Business Plan – Executive Summary
05/19/2020
Registering an LLC or Corp. – Links to All State Offices
05/19/2020Business Plan – Executive Summary
05/19/2020Registering an LLC or Corp. – Links to All State Offices
05/19/2020
Business plans are blueprints for the design and implementation of your business. Like an architect at a drafting table, the business plan writer must have specific goals in mind and a clear plan for reaching them. It is also important to state all of the reasons why these goals can be achieved and back them up with facts and data. Realistic goal setting, sound planning, and thorough research are all key to preparing a well made business plan.
Writing a business plan is similar to creating well thought-out road map for a company to follow. This is something that entrepreneurs do everyday, but to actually elaborate on those thoughts, along with the requisite research and analysis to back them up, into a written document is a complex task that can seem daunting.
A business plan can be the key element in obtaining financing or investment funds, and it is often a requirement for a start-up. Many times, business plans are specifically written to address what banks and lenders will be looking for, such as cash flow available to service the debt request and ability to repay. When considering lending to a start-up, lenders will often require a guarantee from the Small Business Administration (SBA) as a condition for funding. It is important to have the right business plan to present to the SBA for your loan request.
A business plan is usually the first thing a venture capital company asks for when interacting with a company. It is the most important document that is created during a company’s start-up phase. It is imperative that the business plan is written and prepared correctly as companies may not have a second chance; in this regard, first impressions are everlasting in the business world.
Business Plans for Management
Whether starting a business, seeking to troubleshoot current business operations, or looking to expand an existing business, a business plan is a great document to compile all thoughts and analysis on paper. Every entrepreneurial undertaking needs to keep a blueprint for success on file, a carefully designed business plan meets this requirement.
Business Plans for Private Investors and Crowd Funding
We are often asked about the need to have a business plan to submit a project to a private investor or crowdfunding site like KickStarter. Our answer to this question is invariably yes. The content and thought process that goes into the creation of a business plan is essentially the same that is used to make presentations for private investors. The idea is to have something on hand to show investors that the business can, in fact, be executed upon.
It can also be helpful to view a business plan as a complete outline, containing all of the elements of your business and its place in your industry. Although there is no particular format that you must stick to, here are some fundamental elements which you will want to include:
Executive Summary
Think of an executive summary as the introduction to your plan. It should highlight the key points which you wish to make throughout the document using simple declarative statements in order to give your audience an overview of what your business intends to accomplish. As in a good essay, emphasize the points you are trying to make and follow through on them in the body of the plan.
Company Description
This section should include a complete history of your business along with its current legal structure. Describe your facilities, production processes, and strategic alliances. Explain the industry your company fits into and any achievements it has made within it.
Management & Organization
This should consist of brief profiles of management and their qualifications. It must also describe the organizational structure and ownership of the company. Instilling confidence is your aim here.
Products & Services
Define the products or services which you will use to generate revenue and be sure to highlight their unique characteristics; think features and benefits. You will also want to mention any R&D initiatives, patents, or innovations.
Market Analysis
Remember the three Cs of marketing: Company, Competition, and Customer. What gives your company an edge and what are its weaknesses? What companies are you competing with and what are you doing that they aren’t? When it comes to the final C, your customers, remember the 5 Ws: Who are they? What research suggests they want your product or service? When will they use your product or service; in what direction is it trending? Where do you plan to find these customers? Why will they want to choose your product or service above the competition’s? If you want to impress your audience, then do your homework and answer these questions effectively.
Marketing & Sales Strategy
State your mission and the tactics which you plan to employ in order to achieve it. Discuss your marketing strategy in this section, not in the analysis, but you will need to rely on the conclusions which you came to in there. Now would also be a good time to announce a web presence or Internet marketing plan.
Financials
This consists of your current balance sheet and projected income, cash flow, and profitability statements. Be realistic; an honest assessment will show potential investors that you have a firm grasp of the conditions in your industry. If you are seeking financing or investment you will want to include what funds you need and why you need them. Provide various methods of financing in order to give your benefactors options to work with.
There is no guarantee that a business plan will spell success, but it is an essential tool for measuring it and an important step towards financing your venture. For these reasons, a well prepared and current business plan is critical to the future of any company, large or small.
