Business Article - Gathering Information for The Business Plan from Business Route
There are very few real rules when it comes to planning a business plan. Your business plan does not actually have to include any crazy fancy charts, or perfectly written prose in order for it to be the most effective. Unless you are trying to acquire a great deal of funding, or to attract potential key executives, all your business plan really has to be is a solid, well-written road map for your business to follow to success. Your business plan could be as simple as some basic ideas jotted down on paper, or as complex as a 100-page report. Depending on your type of business, either of these types of plans may be effective. The business plan that you create should include all of the following facets in order to be the most effective, no matter what type of business you are creating or what purpose you hope for your business plan to serve.
1 – A brief description of the industry and trends within the industry, and a brief description of the business itself.
It does not actually take hundreds of hours worth of research to come up with the information that should be provided here. Your best bet when writing this section is simply to focus on what your business is meant to do, what industry your business will operate within, and what major trends can be found within said industry, which will impact your business directly, or indirectly in a positive or negative way.
2 – A mission statement for your business.
This section should be short and sweet, mainly focusing on including information relating to the products and services that you will be offering, the people or the businesses that you will be targeting as customers, and whatever values and goals that your business holds dear. No matter what type of business you are running, a mission statement can be a powerful part of your business plan as it speaks to the individuality of your company on a personal level, rather than being filled with facts, figures, numbers and hard-to-follow information. The mission statement can be quite powerful when securing financing, or simply reminding the owners of the company of why they began it in the first place.
3 – A biography for the owners of the company, as well as the investors in the company, the company's advisors, and the company's managers.
You should not have to go crazy when writing this section. You should focus on including primarily the names of all the key players within your company, writing a sentence or two about whatever skills and management experience each person is bringing to the table within your company. You can always attach resumes to the business plan later if you want to include more information about the important people working within your business network.
4 – A brief description of whatever day-to-day operations exist within the company.
This is a great section for explaining how work is going to flow both into and out of your business. You may also want to describe whatever key vendors and suppliers will be relied upon, what products and supplies will be purchased from these vendors and suppliers, and what payment terms will be set up between you and your clients or customers. This section should be kept brief, and is only meant to lightly outline how a day at your business will go. There is no need to put any serious detail into this area of your business plan.
5 – Detail the start-up costs relating to your business.
Do you know how much capital it is going to take in order to get your business up off the ground, or even to lead it to the point where you break even? You should not simply quote a large number in this section, because it will be much easier for your managers and investors to understand the start-up costs associated with the business if you break them down into smaller categories. Put into details how you plan on coming up with the money that you need. There are plenty of options available to you for simple start-up cost worksheets, and you can download free forms off the internet which will make it easier for you to figure out the numbers and costs that you will need. If you outline each cost on an item-by-item basis, it will make it easier for investors and potential investors to understand where their money will go, which makes it easier for them to decide whether or not to invest in your business idea.
6 – Cash flow information.
You should include a simple spreadsheet format that shows how you plan for money to flow in and out on a regular basis in your business. You should project these numbers as best as you possibly can for at least one year and as many as three years. Beyond three years and you might as well be guessing wildly because of how often the business industry tends to change. Cash flow worksheets can be downloaded for free from many online business resources, and there is plenty of information and resources online that will walk you through the process of figuring out the numbers involved with this part of your business plan.
7 – A brief description of whatever qualities or advantages make your product or service unique when compared to other similar products and services within your target market.
You should take the time to explain in detail what makes your business stand out any more than any other competitor within the market. Every company and every product has competition in some form, and securing investing has a lot to do with proving that your product or service is in some way unique from what is being offered by your competitors. What makes your product or service stand out? Why is your company unique to or better than the other companies that you are competing against? If you cannot accurately describe what types of competition exist within your industry or target market, an investor will not be able to take you seriously. That leads us to the next section which has to do with analysing your competitors and competition.
8 – Analysis of competition and competitors within your target market or industry.
You should not have to spend a great deal of time or energy on this part of your business plan, but it is absolutely imperative that you speak about your direct and indirect competitors. You should be able to provide analysis of each of your top competitors, including their individual strengths and weaknesses. You should also be able to analyse your own company as a competitor, to describe how your company stacks up against your competition. If you cannot accurately show that your company is unique or better than the other companies catering to your target market, you must be able to develop a plan to make your products and services more unique, or to otherwise make yourself stand out against the backdrop of other competing companies.
9 – A thorough marketing plan and strategy plan.
You need to be able to sketch out a lot of information relating to your business here, including what price points you have chosen for your products and services, and whatever types of marketing you plan to use in order to connect your company to your potential clients and customers. You also must be able to provide an overall strategy for both attracting business, and for retaining it. In this section you should be as specific as you possibly can, as a lot of details should go into your marketing strategies and plans. Outline as many details as you can related to your pricing and how you arrived at it, your marketing and how you plan to accomplish it, and how you plan to keep customers once you have earned their business.
At this point, you should have a great, well-written business plan that accurately reflects your business, why you are doing business, and how you plan for your business to continue over time. Having a business plan is a powerful tool, because it allows you to follow a roadmap to success, and to provide paperwork that explains your business and business processes to anyone who is interested in working for you or with you, or in investing in your company. When someone can read through a well-written document that describes your company in great detail, it allows them to become better acquainted with your company, which makes it easier to work with you or to invest in you. These are the nine points that you absolutely must be willing to cover when it comes to crafting a well-written and focused business plan for your company. Business plans are important for your business regardless of whether you are just starting a business, purchasing a business, expanding your company, or selling your business. Planning a business in this way will allow you to add a stronger structure and more stable plans for financing and marketing than if you were to run your business without a solid plan.