What is a business plan in the perspective of a startup company? How can writing the business plan help your company achieve its goals? Why is a business plan vital to the direction, strategy, and health of your business? First of all, there is one thing I am sure you would all agree. All financial and lending banks and institutions requires a business plan before they open their ears and listen to what you have to say about your business.
The business plan is the roadmap of your business goals that describes the nature of the business. It actually serves as your guide in the first few stages of planning. This one important document is normally required when you are trying to get a loan for additional capital funding.
Simply stated, it signifies management in all aspects of the company and provides a good insight about how you are going to financially fare with the kind of management skills and business strategies you are going to implement. Breakeven? Is the venture feasible? Can it be profitable?
The business plan clarifies the vision, mission, goals and objectives of the company, but should conform to the format given by the lending or banking institution. A business plan should always follow the form and content the bank requires for evaluation.
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The plan practically outlines the route a company intends to take so it could earn profitably. Here is a good outline you can follow in creating a comprehensive business plan
This is a snapshot of your entire business plan. The Executive Summary briefly tells the highlights and strengths of your business.
This summary section is expected to grab the interest of the investors. If you cannot make it through the Executive Summary, then they won’t read the rest of the content of your business plan.
The Executive Summary can be seen on the first page of the business plan. You may include
- Mission statement
- Company information (short statement)
- Growth highlights
- Products/ services
- Financial information
- Summary of future plan
The Executive Summary should be as concise and clear as possible. This should be kept to one page only. Let each word count.
Being a startup means not having enough company information, which includes the financial data. You may focus and write about your experience and background that would help them realize you are a good fit for the business you are planning to set up or develop.
You should be able to demonstrate you had done your market research and analysis, which includes some information about how you are going to proceed in penetrating your target market segment. A good value proposition would be nice.
Although the Executive Summary is found on the first page, this will be the last thing you write. Write this after you had completed everything.
The Company Description carefully explains what you do and what makes you different from the other players in the market. In this section, you may discuss about differentiated service or remarkable product, which includes a brief description of the market you are going to serve.
The Company Description demonstrates an extended elevator pitch. The unique value proposition can best explain what differentiates your company, brand, service, or product from the rest of the industry players. You may include
- A description of the nature of your business
- Target market
- Needs or demands of the market
- Explain how your service or product can meet the demands/ needs of the market
- Cite the specific, unique value proposition
- Give a small list of the organizations or consumers you are currently serving
- Draw the competitive advantages
- Explain the factors you can use to leverage and position yourself in the market
A simple concept may require fewer words and may not need a lengthy effort in explaining and convincing the need for a sizable amount of loan. The riskier your business, the more facts and figures you have to give. You may need to produce a detailed plan that describes its complexity.
Make sure your research covered any significant market change, shifting customer preferences, geotargeting and trends, and altered regulatory climates. Give what they need and do it right the first time, because you may not get second chances!
Consistency is a must and every content should conform to your business style. Remember, business plans do not need cosmetics and impressions. They need facts and figures. No slang words. No informal jargon. Give comprehensive information without misrepresentation.
You would be thankful if banks give you their analysis and you will know, before you invest the last penny in your pocket, whether your business is going to make some money or make you poor in due time.
Go to Start Up Business Plan Part 2 here http://2goselfies.com/startup-business-plan-p2/