A good business plan will guide you through every step of starting and running your business. Your business plan will serve as a blueprint for structuring the operation, grow, and run your business. It’s a way of thinking about the essential elements that make up your company.
Business plans can assist you to obtain funding or find potential business partners. Investors want assurance that they’ll get a return on their investment. A business’s plan of action is the device you’ll use to convince others that working with you as well as investing into your business is a good option.
Select a business plan template that is suitable for your needs
There’s no one right or wrong method to create an effective business plan. The most important thing is that your plan is in line with the needs of your business.
Most business plans fall in one of two general categories that are lean or traditional startup.
Business plans that are traditional tend to be more popular and follow a standard format and require you to provide more detail within every section. They typically need more effort upfront and may be several pages long.
Lean business plans for startups are not as than usual, yet they use an established design. They concentrate on summarizing the most essential details of the most important elements of your business plan. They could be as short as an hour to create and usually only one page.
Traditional business plan
This type of plan is very detailed, takes more time to write, and is comprehensive. Lenders and investors commonly request this plan.
Lean startup plan
This type of plan is high-level focus, fast to write, and contains key elements only. Some lenders and investors may ask for more information.
Traditional format for business plans
You may prefer a more traditional business plan template If you’re extremely detail-oriented and require a thorough plan, or intend to solicit the financing you need through traditional channels.
When you create the business plans, you don’t need to adhere to the exact outline of your business plan. Instead, you can choose sections that are most appropriate for your company’s requirements. Traditional business plans make use of a combination of the nine sections.
Inform your reader about what your company’s mission is and the reasons why it is successful. Incorporate your company’s mission, the name of your item or service as well as the basic details about your business’s staff, leadership team and their where it is located. Include the financial details and top-level growth plans in case you are planning to seek financing.
Description of the company
Make use of your company’s name to provide complete information about your business. In depth describe the challenges your business tackles. Make sure you are specific, and identify the customers organizations, businesses, or individuals that your business plans to serve.
Discuss the competitive advantages that can help your business succeed. Do you have experts in your team? Are you able to find the ideal site for your store? Your company’s description is where you can showcase your strengths.
Analyzing the Market
You’ll require a thorough understanding of your industry’s outlook and your target market. Research on competitive markets will reveal the activities of other companies in terms of their strength. When conducting market research, you should look for patterns and themes. What are the strategies of successful competitors? What is the reason it works? Do you have a better way to do it? This is the perfect time to address these questions.
Management and organization
Let your reader know the way your business will be organized and who will be the person in charge.
Define the legal organization of your company. Declare whether or not you are planning to incorporate your business in a C or S corporation, or form an LLC or a general partnership or, if you’re a sole proprietor, or a limited personal liability corporation (LLC).
Utilize an organization chart to show the roles of each person within your business. Explain how each individual’s unique knowledge will aid in making your business. Think about including CVs and resumes of the most important employees of your team.
Product line or service
Explain what you offer or the services you provide. Discuss how it will benefit your customers and how the lifecycle of the product is like. Discuss your plans for intellectual property such as patent or copyright filings. If you’re conducting studies and research for your product or service Explain it in detail.
Sales and marketing
There is no one method to implement an effective marketing strategy. The strategy you choose should be flexible and adapt to your specific needs.
The purpose of the next section will be to outline the methods you’ll use to attract and keep customers. Also, you’ll describe the process by which a sale can occur. You’ll be referring to this section in the future when making financial projections. Therefore, be sure to describe in detail the entire marketing and sales strategies.
Request for funding
If you’re requesting money, this is the place you’ll describe your requirements for funding. It is important to be clear about the amount of funds you’ll require over the course of five years, and what you intend to use it for.
Please indicate whether you’d like to use equity or debt and the terms you’d like used, and the length of time that your request will be valid for. Include a clear explanation of how you’ll utilize your money. Indicate if you require funds to purchase equipment or supplies to pay employees, or pay specific bills until the revenue rises. Be sure to include a outline of your strategic financial plans, including the repayment of debt or the sale of your company.
Projections of financials
Include in your funding request financial projections. The goal is to convince your reader that your company is financially solid and will be an economic success.
If your business is established, make sure to include accounts of income, balance sheets and cash flow reports for the past 3 to 5 years. If you have collateral you might use against the loan, be sure you record it now.
Give a financial forecast for the coming five years. Include income statements that are forecasted and balance sheets statements of cash flow, and capital budgets for expenditures. In the beginning you should be more specific and use quarterly or even monthly projections. Be sure to explain clearly your projections and then match them with your requests for funding.
This is a fantastic location to utilize charts and graphs to tell the financial tale of your company.
Attach your appendix to the supporting documents and other documents that specifically requested. Common things included are credit history as well as resumes, photos of products and letters of recommendation, licenses permits, patents, Legal documents as well as any other contracts.
Traditional business plan examples
Before you begin writing your plan for business, take a look at the following business plans created in the fictional form of business leaders. Rebecca runs a consulting business as well as Andrew has a toy company.
Lean Startup format for startups
It is possible to choose a slim startup template if you need to describe or establish your business fast or if your business is straightforward, or you intend to frequently alter and improve the business strategy.
Lean startup templates are charts that use just few elements to present your business’s value proposition, its infrastructure customers, financials, and customers. They are useful in illustrating key aspects of your business.
There are many ways to build a slim template for your startup. You can use the internet for free templates to create an effective business plan. We will discuss the nine elements of a business plan model in this article:
Take note of the other companies or companies you’ll collaborate with to manage your company. Consider suppliers, manufacturers subcontractors, as well as other strategic partners.
Write down the ways in which your company can gain competitive advantages. Include things such as selling directly to consumers or making use of technology to tap into the share economy.
