Business Plan Writing Tips: 9 Crucial Aspects you shouldn’t Miss

Posted: October 3, 2011 in Growing your Business
Tags: , , , ,

Are you thinking about a putting up a business? Do you have a plan in mind? If you haven’t written your business plan yet, then your dreams are still in the fantasy stages. This may seem pretty harsh but it is how it works in reality. A business plan is used by lenders and financial institutions in deciding whether to lend you money or not. It also serves as a guide to help you and your employees assess company success and make decisions about the things that you need to do first or last. Here are 9 things that you should never miss when writing a business plan.

  • Executive summary. This summary should be able to introduce your business strategy, goals and objectives. If you are not able to convince the loan officer in the initial pages that you have a viable plan, then expect to leave empty handed.
  • Company history. This part clearly outlines the history of the company’s creation and how you and your partners came up with the business idea.
  • Company goals. Include the short term and long term goals of your company. Who are your targeted customers? How fast do you think it will progress?
  • Biographies. Include the names and professional backgrounds of the members of the team and their responsibilities.
  • Service or product. Discuss how your product or service stands out from all the other commodities in the market.
  • Market potential. You have to convince employees, lenders and others that your target market is huge and rapidly growing. If you are planning a local business, assess the demand for your product/service within an X-mile raidus. If it is an online business that depends on Internet traffic, evaluate the demand on a local and global basis.
  • Marketing strategy. How will you tell the world about your business? Will you advertise in television, print or online? Don’t forget to include a budget for your marketing plan.
  • Three or five year financial projection. This will include your financial forecasts using spreadsheets with formulas to reach your projection. Balance sheets, cash flow projections and income statements. If you are not sure about this type of finance modeling, invest in good financial planning software.
  • Exit strategy. This section includes the benchmarks that will help you decide when to call it quits. This can be based on revenue growth, a dollar figure or consensus among decision makers.

If you are planning to start a home business, then a few of these tips may not be useful, but make sure to draft a plan that states your goals, finances, exit strategy, and marketing plan. The business plan is necessary for the success of a business. If you don’t know how to make one, don’t hesitate to ask business plan service provider.

 

 

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