What are the key elements of a fundable business plan?
Since the business plan is the backbone of your venture; and the necessary
first step for controlling your business and securing funding, there
are seven key elements that your business plan must cover:
1. An accurate representation of your company's advantage over competition
2. Why your concept will deliver a strong financial return
3. A profitable market exists for your product or service
4. Details on how your company will reach that market and gain market
share against established competition
5. Project unbiased sales and financial forecasting for a clear picture
of revenue potential
6. Defines and integrates the Operations and Marketing strategies
7. Serves as a practical road map for your company's success and future
growth.
8. An accurate representation of your company's advantage over competition
9. Why your concept will deliver a strong financial return
10. A profitable market exists for your product or service
11. Details on how your company will reach that market and gain market
share against established competition
12. Project unbiased sales and financial forecasting for a clear picture
of revenue potential
13. Defines and integrates the Operations and Marketing strategies
14. Serves as a practical road map for your company's success and future
growth.
The resulting business plan will function as an effective tool for presenting
your business idea to specific audiences, identify your unique position
and tell your story unlike any other business plan.
What
is a business plan?
Business Plans are much more than a tool to obtain financing. A business
plan is a written description of your business’s future. That’s
all there is to it—a document that describes what you plan to
do and how you plan to do it. Preparing a business plan helps clarify
your company’s direction, and can give birth to a corporate philosophy.
A business plan provides a blueprint, describing your company, its products,
business model, management team, competition, and business risks.
What are the contents of a business
plan?
Your Identity and Personnel
– What is your company, and who are the key players?
Your physical plant
– This is a description of your business location, your rent/mortgage
expenses, plus your maintenance and insurance costs.
Your Business? – WWhat exactly do you do? You need to
examine each of your products and/or services in terms of percentage
of you business and opportunities for growth. You should formulate
company milestones, including upcoming products and services in development.
Describe your current product or service and what makes it unique
and competitive
Your Marketing Strategy
– This section examines market conditions – the nature
of your customers, as well as your competitors, sales potential, and
what promotional steps you plan to take to develop your business.
Your Bottom Line –
This is a financial analysis – a listing of information for
prior years, and projections for your future. By identifying the strengths
and weaknesses of your company, certain patterns begin to emerge.
Perhaps this is where you can identify new opportunities for growth
– or areas where you can affect savings – changes that
will make your company more efficient. You can predict upcoming problems
or prevent them. In other words, the perspective gained through your
Business Plan can make a significant contribution to your company’s
success, and help you get the funding you require. In fact, most lending
institutions and private investors will not even talk to you without
a Business Plan.
Raising Capital –Look
at the loan officer or venture capital investor as someone who would
write you the check you need if only he or she could see beyond your
balance sheet. The investor’s mind is open and needs to be filled
with a generous amount of knowledge about what really makes your company
tick, and how they are going to get paid back (exit/payback strategy).
Why do I need a business plan?
You need a strong business plan that can be broken down in three different
categories; past, present and future.
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What
are business plans used for?
Business plans can help perform a number of tasks for those who write
and read them. They’re used by investment-seeking entrepreneurs
to convey their vision to potential investors. They may also be used
by firms that are trying to attract key employees, prospect for new
business, deal with suppliers or simply to understand how to manage
their companies better.
How can a Business Plan help?
Your business plan is a sales tool for your financial backers and
to yourself. First, to investors, the business plan is most often
thought of as a means of generating start-up funding from investors.
Each segment in the plan is researched and written in an approach
that sells investors on your goals and specific business strategies.
Secondly, in the process of researching and writing a business plan,
you will make the most important sale of all, and that is selling
the business idea to yourself. By taking an objective look at the
data you have investigated, you may determine that you cannot possibly
make this business work. Alternatively, you may not only sell yourself
on the idea, but also recognize that with some modifications, the
business may have greater potential than originally expected.
How long should a business plan be?
Most business plans are between 25-50 pages. This is sufficient to
address all the key issues that investors are looking for. The longer
the plan, the more cumbersome and distracting it is to read and many
potential investors may not feel compelled to read through a very
large document. The larger the document, the easier it becomes for
the reader to be alienated and be forced to skim through the document.
The key point is not the length of the document, but the precision
of the arguments in the plan. Your business plan should make an argument
to the reader about your business prospect to succeed and why you
deserve to be funded. You must demonstrate to the reader that you
have put in considerable thought into the business undertaking by
showing all the wonderful things that the business will do for your
customers. Your arguments should show that you have investigated your
market thoroughly and understand your competitors and more importantly,
what the differences if any mean to your targeted customers. It is
important that your presentation and writing style be as professional
as possible. If you decide to use graphs and charts make sure that
the graphics help to tell the story of your business and are easily
understood.
What important factors should I keep
in mind when preparing my business plan?
You only have one chance to make a first impression to those readers
of your business plan and grab their attention. Your plan needs to
have immediate visual attraction and an organized, well-developed
scheme in which you portray your business idea. Above all, your readers
will be focused on its’ content and any errors, inaccuracies
or inconsistencies, however minor or irrelevant, will instill distrust
and project a negative preconception which may lead to dropping your
business plan entirely.
Why should I use Business Plan Docs business plan instead of another
company or software package?
We have over 25 years experience in writing professional business
plans. What we are offering versus our competition are not generic,
boiler-plate templates that are used for every business by using a
merge function, but individual plans created for the specific business
at hand and are fully developed and investor ready.
Business plan software can very often be challenging due to the fact
that you still have to research the information as well as write the
business plan from scratch. Most business plans written from Business
Planning Software are not accepted by funding entities due to the
fact that they lack originality and are not well-developed.
Are your Business Plans written so
that I just put my details in and then it is complete?
We would like to say yes, but the reality is that no two businesses
are identical, and for us to create a plan that would suit every business
in any industry would be impossible.
Our business plans are the most complete and competitively priced
kick-start you could have. To most people, writing a business plan
is an undesirable task. We give you a quick start and ample information
to make your business plan significantly easier to complete.
What if I
cannot find my specific business?
New business plans are being composed and added regularly. You can
send us your request at support@businessplandocs.com
and we can search our database for a plan that fits your criteria.
You will then be contact by our customer support team on the status
of your request within 48-hours via email.
Will Business Plan Docs write a customized
plan for me?
Yes, Business Plan Docs will write you a customized plan for your
business for a fee. Please contact support@businessplandocs.com
for an estimate.
What is included in each business
plan?
All business plans include an Executive Summary, Company Analysis,
Market Analysis, Income Statement, Balance Sheet, Cash Flow and Break-Even
Analysis.
Are there any common mistakes to avoid
ensuring that my business does not fail?
There may be many factors to why businesses fail, but here are some
reasons for business failure:
Unrealistic planning and cost overruns - by projecting your sales
too high and your expenses too low or you estimated lower operating
expenses and therefore, you run out of money. Be honest, objective and
think thoroughly what you’re projecting, because they will become
the standard in which your business will ultimately succeed or fail.
Non-detailed
marketing plan – plan your marketing dollars wisely. There are
many ways to try and compete and promote your business, but be sure
you are targeting the right customers. Research and identify your key
strategies. Some advertising costs are expensive and do not produce
a valuable return on your investment, be sure you take the time to know
your audience and the persuasion involved in gaining and maintaining
them as a customer.
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