Consider any resource you’ll use to add value to your customers. Your top assets might include capital, staff, as well as intellectual property. Make sure to take advantage of the resources of your business that are open for female employees, veterans, Native Americans as well as HUBZone-based businesses..
Create a concise and convincing claim about the distinctive worth your business can bring to the marketplace.
Explain how customers interact with your company. Are they interacting with you via automated or personal? Online or in person? Take a look at the experience the customer will have from beginning to end.
Be specific when naming your market. Your company won’t appeal to all people, so it’s vital to be clear of who your company will be serving.
The most effective methods you’ll communicate with your customers. The majority of businesses employ a variety of channels. You can enhance them as time passes.
Structure of cost
Does your business concentrate on reducing costs or maximising value? Set out your strategy and identify the most significant expenses that you’ll have to face in pursuit of it.
Define how your business will be able to make money. A few examples include direct sales, membership costs, and selling advertising space. If your business has several income streams, make sure you make sure to list each of them.
A business plan example that is lean
Before writing the business strategy, you should read this business plan example written by an unreal business owner named Andrew who runs the toy company.
How to write your Perfect Business Plan: A Complete Guide
Many business plans are merely fantasies. Many aspiring entrepreneurs view the business plan as an instrument, stuffed with projections, strategies and hyperbole – that convince investors or lenders that the business is logical.
It’s a big mistake.
The first and most important thing is that your business plan needs to make your that your concept is logical, since your time, your money and your efforts are at stake.
So a well-crafted business plan should serve as an outline to run an profitable business. It should outline strategic plans, formulate sales and marketing strategies to establish the foundation to ensure smooth operation and perhaps convince investors or lenders to join.
For many business owners, creating plans for their business is the initial stage in deciding whether or not to launch the business. The ability to determine if a business idea fails on paper will aid a potential founder in avoiding investing time and money in an idea that has no chance of the success.
Therefore, at the very least, your strategy shouldinclude:
- Make sure you are as objective and rational as you can. While it may seem as a good idea for a company could be a failure after some reflection and analysis may not be viable due to intense competition, inadequate funds or an undeveloped market. (Sometimes even the most innovative concepts are way far ahead of their time.)
- serve as a reference for the company’s operations during the initial few months and, sometimes, years, providing a framework for the company’s leaders to follow.
- The company’s mission and vision, define the management’s responsibilities, outline the requirements for personnel, give an overview of marketing strategies and assess the competition that is currently and in the market.
- The foundation for the finance plan for lenders and investors to review the business.
A well-crafted business plan delve into all the above categories, but should be able to achieve other goals. In the end, an effective business plan must be persuasive. It makes the argument. It gives specific, concrete evidence that proves your business plan is actually solid and reasonable, and has every possibility of success.
Who should you have your plan for business be convincing?
In the first place, your business plan must be convincing that you that your plan to start a business isn’t only a fantasy, but could become a real possibility. Entrepreneurs are naturally optimistic, confident, and positive people. If you take a hard look at your capital requirements, the offerings or service, competitors, marketing plans, and your potential to generate a profit you’ll get a better understanding of your odds of success.
If you’re still not sure, great: You can take a step back and work on your ideas and strategies.
Who could your business strategy be convincing?
1. The possibilities of funding. If you are in need of to raise money for your business from a financial institution or from family members the business plan you have drawn up can assist you in making a strong argument. Financial statements will show what you’ve done. Financial projections show the direction you’re planning to take.
Your business plan will outline how you’ll reach your goal. The process of lending naturally comes with risk A well-designed business plan can assist lenders better understand and quantify the risk, which can increase your chance of getting approval.
2. Potential investors and partners. When family members and friends are concerned the sharing of your business plan may not be required (although it might aid).
Other investors–including angel investors or venture capitalists–generally require a business plan in order to evaluate your business.
3. Experienced employees. If you’re looking to recruit talented employees, you’ll must have something to demonstrate potential employees that you’re in the beginning stages of your business. At first, your business is more an idea than a real thing, therefore your business plan should assist prospective employees to understand your objectives and, most importantly is their role in helping you accomplish these goals.
4. Joint ventures that could be possible. Joint ventures are similar to partnerships between two firms. Joint ventures are an agreement in writing to share the burden and part of the profit and profits. Since you are a brand new business it is likely that you’ll be unknown in the market. Establishing the joint partnership with a seasoned partner can be the key to getting your company off the starting.
However, above all the business plan you create should be convincing your that it’s logical to continue to grow.
When you sketch your strategy you might encounter problems or obstacles you hadn’t thought of.
Perhaps the market isn’t so big as you think. After analyzing the competitors, you realize that your goal of being the lowest-cost service provider isn’t viable because the margins of profit will be insufficient to cover the costs.
You may realize that the basic idea behind your company is sound, however, the way you implement this idea must be altered. Perhaps establishing a shopfront for your business isn’t as effective as delivering your products directly to your customers. Not only will your operational costs be lower, but also you are able to charge a higher price because you offer additional convenience.
Consider it in this manner. Successful businesses do not remain static. They learn from their mistakes and adjust and respond to the changes that occur to the business environment, market, their customers as well as their products and services, etc. Successful businesses recognize opportunities and threats and respond in a timely manner.
Making a business plan helps you identify opportunities and obstacles without the risk. Make use of your plan to test your luck in the waters of business. It’s a great method to revise and review your ideas and ideas before you spend a dime.
A lot of people view writing an business plan as something that is a “necessary evil” necessary to secure funding or investors. Instead, view your plan as a free way to evaluate the possibility of your company and avoid costly mistakes.
Let’s take a take a look at the first part that you’ll need to include in the business plan the Executive Summary.
