Archive for April, 2011

Business Plan Basics

April 4, 2011

Going through the process of creating a business plan will help you identify if your business idea is feasible and viable!

A well written Business Plan can serve as a Marketing Tool once you remove the Financial Information.

Executive Summary

  • Write this section last – 2 pages or less
  • This is your Expanded Elevator Speech – 5 min
  • Explain the fundamentals of the business
  • Make it enthusiastic, professional & complete
  • For a Loan? State clearly how much you want, how long you will use it, and how the money will make your business more profitable, thereby ensuring repayment

General Business Descriptions

  • Identify What your Business is. What Does it Do?
  • Mission Statement
  • Goals & Objectives
  • Business Philosophy
  • Market
  • Industry
  • Strengths & Core Competencies
  • Legal form of Ownership

Products & Services

  • What Products will you sell
  • What Services will you provide
  • What are your Competitive Advantage Factors
  • What is your Pricing Structure

Marketing Plan

  • Product and/or Service
  • Clients/Customers
  • Target Market
  • Competition
  • Niche
  • Strategy
  • Revenue Forecast

Operations Plan

  • Location
  • Legal Environment
  • Personnel
  • Credit Policies
  • Suppliers

Management & Organizations

  • Management
  • Professional & Advisory Support

Personal Financial Statement

  • Your Professional Resume
  • Professional Objective
  • Functional Resume
  • Work History

Financial Plan

  • Projections: Monthly, 1 year, 3 years, 5 years
  • Breakeven
  • Profit
  • Cash Flow Statements
  • Profit & Loss Statements
  • Assumptions used in formulating plans
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