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How To Prepare A Business PlanTip! Financial data should be referenced in the Business Plan or as handout; not as a slide. Firstly, let's define a small business plan. A small business plan is a summary of how a business owner, manager, or entrepreneur intends to organize an entrepreneurial endeavor and implement activities necessary and sufficient for the business to succeed. It is a written explanation of its business model. Business plans are used internally by management and are also used to convince outsiders such as banks or venture capitalists to invest money into a small business.
Business plans often quickly become out of date. One common belief within business circles is that the actual plan may have little value, but what is more important is the process of planning, through which the manager gains a greater understanding of the business and of the options available. Here's An Example Of A Business Plan Most business plans can be seen as a collection of 'sub plans' including a marketing plan, financial plan, production plan, and human resource plan. Tip! A Business Plan will help convince both you and the Bank of the project's feasibility and viability. The business plan has many forms. There is a format that is typical: * Executive summary - explains the basic business model - gives rationale for the strategy * Background - gives short history of company (unless it is a new company) - provides background details such as: age of company number of employees annual sales figures location of facilities form of ownership including - sole proprietor - partnership - entrepreneurial startup - private corporate startup - publicly traded corporation Tip! Executive Summary. The Executive Summary provides a succinct synopsis of the business plan, and highlights the key points raised within. - limited liability company - public utility - Non Profit Organization - background of key personnel including owners senior managers head scientists and researchers * Marketing & Sales - the macro environment - the competitive environment - the industry - the customers priorities - product strategy - pricing strategy - promotion strategy - distribution strategy * Production and Manufacturing/Operations - describe all processes - production facility requirements - size, layout, capacity, location - inventory requirements - raw materials inventory, finished goods inventory, warehouse space requirements - equipment requirements - supply chain requirements - fixed cost allocation * Finance - source of funds - existing loans and liabilities - projected sales and costs - break even analysis Tip! To obtain funding. If you are planning on getting any sort of loan, you will definitely need a business plan in order for a bank to consider you. - expected return - monthly pro-forma cash flow statement * Human Resources - assign responsibilities - training required - skills required - union issues - compensation - skills availability - new hiring Other specialized sections such as product research and development, legal strategies, marketing research, or inter-company collaborations, are added to deal with unique features or characteristics of the business or its markets. This article has been supplied courtesy of Bill Darken. Bill often writes and works closely with Small Business Answers who can help with more information on small business plans. If the link is not active, you can paste this one into your browser - small-business-answers.com/ This site is dedicated to supplying the latest news and articles on small business to assist people progressing and to help with information and news. You can also look for small business loans information at small business finance. If this previous link is not working you can paste this link into your browser, loans-only.com/
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