The Executive Summary provides a succinct overview of the company’s goals and mission. Although it isn’t easy to fit into only a couple of pages, an effective summary should include:
- Brief description of the products and services.
- A brief overview of the goals
- A thorough explanation of what the market is
- A clear and concise justification for viability (including an examination of your competitors as well as your advantage in competition)
- A quick snapshot of the potential growth
- A brief overview of the funding requirements
I know it’s an awful lot, which is why it’s crucial to do it correctly. The Executive Summary is typically the key element of the business’s plan.
A good business is one that solves customer issues. If your Summary is unable to clearly explain, in just two or three pages, the way your company will address an issue and turn an income, it’s likely that the opportunity isn’t there, or your strategy to make the most of an opportunity that is real not fully developed.
Consider it an overview of your business strategy. Do not try at trying to “hype” your company. Instead, focus on helping the person get a good feel of what you intend to accomplish and how you will accomplish it, and the ways you’ll be successful.
As a business plan is supposed to first and foremost help you to start and expand your business, your Executive Summary must be the first thing to help you accomplish the following.
1. Make sure you have a clear and concise idea.
Consider it as an elevator pitch (with more details and, of course, more detail). The Summary outlines the key points of your plan. It includes only the most crucial aspects, but isn’t concerned with less important questions and issues.
When you write your Summary, you’ll naturally concentrate on the aspects that are the most crucial to success. If your idea is vague, wide, or too complex take a step back and start over. The majority of great companies could be explained in a few phrases, not many pages.
2. Set your priorities.
Your business plan guides readers through your plan. What are the top priorities in importance? Product development? Research? Finding the perfect place? Forming strategic partnerships?
The Summary you write can be used as a template for creating the rest details of your strategy.
3. The rest of the procedure easy.
After your Summary is finished Once you have it completed, you can make it an overview for your remainder of your strategy. You can simply add more details.
You can then work towards achieving your second goal by focusing on your audience. While you may be writing your business plan solely for personal reasons At some point, you could decide to apply for funding or bring in additional investors. So be sure the Summary is suitable for their needs in addition. Make sure you establish the foundation for the rest of your plan. Let your enthusiasm about your idea and your company show through.
In a nutshell, you should make readers beg them to open the book and read on. Be sure that the taste is as good as your steak by providing clear, precise descriptions.
How? Here is an example of how an Executive Summary for a bike rental shop might look.
Blue Mountain Cycle Rentals will provide mountain and road bikes for rent in a convenient position that is right next to an entry point into the George Washington National Forest. Our goal is to create Blue Mountain Cycle Rentals as the most cost-effective and convenient rental option to the thousands of tourists who visit the region each year.
When we are up and running, we will extend our reach and profit from the high-margin of new equipment sales and leverage our existing labour workforce to sell and maintain these products. In three years’ time, we’re planning to establish the region’s top destination for cyclists.
Company and Management
Blue Mountain Cycle Rentals will be situated in 321 Mountain Drive, a location that has a high degree of visibility and an easy entry and exit point from a main national park access road. The proprietor of the business, Marty Cycle, has more than 20 years of experience in the cycling industry, having worked as an account manager for Acme Cycles as well as the general manager of Epic Cycling.
With his vast connections in the industry, the his initial inventory of equipment can be purchased at huge discount from OEM suppliers and also by buying excess inventory from retailers across the nation.
Due to the seasonal nature of the industry due to the nature of the business, part-time employees are hired to manage surges in demand. They will be enticed by competitive salaries and discounts on products and services.
460,000 visitors were in at the George Washington National Forest during the past twelve months. Although the industry of outdoor tourism in general is sluggish however, the park is expecting its visitors’ numbers to increase in the next couple of years.
- The economic outlook suggests that less VA or WV NC and MD cycling enthusiasts will be able to travel out of the region.
- The park has also added campsite and lodging facility which should draw a greater number of tourists
- The park has also opened new areas for trail exploration and development, which will provide an increased number of single-track alternatives and, consequently, more tourists
The market potential that comes with the presence of these visitors is enormous. According to research conducted by third parties around 30% of cyclists would prefer to hire rather instead of transporting their own bikes and especially those traveling to the region for other reasons than cycling.
The bike shops that are located within Harrisonburg, VA, are directly and well-established competitors. Our primary competitive advantage are our location and lower prices.
Our position is also a significant disadvantage as far as non-park rentals are in the area of non-park rentals. We’ll overcome this problem by creating the satellite location in Harrisonburg for those who want to rent bikes to use around town or on local trails.
We’ll also utilize online tools to engage customers, enabling them to pay and reserve online and also create individual profiles with regards to dimensions, preferences, and particular needs.
Blue Mountain Cycle Rentals expects to make a small profit by the end of year two in the event of the projected sales. Our projections are based upon the following assumptions:
- The initial growth will be modest as we gain awareness of the market
- Initial purchases of equipment will remain in use for the average of 3-4 years. after two years, we’ll begin to invest on “new” machines to upgrade worn out or damaged equipment
- Marketing costs should never exceed 14 percent of the sales
- The residual profits will be reinvested to increase the range of products and service line
We anticipate first-year revenues of $720,000 with a 10% growth rate over the coming two years. Direct cost of sales is expected to be 60 percent on average of sales, which includes 50 percent of the cost for the purchase of equipment, and 10 percent for the acquisition of ancillary products. Net income is expected to increase to $105,000 by the end of year three , as sales rise and the operations are more efficient.
And it goes it goes on …
Be aware that this is merely a fictional model of what your Summary could be written. Remember that this example was geared towards renting, and so the description of products wasn’t included. (They’ll be added in the future.) If your company is able to manufacture or sell products, or offer various services, be sure to include an Products and Services section in your Summary. (In this scenario, the goods and services are clear that a separate section is redundant.)
