Use organization charts to clearly spell out the roles of key management people and the proposed size of your organization.
You should include information on how you plan to recruit and maintain your employees or handle outsourced work. Do an assessment of the company's needs with regard to premises and capital goods such as machinery, technological equipment. Be sure to modify your information depending on your target audience. For example, your bank will be interested in how you intend to repay the loan or overdraft, what you intend to do with the money and how it will help your business grow.
Potential investors will also want to see the expected return and sources of funding , while shareholders are looking for the prospect of the share price and what dividend they can expect on their shares. Generally, lenders, shareholders and investors want facts and figures that back up what you say.
Address issues such as taxes, liability concerns, information on proprietorships, partnerships, limited or incorporated companies. If you're buying an existing business , be sure to clarify buy-and-sell agreements. Keep in mind that you should have a lawyer look over all contracts and legal issues. It helps to write this last; a page or two of highlights is sufficient. Be sure to clarify whether this is a new business venture, an expansion of an existing business or the purchase of a new business.
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Search articles and tools. How to write a business plan. Make it thorough but keep it simple Many entrepreneurs may see putting a business plan together as a daunting task involving hundreds of pages. Here's the core content that you should consider. Your business proposal Include a description of exactly what you're proposing.
It says who you are, describes your business and shows how you will become profitable. A properly formulated plan can help you gain the confidence of lenders, investors and other stakeholders.
BDC's article " How to write an effective business plan " provides a brief outline of the key elements of a plan. You can also read our article on common mistakes to avoid when building your business plan.
The Canada Business Network also offers a guide to writing your business plan as well as good examples of industry specific business plans. Your business plan has to be backed by facts and research to hold up to scrutiny. Secondary sources will consist of statistics and trends about your market and your customers. Industry publications, associations, think tanks and university research are also good sources of information. Primary sources include surveys, personal interviews and focus groups.
These can provide you with insights into the attitudes and behaviours of your target customers. Make sure to survey more than your personal network of friends and family when conducting your research. Like the rest of your business plan, your market research should be periodically reviewed and revisited anytime you need to make major business decisions. Setting goals for your business will help you to get your team focused and taking action to achieve your vision. Your goals can deal with every aspect of your business plan.
You should include information about:. This section of your business plan essentially turns your plans into numbers. As part of any business plan, you will need to provide financial projections for your business. Your forecasts should run for the next 3 to 5 years. However, the first 12 months' forecasts should have the most detail, including assumptions both in terms of costs and revenues, so investors can clearly see the thinking behind your numbers.
As you put your plans down on paper, remember the importance of thinking objectively. Analyzing your venture from three points of view — optimistic, pessimistic, and realistic — can give you a solid idea of what to expect as you move forward. Your forecasts should cover a range of scenarios, and you should include the contingency plans you've developed to offset any risks.
You can also review benchmarks and averages for your type of business and discuss your business' position. Early planning will give you the opportunity to consider all of your options, including strategies that may take time to implement.
For example, if you plan on passing your business on to your children, you'll need sufficient time to train them and integrate them into your business. Once you considered your options and set objectives, it's time to add an exit strategy to your business plan. Although you may not be exiting your business for some time, a solid strategy will be a roadmap to your future goals. You'll want to thoroughly review your plan once it's done.
Try to avoid using jargon — the person reading your plan may not understand your businesses as well as you do. You can ask friends, family, associates, and mentors to review it.
Writing your business plan. From Innovation, Science and Economic Development Canada. Although business plans vary in terms of length and scope, all successful business plans contain common elements. The plan should take into consideration your particular business and its environment.
For more information on writing your business plan and other business topics, contact Canada Business Ontario today. Telephone services are available in English or French.
Business Plan Writer. Our interactive Business Plan Writer has been designed to simplify the business planning process. Not only is this tool dynamic, allowing you to customize your plan, we’ve also provided tips & tricks and plenty of examples to guide you as you write. The Canada Business Network also offers a guide to writing your business plan as well as good examples of industry specific business plans. Obtain supporting information You’ve probably already conducted informal market research on your own.
Writing a Business Plan. Your business starts with an idea. To turn that idea into a profitable company, you need to be able to explain it to potential investors, bankers and other professionals. Jul 11, · Expert Reviewed. How to Write a Business Plan for a Small Business. Three Parts: Preparing To Write Your Business Plan Writing Your Business Plan Finalizing Your Business Plan Community Q&A A business plan refers to a written document that comprehensively outlines what your business is, where it is going, and how it will get there%().