If your business sells a product, your sales forecast should include the cost of goods sold. If your business will have employees and not just managers, you will need a Personnel Plan showing what types of employees you will have for example, cashiers, butchers, drivers, stockers and cooks , along with what they will cost in terms of salary and wages, health insurance , retirement-plan contributions , workers compensation insurance , unemployment insurance , and Social Security and Medicare taxes.
So how, exactly, do you plan to use any money that lenders or investors offer you? Potential lenders will want to know how and when you intend to repay the loan or line of credit, so you should put together a proposed repayment schedule and terms. Also describe what collateral is available to secure the loan, such as inventory, accounts receivable, real estate, vehicles or equipment. Be aware that lenders do not count the full value of your collateral, and each lender may count a different percentage.
Potential investors will want to know when their investment will pay off and how much of a return to expect. They will also want to see that you have an exit strategy to cash out on your investment — and theirs.
Do you plan to sell the business outright to another individual or company? Hold an initial public offering and go public? What will your exit strategy be if the business is failing? At what point have you determined that you will cut your losses and sell or close down, and how will you repay investors if this happens? Remember, no one has to lend you any money or invest in your company. When they are considering doing so, they will be comparing the risk and return of working with you to the risk and return they could get from lending to or investing in other companies.
You have to convince them that your business is the most promising option. Do You Need One? Describing Your Business Business Plan: Analyzing Your Industry Business Plan: Marketing And Sales Business Plan: Your Financial Plan Business Plan: Presenting Your Plan Business Plan: Structuring Your Financial Plan Begin your financial plan with information on where your firm stands financially at the end of the most recent quarter what its financial situation has looked like historically.
Three Key Financial Statements Your financial plan should include three key financial statements: Lenders and investors want to know what kind of numbers your company is working with and whether your company is profitable or expects to be soon. ET, Monday through Friday. What Goes in a Business Plan? Include a short identification and a description of your business activities. This allows lenders, investors, or partners to reference a specific section of your plan.
Provide a total overview of your plan and outline the steps you will take to start and grow your business. Describe the products and services you offer, your market and pricing strategy, and plans to advertise your business. Outline your specific action items to create and deliver your products and services. Build in metrics to your business plan so that you can use the document internally to help manage your business going forward. Berry recommends that business executives review the business plan regularly to see if they are on track with expectations or to revise those expectations going forward.
Planning is a continuous process. Berry advises that executives revisit the plan once a month. Fill your plan with metrics, measurements and information you can later review. Always include cash flow projections, Berry says. Profits are nice, but you spend cash, not profits.
Planning for an Economic Rebound. Small Business Administration Government-sponsored website for writing a business plan for small and mid-sized businesses. The following are recommended components of your business plan, although the order in which you write and present these sections can be subject to change: This is the abstract of your business plan, a summary of everything you will say in greater detail in the ensuing pages.
It spells out the content and goals of your plan, hitting all the highlights. This section is key if you are seeking outside funding as it introduces possible investors to your business. The company overview is designed to provide more information about your business, why and when it was formed, its mission, business model, strategy, and any existing strategic relationships.
Pinson recommends including this section as part of an Organizational Plan that also covers administrative issues, such as intellectual property you may own, costs associated with your location, the legal structure of your company, management, personnel, and how you address accounting, legal, insurance, and security matters.
If you provide services, describe those services. Make sure to address any new product lines or service lines that you expect to enter into in the future. Marketing Plan and Analysis: In this section, you spell out your marketing strategy, addressing details of your market analysis, sales, customer service, advertising, and public relations.
A business plan is a written description of your business's future, a document that tells what you plan to do and how you plan to do it. If you jot down a paragraph on the back of an envelope describing your business strategy, you've written a plan, or at least the germ of a plan.
Writing a business plan doesn't mean you have to hole away in a library for months compiling plus pages of text. You can create a plan in under a month, working part time. Use a presentation format like PowerPoint or Keynote to save time, and make it easier to share your plan.
Jul 11, · 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%(). Oct 23, · First, you want your business plan to be read (and no one is going to read a page or even page business plan). Second, your business plan should be a tool you use to run and grow your business, something you continue to use and refine over time/5().
Jan 30, · Whether you’re starting or growing your business, you need a business plan. Your plan will provide the roadmap to achieve the success you want. The question shouldn’t be IF you write your plan, but how to write a business plan that will take your company where you want to go. The Company Summary of a Business Plan outlines all the elements of your business. It's designed to give readers, such as investors, a quick and easy understanding of your business, goals, and how your business stands out in the market.