The bottom line is:Provide some sizzle in your Executive Summary, but be sure that you take a fair glance at the steak as well.
Overview and Goals
The process of presenting a summary of your business may be difficult, particularly if you’re in the process of planning. If you’re already running an existing company, describing the current operations will be fairly easy. However, it’s a bit more difficult to articulate the future plans for what you want to grow into.
Therefore, start by taking an unintentional step back.
You should think about the items and services you’ll offer, the method by which you deliver those items as well as what you must be able to provide these items, specifically who will be the ones to provide these products, and, most importantly who you will supply the products to.
Take our bicycle rental business instance. It caters to retail customers. It’s an online company however the heart of the company is built on face-to face transactions for bike rentals as well as assistance.
Therefore, you’ll require the physical space with bikes, racks, tools and other brick-and mortar related things. You’ll require employees with a particular range of skills to assist customers, and also an operating plan that will help you manage your day-to-day actions.
Do you think that sounds like you have a lot? It’s about:
- What do you expect to describe
- What are the essentials to run your business
- Who will serve your customers?
- Who are your clients.
In our scenario, defining the above is quite simple. You are aware of what you can be able to provide to meet the customer’s requirements. Of course, you will require some number of bikes to meet customers, but you do not require many various types of bikes. It is essential to have a place for retail that is equipped to meet the requirements of your company. You require semi-skilled workers skilled in sizing, customizing and fixing bikes.
And you are aware of your clients cyclists.
In different industries and business asking the same questions may be more challenging. If you are opening an eatery, the food you will be serving will determine in a few ways your requirements for labor and the location you select as well as the equipment you have to buy. In addition is that it can help you define your customers. Any change to one aspect can alter other elements. If you are unable to afford expensive kitchen appliances and appliances, you might need to alter your menu in line with. If you want to draw an elite patron, you might have to spend more money on the best location and establishing an inviting atmosphere.
Where do you begin? Start with the basics:
- Identify your industry. Retail, wholesale, service, manufacturing, etc. Define your kind of business.
- Find your client. It is impossible to market and sell to customers until you are aware of who they are.
- Discuss the issue you have solved. Successful businesses add value to their customers through solving problems. In our case the main issue is that of cyclists who aren’t able to travel on bikes. Another issue is those who are unable to or do not want to spend substantial amounts on their own bicycles. The rental shop solves this issue by providing an affordable and practical alternative.
- Find out how you can resolve the issue. Our rental shop is able to offer higher prices and more options such as remote deliveries as well as equipment returns after hours as well as online bookings.
If you’re still stuck, you can try these questions. Some might be relevant to you, while others might not.
- Who’s my average customer? Who do I want to target? (Unless you’re planning to open a store in the grocery sector it is likely to say “Everyone!”)
- What is the biggest problem I can address for my clients?
- How can I get around the paint spot?
- What are the areas where I will not be able to resolve the issue of a client and what should I be doing to fix this problem? (In the rental scenario there could be a inconvenience and we’ll address the issue by offering online reservations, deliveries to resorts and return of equipment by drive-up.)
- Where can I find my company?
- What are the most important products, services and equipment do I require to run my business?
- What are the skills my employees require, and how many of them do I require?
- How can I outdo my opponent?
- How can I distinguish myself from the competition in the view of my clients? (You could have a brilliant strategy to compete with your rivals however, you must also beat the perception battle between your customers. If they don’t believe that you’re different, they aren’t really different. Perception is the key.)
If you study the list you’ll get a lot more information than is required to complete your business plan. This isn’t an issue. Start rewriting the key elements. As an example the business Overview as well as Objectives section could begin like this:
History and Vision
Blue Mountain Cycle Rentals is an upcoming retail venture which will be situated on 321 Mountain Drive, directly adjacent to a very popular cycling spot. Our initial objective is to establish ourselves as the top service provider of bicycle rental. We’ll build upon our existing customer base and position on the market to provide new equipment sales and complete maintenance and service and fittings for custom equipment, and expert trail guidance.
- Reach the top market share of bicycle rentals in the region.
- Earn a net profit of $235,000 at the close of the second year .
- Reduce costs for replacement of rental inventory by ensuring the attrition rate at 7 percent for existing equipment (industry typical is around 12 percent)
The Keys to Success
- Offer high-quality equipment, and obtain the equipment at the lowest cost possible by establishing relations with equipment manufacturers and other cycling shops
- Utilize signage to draw in people who are visiting our national forests, while highlighting our costs and benefits.
- Add additional factors of convenience for customers to offset the perception of a lack of convenience for those who plan to take a ride on trails and roads some distance from our shop.
- Create customer loyalty and incentive programs that leverage relationships with customers and promote positive word-of-mouth
And it goes to …
You can certainly add more details in each section, but this is merely a brief guide. If you are planning to create products or services it is essential to explain the development process and the final product.
The most important thing is to explain what you’ll do to your customers. If you aren’t able to do that do that, you will not ever haveany customers.
and Services. and Services
The Products and Services section of your business plan, you’ll be able to clearly define the products and services that your company will offer.
Be aware that extremely lengthy or complex descriptions aren’t required and certainly not suggested. Make use of simple words and avoid terms that are commonly used in the industry.
However explaining how the product or service of your company will be different from those of competitors is crucial. Also, you must explain the reasons why your products and services are required even if there is the market isn’t currently there. (For instance, prior to the time the advent of Federal Express, overnight delivery was a niche service offered by small businesses. FedEx needed to establish the need for a brand newservice that was large in scale and demonstrate why customers required — and should actually utilize–that the service.)
