s what should go in here.
• Why this company is uniquely qualified to deliver this product or service • Amount of money requested • Income projection (for 3 or 5 years) • How the investors will get their money back (the Exit Strategy) In the following sections you’ll treat each item at greater length, with supporting materials. But here you just give a short summary and a bird’s eye view of what’s to come. Sometimes this summary includes a Mission Statement as well. 3) THE PRODUCT or SERVICE Explain how you will provide the product or the service for which you’re asking funding.
4) COMPETITION ANALYSIS Research and explain how you’ll beat the competition in your specific market niche. • Profile of competitors If your business is local (e.g., an Italian restaurant on XYZ Street), then you need to justify your business prospects by focusing on immediate local factors. If you have an online business or a brick-and-mortar business with national or international appeal, then you need to focus on online competition, SEO factors, and address a different set of non-local factors that will impact your earnings. Explain how are you going to market this product or service. • Overall marketing goals and marketing calendar
6) MANAGEMENT and STAFF PROFILE Names and backgrounds of the management staff and other company employees who will bring this project to a successful conclusion. Make sure to list their: • Education 7) CASH FLOW PROJECTION Illustrate in tables, charts, and graphs when and how much profit will this enterprise make over the next three years. Some lenders ask for a five year projection. It’s a good idea to break down the first year into monthly projections and then provide lump-sum figures for the remaining years. At a minimum, include the follow items in your projection: • Gross revenue 8) RISK ANALYSIS A business plan that only talks about rosy prospects is not a realistic one and will not be taken seriously. Talking about possible risks and difficulties will show that you've done your homework thoroughly and will raise your stature in the eyes of the investors. It's not a sign of weakness at all. • Will the customers buy your product or use your service? How much they will pay? 9) EXIT STRATEGY How will your investors recoup their investment and make a profit? • Are you planning to have an IPO (Initial Public Offering) for example and go public with the stocks? 10) BACK PAGE • Company logo Have a Great Tip, Photo or Comment About This Topic?Do you have a great tip or photo about this? Something that you believe we should read or see? Contribute and share it today! What Other Visitors Have SaidClick below to see contributions from other visitors to this page...
DIrector - Management Services
Not rated yet 
|
