Business Plans
Also read: Choosing a Name | Start Up Costs | Start Up Finance
Business plans should precisely define your business. It should describe all the details of your company, from the management team, its products or services to its vision, its market and financing plans.
A business plan is sometimes required and scrutinized by any potential lenders as it serves to give them insight into just exactly how you plan to run your company. It is also a good selling document and underlines how you plan to pay back any money that you borrow.
A business plan is your company’s resume, it is there to help you make good decisions regarding the running of your company, it will help you analyze cash flow and deal with any unforeseen complications. It should state clearly your goals, how you are going to market your product or service, who your potential customers are and why you think they will purchase from you. You should be clear as to who your competition is and how you are going to operate.
The business plan is a living document that you will modify as you gain knowledge and experience. It should be a communication tool, used to attract investment capital, secure loans, and assist in attracting good business partners. It should show that the business has the potential to make a profit. It should show that you have worked out all the foreseen problems and have worked out alternatives routes before actually launching your business.
As a planning tool, a business plan should serve to guide you through the various phases of your business.
The following points should all be included in your business plan:
- Description of your business, product or service
- Marketing strategy
- Any competition elements
- Financial data, loan applications
- Capital equipment
- Expected suppliers
- Cost projections
- Profit projections
- Operating procedures
- Management details