Patents, copyrights and trademarks that you own or have filed for should be included in this section.
In accordance with what you do in your business the Products and Services section could be quite long or shorter. If your company is focused on products and you are focusing on products, you should be more thorough in describing the products.
If you intend to market an item that is a commodity and the secret to success is such things as competitive pricing it is likely that you don’t have to provide a great deal of product information. If you intend to market a product that is accessible in a variety locations, the most important factor to your success may not be the product however, but the ability to market it in an efficient way that is more cost-effective than your competitors.
However, if you’re creating an entirely new item (or service) ensure that you fully explain the essence and purpose of the item, it’s purpose and benefits, etc.–otherwise your readers will not be able to judge your company’s worth.
Questions to consider:
- Are there products or services that are in the process of development or are they already available (and available for sale)?
- What’s the timeframe to bring new products and services to the
- What is it that makes your product or services distinct? Do you have competitive advantages to offerings of other competitors? Are there disadvantages in your competitive position that you’ll need to overcome? (And in the event that yes then how?)
- Do you have a price issue? Do your operating costs remain sufficient to provide an adequate profit margin?
- How do you get your products? Are you the producer? Do you build products with components supplied by third parties? Do you buy products from wholesalers or suppliers? If your company is growing does it have a consistent supply of goods accessible?
In the cycle rental business instance we’ve used the products and services can be an easy section to fill out or be quite complex. It’s all dependent on the nature of the goods the business plans to rent out to customers.
When Blue Mountain Cycling Rentals plans to position its services as providers of top-quality bikes, detailing the bikes, and the source for them is crucial because “high-end rental bikes” is meant to be a point of differentiation. If the company intends to be a low-cost supplier and sells specific models of equipment is not needed.
Remember that if your supplier is out of capacity or ceases to exist altogether, you might not have enough quantity to meet your needs. Make plans to establish several supplier or vendor relations, and define these relationships thoroughly.
Rememberthat the main objective in your plan for business is convincing that you that the venture is viable and to provide an outline for you to follow.
Our Products and Services section for our business of renting bikes could begin as follows:
Description of Product
Blue Mountain Cycle Rentals will provide a broad selection of bicycles and cycling gear suitable for people of all ages, and ability. As the majority of customers want quality equipment of a moderate standard and top-quality services at affordable prices We will concentrate on offering brands such as Trek bikes Shimano shoes, as well as Giro helmets. These brands have a wide image as being mid- to top-quality, in contrast to the items typically found in rental markets.
This is a breakdown of the expected rental cost points for each day and week:
- Bicycle $30/$120
- Helmet $6/$30
- Customers are able to extend their rental period online, without having to visit the store.
- The grace period is 2 hours will be granted to any rental and customers who return equipment in the time frame of two hours are not charged an additional charge.
Blue Mountain Cycle Rentals will possess distinct advantages over its main competition and the bike stores located inside Harrisonburg, VA:
- Newer equipment inventory has better perceived quality
- Price points that are 15 percent lower than the average
- Online renewals offer more ease of use
- A generous grace period for returning which will help to build our reputation as a friendly rental experience for our customers.
Expanding our offerings will allow us to shift the product line to new equipment sales. We’ll also be looking at the possibility of fitting and maintenance services, using our maintenance personnel to provide services that are value-added at an affordable cost.
And it goes to …
When you are writing the Products and Services section, consider your reader as someone who knows nothing about your company. Keep it simple and concise.
Consider this in the following manner Consider this: Your Products and Services section answers the “what” issue for your company. Be sure to fully comprehend the “what” aspect You may be the one running the company, but your product and service offerings are the vitality.
Market research is essential for business success. A well-designed business plan analyses and evaluates the demographics of customers as well as purchasing habits, purchasing cycles, and the ability to try new products and services.
The first step is knowing your target market and the opportunities offered by that market. This means that you’ll have to conduct some study. Before starting a business, you should ensure there’s a market for what you want to provide.
The process involves asking and, more importantly, answering various questions. The more thorough you respond to the questions below and the more you be able to comprehend the market.
Begin by looking at the market at a high-level, and then answer some fundamental questions about your market as well as your particular industry:
- The size and scope of market? Are you seeing it grow, stable or is it in decline?
- Are the overall industries growing or stable, or is it declining?
- What market segment will I concentrate on? What demographics and patterns constitute the market I want to be able to
- Does the demand for my particular items and services increasing or decreasing?
- How can I distinguish myself from my competitors in a way that the customers appreciate? If yes, then how do me differentiate myself at a reasonable cost?
- What is the expectation of my customers from me when I ask them to purchase goods and services? Do they count as an item of trade or customized and individual?
It’s good to know that you’ve performed some of the work. You’ve already laid the products and services you offer. The market Opportunities section will provide a sense-check of your analysis. This is especially important when choosing the best products and services can be an essential element in the business’s success.
However, your analysis must be more thorough: Excellent products are wonderful however there has to be an audience for these products. (Ferraris are amazing however, you’re not likely to sell them everywhere I reside.)
Let’s get deeper into the subject and determine the size of your market. The goal is to be aware of the buying capability of potential customers who are in your industry. A bit of Googling will provide a huge quantity of information.
To determine the market you want to serve, consider:
- Your prospective customers. In general, potential customers are people who are in the segment that you intend to focus on. If you are selling jet skis. Anyone who is younger than 16 and older than 60, or therefore is not likely to become a client. Also, in broad terms, females constitute only a small portion of those who purchase jet skis. The total number of people in the market isn’t particularly beneficial if your product service is not able to meet the needs of the majority of the population. The majority of products and services are not.
