The financial analysis is the third component of the business plan. If your business is new, this will include projected cash flows, capital expenditures, and the balance sheet.
It will also include forecasts as to when the business will break-even. If you lack business or financial education, it is never a bad idea to enlist the help of an accountant to assist with the financial analysis portion of the plan. The above sections are the broad components of the business plan. These sections in turn break down into the following seven sections, which we will, in order, focus on writing next: Company description, market analysis, organization structure and management, products and services, marketing and sales, and request for funding.
Format your document correctly. Format section titles in Roman Numeral order. Write your company description as the first section. To do this, describe your business and identify the marketplace needs for your product or service. Briefly describe your key customers and how you intend to succeed. Joe's coffee is located one block from the local University, and aims to provide a comfortable environment for students, professors, and downtown employees to study, socialize, or simply relax between classes or meetings.
By focusing on excellent ambiance, close location, premium products, and superb customer service, Joe's coffee will differentiate itself from its peers. Write your market analysis. The purpose of this section is explore and demonstrate knowledge of the market your business is operating within. You should be able to answer questions like, who is your target market? What are their needs and preferences? How old are they, and where are they located? Make sure to include a competitive analysis that provides research and information on immediate competitors.
List your main competitors strengths and weaknesses and the potential impact on your business. This section is extremely important, as it outlines how your business will gain market share by capitalizing on competitor's weaknesses. Describe your company's organizational structure and management. This section of the business plan focuses on key personnel. Include details about the business owners and its management team.
If the owners and managers and have extensive backgrounds in the industry or a track record of success, highlight it. If you have an organizational chart, include it. Describe your product or service. What are you selling? What's so great about your product or service? How will customers benefit? How is it better than your competitors products or services? Do you currently have or anticipate developing a prototype, or filing for a patent or copyright?
Note all planned activities. For example, if you are writing a plan for a coffee shop, you would include a detailed menu that would outline all your products. Before writing the menu, you would include a short summary indicating why your particular menu sets your business apart from others. You may state, for example, "Our coffee shop will provide five different types of beverages, including coffee, teas, smoothies, soda's, and hot chocolates. Our wide variety will be a key competitive advantage as we can provide a diversity of product offerings that our main competitors are currently not offering".
Write your marketing and sales strategy. In this section, explain how you intend to penetrate the market, manage growth, communicate with customers, and distribute your products or services. Will you use sales representatives, billboard advertising, pamphlet distribution, social media marketing, or all of the above? Make a funding request. If you will use your business plan to secure funding, include a funding request. Explain how much money you need to start and maintain your small business.
Provide an itemized summary of how start-up capital will be used. Give a timeline for your funding request. To accurately complete this step, in some cases it might be necessary to hire an accountant, lawyer, or other professional. For one full year, provide monthly and quarterly statements. Each year after that, yearly statements. These documents will be placed in the Appendix Section of your business plan.
Include projected cash flows for at least 6 years or until stable growth rates are achieved and if possible, a valuation calculation based on discounted cash flows. Write the executive summary. Your executive summary will serve as an introduction to your business plan. It will include your company's mission statement and provide readers with an overview of your products or services, target market, and goals and objectives.
Remember to place this section at the beginning of your document. When was the business first conceptualized? What are some notable growth benchmarks? Start-ups will focus more on industry analysis and their funding goal. Mention the company's corporate structure, its funding requirement, and if you will provide equity to investors.
Existing businesses and start-ups should highlight any major achievements, contracts, current or potential clients and summarize future plans.
This is the very last section and it's meant to provide additional information. Potential investors might want to see this information before making a decision. The documents you include here should support claims made in other sections of the business plan.
There should a section clearly outlining the risk factors affecting your venture and your mitigation plans. This also indicates to the reader how well prepared you are for contingencies.
Review your business plan for spelling and grammatical errors. Do this several times before deciding on the final version. Rework or completely rewrite content to ensure it works from the perspective of the reader. This is especially true if you are creating a "presentation plan". Read your document aloud. This allows you to detect if any sentences do not flow together well, and it also makes any grammatical mistakes more obvious. Make a copy and give it to a trusted friend or colleague to proofread and provide feedback.
