Several Factors in Business Plan Writing

A business plan is an essential step for any prudent entrepreneur to take, regardless of the size of the business. Preparing a good business plan is one of the most important things an entrepreneur can do. Another great reason for having a business plan is that it can help you if you are trying to get outside funds for your business. Below are some elements you may include in your business plan:

Financial

You're going to need both operating and startup capital to start a new business and you have no hope of getting any money from established financial institutions such as banks without a well developed business plan. This affordable business plan will define your concept, clarify your potential, identify your financial requirements and detail your financial performance. If you're trying to raise finance from venture capitalists, either corporate investors or angel investors, your business plan will have to present solid financial data and market research in a professional, polished package in chronological order. A sound Financial Plan must include pro-forma balance sheets, income statements and cash flow statements.

Management

A business plan is a tool with three basic purposes: communication, management, and planning. As a management tool, the business plan helps you track, monitor, and evaluate your progress. A business plan can act as a management tool that can help you focus on where you are and where you want to be in the future. The management section should include the names and backgrounds of lead members of the management team and their respective responsibilities.

Market

Market Analysis and Sales Description of the market for your products and services; explanation of how you will be competitive; and a specific discussion of your marketing efforts to generate sales. From there, you can go on to explain how you intend to meet the needs of your market. A detailed description of the market for your products or services, along with competition comparisons, should be provided as well.

Product

If you have products to sell, you'll need to include information about the manufacture of those products. If a new product is being proposed and time permits, a demonstration of the product may also be included. The products and services, marketing and business operations should all closely tie in with business strategy.

Marketing

Marketing is an every day effort; it’s about educating people about who you are, what you do, and how you can solve their niche problems. You'll also need to include how much you plan to spend on marketing. Just like a business plan, you should also have a strategy and plan for your marketing. A key element within the business plan is the marketing plan, which explains marketing strategies that will be used to advertise and promote the products or services.

Summary

The executive summary is an overview of the business plan. Executive summary is usually one page summary of the key points in your plan. The content of the presentation is usually limited to the executive summary and a few key graphs showing financial trends and key decision making benchmarks. The executive summary introduces your business strategy and probably is the most important section for lending institutions. An executive summary is outlining goals and objectives. This section should include a summary of your financial forecasts, with spreadsheets showing the formula you used to reach your projections. This summary is also important as a communication tool for employees and potential customers who need to understand and get behind your ideas.

In short, writing a business plan is the best way to test whether or not an idea for starting a business is feasible, other than going out and doing it. A sound business plan is one of the key elements to secure your capital needs. Writing a business plan is one of the most important aspects of starting a business in today's every changing environment. That is, the exercise of preparing a business plan is critical in helping you gain an understanding of how your business venture will operate in the marketplace.