- Total households. In certain situations, determining the number of households is crucial, based on the business you run. For instance, if, for example, you offer heating and air conditioning equipment Knowing the total number of households is more important than just knowing the population of your region. When people buy HVAC equipment, “households” consume those units.
- Median income. It is essential to have a spending capacity. Is your market area able to have enough money to buy enough of your goods and services to earn an income? Certain regions are more financially affluent than others. Don’t think that every city or neighborhood is identical in terms of expenditure power. The service that’s viable for New York City may not be feasible in your city.
- The income of a demographic. It is also possible to determine the levels of income by age category, by ethnic group and gender. (Again the amount of money you can spend is a crucial quantity to measure.) Senior citizens may be earning less that females or males 45-55 in the midst stage of their career. If you are planning to sell your services to local businesses. In this case, you should find out how much they are currently spending for similar products and services.
It is important to first understand the market’s general characteristics and then to discover if there are certain segments in that market–the ones you’re planning to target — that could be customers and help the growth of your company.
Keep in mind that if you intend to sell items online, the marketplace worldwide is saturated and highly competitive. Every business is able to sell products online and transport that product all over the globe. Don’t just assume that simply because “the bike industry has a $62 billion industry” (a number I’ve came up with) that you will be able to capture some significant percentage of that market.
However If you reside in a city with 50,000 inhabitants and only one bicycle shop you could be able join the market and draw the majority of cyclists in your region.
Remember that it’s much simpler to be a part of a market that you know and measure.
When you’ve finished your research, you could be feeling overwhelmed. While data is beneficial and it’s great to have more data however, sorting through and understanding all the data is difficult.
To create your business plan you should narrow your focus, and focus on answering these key questions:
- What’s your target market? Include geographical descriptions as well as demographics for your target audience along with company information (if your business is B2B). In short, who are your clients?
- What market segment will you target? What is the niche you’ll try to create? What percentage of the market do you intend to conquer and gain?
- How big is your desired market? What is the size of the population, and their spending habits as well as levels?
- What do they need from customers and be inclined to purchase your goods and services?
- What price will you set for your services and products? Are you a low cost service provider or provide added value services at higher prices?
- Does your market have the potential to increase? What is the amount? Why?
- What can you do to increase your market share over time?
The Market Opportunities section of our bicycle rental business might be something like:
The amount of money spent on bicycles has reached $9,250,000 in the four states in VA, WV, MD and NC in the last year. We expect the sales to increase however, in the interest of conducting a prudent analysis, we’ve projected that there will be no growth over 3 years to come.
In those states, 2,500,000 people visited national forests in the year 2000. Our primary market is those who visit in the Shenandoah National Forest; last year, there were 120,000 visitors to the area in the summer, spring, and autumn months.
In the future we are expecting rental and sales of equipment to rise as the popularity of cycling continues to grow. Particularly, we anticipate that there will be a surge in demand for 2015, since the road racing championships of the nation take place at Richmond, VA.
Population trends and participation rates favor our venture:
- Sports that are recreational in general, and those that are family-oriented as well as “extreme” sporting events continue grow in visibility and recognition.
- Western VA and eastern WV have seen growth in population almost double the rate of the nation in general.
- Trends in the cycling industry indicate that the growth of cycling is faster rate than other activities for recreation.
According to the most recent research the amount of recreation expenditure in the target market has increased by 14 percent annually over the last three years.
We also anticipate higher than the industry norm on cycling events in this region because of the growing the popularity of cycling events such as The Alpine Loop Gran Fondo.
Our target market has one fundamental need: the possibility of obtaining bicycle rentals at an affordable cost. Our only competition is the bicycle shops located in Harrisonburg, VA, and our location will provide us with an advantage over them and other businesses that try to cater to our market.
And and so it goes on …
You might want to add more categories to this section , based on the specific industry you work in.
In this case, for instance, you may choose to include information on Market Segments. In this instance the business of renting bikes doesn’t require a lot of segmentation. Rentals are usually not divided into categories such as “inexpensive,” “midrange,” and “high-end.” In general, rentals are more than a product. (Although you’ll find on our Products and Services section, we’ve decided to offer “high-end” rental bikes.)
However, suppose you decide to create an apparel store. It could be focused on fashion-forward, kids’ clothes, casual, or outdoor clothing. You might segment your market in many ways. If this is the case then provide a detailed explanation of the segmentation you’re planning to use that is in line with your strategy.
The trick is to determine your market and then demonstrate how you intend to be able to serve that market.
Marketing and Sales
The ability to offer great services and products is great, but the customers should be aware that these products and services are available. This is why strategies and marketing plans are essential to the success of a business. (Duh, right?)
However, remember that marketing isn’t just about advertising. Marketing, whether through public relations, advertising marketing literature, etc.–is an investment into the development of your business.
As with any investment marketing investments will yield a return. (Otherwise why would you invest in it?) The return might be more cash flow, successful marketing strategies result in more profits and sales.
Don’t just plan to spend money on a range of advertising strategies. Research and design an effective marketing strategy.
Here are a few of the fundamental steps to take when developing your marketing plan:
- Concentrate on your market. Who are your potential customers? Who do you want to target? Who decides? Decide how best to connect with potential customers.
- Examine your competitors. Your marketing strategy should distinguish you from the rest and you cannot make a mark without knowing your competition. are aware of your competitors. (It’s difficult to stand out in an audience in the event that you aren’t aware of the place where everyone else is.) Find out about your competition by collecting details about their services, products prices, quality and marketing strategies. In terms of marketing What does your competition accomplish that is successful? What are their weak points? How do you develop an effective marketing strategy that emphasizes your advantages to your clients?