Create a cover page. The cover page identifies your document and gives it aesthetic appeal and professionalism. It also helps your document to stand out. Your cover page should include: The words "Business Plan" centered in large bold font, along with your company name, company logo, and contact information. Not Helpful 11 Helpful What is a marketing business plan sample for a boutique and fashion store?
Not Helpful 14 Helpful You can start with something small. Business cards, website, or anything that will alert people about your company. Of course, there are skills that you learn on the job and from experience, and not in the classroom. Also, to become a successful entrepreneur, you must have a strong passion for what you do. Without this passion, work can be dreadful and you will be less likely to stick to your business plan and invest the money and time to make your company grow.
These are skills that are not obtained from school; rather, they must be in the business owner to create a lucrative business that they love and are dedicated to. In addition to passion and the drive to succeed, entrepreneurs need a solid understanding of at least the basic business practices, business markets, and business organization. Getting your degree in business management will teach you how to plan your finances strategically to help your business succeed.
More technical skills like this are harder to learn on your own, and are best taught in the classroom. In addition to financing, you will also become familiar with business administration, advertising, sales, and more.
Knowing how to properly brand your company and manage it will go a long way, because new businesses are constantly competing in highly saturated markets. While you might be set on starting your own business, you may not know the exact details of how it will happen or even what field you want to be in. Getting a business management degree will not only equip you with useful knowledge, it will also give you time and a better idea of what you might want to do in the future.
By meeting new people, talking to professors, and learning new things about business, you can also find out more about yourself and your career goals. Attending college before starting your own business is a great idea if you want to build connections and network with people in the industry you plan on entering.
School is an easy way to interact with other students sharing similar career goals. If you enroll in a business management program, you may be able to meet your future business partner who may share the same interest and goals as you!
The more people you know, the better — if you set a good impression to others, they are likely to spread the word about you and your business later. In addition to building a valuable network, a business management degree will give you the credibility you need to advance your career. For example, when you go to ask investors for money, form partnerships, or hire employees, you will be taken more seriously with a degree. As a business owner, you will constantly be learning new things.
There will be challenges to face everyday, and these will help hone your skills at work, and help you grow as an entrepreneur. Having the education is one thing, but there will still be a lot of trial and error involved in developing a business. Since business models, techniques, and markets are constantly changing, those serious about their business are highly encouraged to take refresher courses throughout their career to stay up to date.
In conclusion, while a business management degree is not mandatory to become a successful entrepreneur, it will certainly help make your life easier. When you have to be making plenty of decisions in a time crunch, hire competent employees for your company, manage customers, make sales, lead teams, and manage company finances all at once, it can get overwhelming very quickly.
Having the educational knowledge and foundation will help you get these things done in a more efficient manner because you will already have been taught certain things and how to handle situations.
If you are already an entrepreneur looking to grow your business and stay up-to-date on the best business practices and techniques, you are in luck. You can still pursue an education in business management!
Essential tips and advice on how to write a business plan to grow your business. resources you can turn to for help. With that in mind, jump right in. the entrepreneur to become familiar.
21 Free Sample Business Plans Writing a business plan can be a daunting process. Sample business plans can be very helpful in providing a format for you to build your business plan on.
Break-even analysis allows an entrepreneur to know how much profit he can earn at different sales volumes. Any sales volume or number of units sold exceeding the break even point will result to a profit. By setting various sales volumes that exceed the break-even point, an entrepreneur will know how much profit can be generated at each sales volume. Home Blog How Studying Business Management Can Help Entrepreneurs How Studying Business Management Can Help Entrepreneurs Business management is a growing field, especially with more of the job market turning into freelancing.
How can my business plan assist me in getting funding? HOME; PLANS. Business Plan Advice; How can my business plan assist me in getting funding? there are many situations where working capital and bridging finance can help a business to grow beyond its own, organic abilities. to an entrepreneur, one of the benefits of a business plan is The development of operating strategies for outside evaluators It is important that an entrepreneur.