Chapter 10: Prepare Your Business Plan
Your business plan is a formal statement describing who you are about your business and your business goals. All of the things we discussed in the previous chapters come together in your business plan. In your plan will be background information explaining about you your experience and how and why the business idea came to be.
Your business plan describes in detail how you will function your future plans and will give a reader a full picture. And assist you and/or financial backers a tool to help in decisions to determine if the business is a viable option.
Writing a business plan is a critical component of running a business and is often overlooked, and many business owners only write a business plan when seeking finance and then often by the request of the financier.
Some successful business operators say they don't have a business plan, in reality they do. Everyday they plan; they set goals, review and adjust financial reports, they have a strategy, this is a plan. Never overlook the importance of planning no matter what you are told.
What is a Business plan
A business plan is not just a document for banks to read like some fairytale story. A well-written business plan gives the reader a full picture of your business idea and is a roadmap for you to achieve business success.
"A business plan is not just a document for banks to read like some fairytale story"
Build your Plan
Variables are everywhere in the business world; we can't capture them all but you need to thoroughly consider and research the variables your business might encounter.
Our article on the following information is covered in more detail at http://arcos-creator.com/business-planning-for-success/
SWOT Analysis
A SWOT is a breakdown of and looks at your;
• Strengths
• Weaknesses
• Opportunities
• Threats
The best way is by using SWOT analysis as covered in our article http://arcos-creator.com/choose-a-business/
Mission Statement
Start with a Mission Statement explaining briefly in 3-4 sentences what your business is about, what is the vision and mission of the business.
Executive Summary
This is where you describe your key objectives, ownership, and management structure.
The executive summary gives an overview of what product or service you are offering, your target market, competitive advantages, marketing strategy, and a summary of your financial projections.
"Note: Its best to write your executive summary last, as each paragraph is a summary of the more detailed, related sections in the plan"
Business Profile
A business profile provides a description of your business and it's industry. The current market of that industry any foreseeable changes and future opportunities are described in the profile.
Marketing Strategy
What we covered in Chapter 8 now comes into play. This is where you demonstrate that you understand your market and shows your readers that you can succeed in your target market.
From your SWOT, you would have identified opportunities you will need to expand on your findings to show your industry and market knowledge. Demonstrate how you can take advantage of these opportunities and fill these gaps.
You will describe how you will promote your product or service, how your pricing is structured and how you will sell and distribute your product or service.
Include an advertising/marketing plan demonstrating how you will get your product or service known.
Financial Plan
This is the most important section of any business plan All of your projected financial statements, income statements, monthly cash flow, and annual cash flow for up to three years need to be included.
The first year should be broken down into monthly projections for at least the first six months. Quarterly, projections for year two, and yearly projections through to years three, or more if you choose.
"Include graphs if you can, a picture tells a thousand words"
Include graphs if you can, a picture tells a thousand words.