- Think about your branding. What customers think of your company can have a profound influence on the sales. Your marketing plan should continuously increase and strengthen your brand. Before you even begin marketing your business, you should think about what you would like that your advertising reflect your company and the offerings and products. Marketing is the image you project of your business to prospective customers. Make sure that you present your best image on display.
- Make sure you are focusing on positive outcomes. What are the problems you can solve? What are the benefits you can offer? Customers do not think about the products they purchase, but rather in terms about benefits, solutions. Your marketing strategy should clearly define the benefits that customers can expect to receive. Make sure you focus on what customers receive instead of the services you offer. (Take Dominos; theoretically they’re in the pizza business, but in reality they’re in the delivery business.)
- Concentrate on differentiation. Your products and services need to stand out from other competitors in some manner. How can you stand out with regard to cost, quality, or service?
Focus on providing details and a backup to your marketing strategy.
Questions to consider:
- Which is the budget you are using for marketing and sales initiatives?
- What will you do to determine whether your initial marketing strategies are working? What ways can you adjust in the event that your initial efforts are unsuccessful?
- Are you in need of sales reps (inside or outside) to help promote your product?
- Do you have the ability to create public relations efforts to you promote your company?
The Sales and Marketing department of our business that rents bikes could be set up in the following manner:
The market we target that we target for Blue Mountain Cycling Rentals is the western region of VA Eastern WV as well as southwest MD as well as northern NC. While the counties that surround that George Washington National Forest make about 35 percent of our possible customers, the majority of our customer base is beyond that geographical area.
The marketing plan we will adopt for us is going to be centered on three main initiatives:
- Road signs. The forest’s access is limited to a handful of main entrances. Visitors arrive at these entrances along one of the major roads. Since many customers rent bikes in the nearby town of Harrisonburg the road signs will convey our unique value proposition to any potential customers.
- Web-based initiatives. Our website will draw potential guests to our resort. We will collaborate with local businesses serving our market segment to offer special discounts as well as incentives.
- Events for promotion. We’ll hold regular events that feature professional cyclists, including demonstrations and autograph signings to draw more customers into the store and to bring the athletes “brand” into our own brand.
We are not a cheap supplier in our target market. Our aim is to offer top-quality equipment that is mid-priced. We will however, develop loyalty programs on the web that encourage customers to create online profiles, reserve and renew rental equipment on the internet, and offer discounts for those who use. As time passes, we’ll be able to advertise specifically to these customers.
And and so to …
Similar to just like the Market Opportunity section, you might want to add couple of additional categories. For example, if your business involves a commission-compensated sales force, describe your Sales Programs and incentives. If you sell products to other businesses or suppliers, and these distribution plans will impact your overall marketing strategy outline your distribution Strategy.
It is crucial to demonstrate you know your target market and how you can be able to reach the market. Promotions and marketing must bring in customers. Your objective is to clearly detail how you’ll attract and retain your customers.
Keep in mind that you may wish to include some examples of marketing materials that you’ve already created, such as websites, print advertisements, web-based advertising programs and so on. Although you don’t have to include examples however, taking the time develop actual marketing materials could aid you in understanding and explain your marketing strategies and goals.
Check that your Sales and Marketing department addresses the “How do I get my customers to me?” question.
The section on Competitive Analysis of the business plan dedicated to studying your competitors, both your current competition as well as potential competitors that could enter your market.
Every business is competing. Knowing how your strengths compare to those of rivals — or potential competitors is crucial to make sure that your company survives and expands. Although you don’t have to employ a private investigator however, you must be able to evaluate your competitors regularly, even if you intend to operate a modest company.
Smaller companies are more susceptible to competition, particularly when new businesses enter the market.
Analyzing competitive analysis can be extremely difficult and time-consuming, but it does not have to be. This is a straightforward procedure you can follow to analyze, identify and identify what strengths as well as weaknesses you have in your competitors.
Profil Today’s Competitors
The first step is to create a overview of each one of your competitors. For example, if , for instance, you intend to start an office supplies store, you might be competing with three stores within your area.
Online retailers also offer competition, however thoroughly studying the companies you’re competing with will be less important unless you’d like to sell office equipment on the internet. (Although it’s possible that they, or Amazon are your actual competitors. Only you can tell this.)
For making the procedure more simple make it easier, focus on analyzing businesses that you directly compete with. If you intend to set up your own accounting company it will be competing with other accounting companies within your region. If you intend to start the first clothing store, you’ll be competing with other retailers of clothing in your region.
In addition, if you operate an apparel store you are also competing in the marketplace with retailers online, however there’s not much you can do to stop that kind of competition, apart from trying to stand out by other means: excellent service, helpful salespeople, flexible hours, genuinely knowing your customers, etc.
After you’ve identified your top rivals, respond to these questions for each. Also, be impartial. It’s simple to spot weak points in your competitors however it’s much more difficult (and more difficult) to determine the ways they might be able to surpass you:
- What are the strengths of these companies? Cost, service, ease of use and the vast inventory are just a few areas in which you might be in danger.
- Which are the weaknesses they have? These weaknesses are opportunities that you must be prepared to seize.
- What are their primary goals? Do they want to expand their market share? Do they try to attract the attention of premium customers? View your industry by their perspective. What is it they are trying to accomplish?
- What strategies are they using? Examine their advertising public relations, advertising, etc.
- How do you steal your market share from their company?
- How will they react to you when you go on the market?
Although these questions might seem to be a huge task to address, in actual it should be relatively simple. You’ll already be aware of the strengths and weaknesses of the competition, if you understand the market you are in and your sector.
To collect information You can also:
- Visit these websites as well as marketing material. A majority details you require regarding services, products pricing, costs, and business goals should be easily accessible. If this information isn’t accessible, you may have discovered a weakness.
- Visit their places. Check out the. Take a look at sales and promotional materials. Invite your friends to stop by or contact you to inquire about details.
- Examine their advertising and marketing campaigns. Advertising strategies for a business provide an opportunity to understand the goals and strategies of the company. Advertising will help you identify how a business positions its self, who it sells to, and what tactics they employ to connect with potential customers.
- Browse. Look on through the Internet to find news stories, information, public relations as well as other mentions of your competitors. Look up Twitter and blogs in addition to review and recommendation websites. While the majority of the data you gather will be unsubstantiated or based upon the perceptions of a handful of people, you could at the very least gain a glimpse of the perception of some customers have of your competitors. You may also receive an advance notice of plans for expansion and new markets they plan to explore, or even changes to management.
Be aware that competitive analysis can do more than assist you in understanding your competition. The analysis of competitive dynamics can aid you in determining the modifications you need to implement for the business plans. Take advantage of strengths of competitors and take advantage of their weaknesses, and then apply the same method for your business strategy.
You may be amazed by what you can discover about your company by looking at other companies.
Determine potential competitors
It’s difficult to anticipate when and when new competitors might appear. To begin, you should search regularly for information about your industry, your product or services, and your intended market.
There are different ways to determine when competition will enter the market. People around you may be looking at the same opportunity that you do. Consider your company as well as your field and see if you meet the following criteria there is a chance that you will be competing with others is the way to go:
- The industry has very high margins of profit
- The process of entering the market is simple and cost-effective.
- The more quickly it expands, the higher the chance of the threat of
- Demand and supply is not equal. The supply is low , and demand high.
- There is very little competition which means there’s ample “room” for other players to come in
In general terms, if catering to your market seems straightforward, then you are able to think that competitors will eventually come into your market. A well-designed business plan is one that anticipates and accounts for the emergence of new competitors.
Then, distill the lessons you’ve learned by addressing the following questions within your own business plan.
- What are my current competitions? Which is their share of the market? How do they perform?
- What are the markets that current competitors are targeting? Do they concentrate on a particular type of customer or on the general market, or one particular segment?
- Are businesses competing expanding or reducing their activities? Why? What does this mean for your company?
- What will make your business distinct from competitors? What weaknesses of competitors can you capitalize on? What competitive strengths do you have to overcome in order in order to be successful?
- What do you do in the event that competitors disappear from the market? What are you going to do to make the most of the chance?
- What do you expect to happen when new competitors appear on the market? What will you do to respond and meet new issues?
Our Competitive Analysis segment of our business of renting bikes could begin as follows:
Our closest and most sole competitor is the bike shop in Harrisonburg, VA. Our next closest competitor is more than 100 miles from us.
The bike shops in town are strong competitors. They are established companies with great reputations. However they have less expensive equipment and are far more difficult to access.
We don’t plan to sell bicycles during at the very least the first two years in operation. However, those who sell new equipment compete with our company as a purchaser of equipment is no longer required to lease equipment.
When we later introduce new equipment sales into our business, we will encounter competition from online sellers. We will compete against new equipment retailers with individualized customer service as well as targeted promotions to our current customers, particularly via online-based initiatives.
- With mid-to top-quality equipment We offer customers with the chance to “try out” bikes that they might want to purchase in the future offering additional benefits (besides the cost reductions) to utilize our services.
- The availability of drive-up and express return services for rental bikes will be seen as a better option when compared to the burden of renting bikes from Harrisonburg and transferring them to the locations where they are intended to take off to ride.
- Online initiatives such as online renewals or online reservations improve our customer experience and position us as a leading provider in a market that is heavily filled, particularly in the segment of cycling by those who are known to be early adopters of technology.
- Rental of bicycles and bikes could be viewed by a portion of our customers as a transaction that is viewed as being a commodity. If we fail to stand out in terms of the quality, convenience, or service, we might encounter additional competition from competitors to the market.
- One of the bicycle shops located in Harrisonburg is part of a larger business that has significant financial assets. If we do, as we would like to achieve a significant percentage of market shares, the company might use the assets to improve the quality of service, increase the efficiency of equipment or reduce prices.
And and so it goes on …
Your business plan is intended for convincing that you that your business is a good idea and makes sense, you should remember that the majority of investors will scrutinize your analysis of competition. One common error that entrepreneurs make is to assume that they can “do the job better” than their competitors.
Business professionals who have been around for a while know that you’ll be up against stiff competition. Showing that you know the competition, comprehend what strengths you have and your weaknesses in relation to the competitors, and recognize that you must adjust and adapt to the competition’s importance.
Even if you never plan to raise funds or attract investors, you must be aware of your competitors.
This Competitive Analysis section helps you to answer the “Against who?” question.
The next step to create the business strategy is to design an Operations Plan that can assist your customers, maintain your operating expenses within a certain range and guarantee profitability. The ops plan you create should outline methods for managing staffing manufacturing, fulfillment and inventory, as well as other aspects that goes into running the business day-today basis.
It is a good thing that entrepreneurs tend to have a better grasp of their operational plan than every other element of the business. For one thing, although it may not be easy to look at your market or competitors many budding entrepreneurs are likely to spend a significant amount of time contemplating how they can manage their business.
It is your goal to answer these questions in order:
- What equipment, facilities and other supplies do you require?
- What is the structure of your company? Who is accountable for what areas of your business?
- Are research and development activities required in the beginning or as a continuous operation? If so, how can you complete this task?
- What do you need to staff your first? What is the best time and method to expand your staff?
- How can you build business relations with vendors and suppliers? How will those relationships affect your daily business?
- What will the way you conduct business change in the event of a company’s growth? What actions will you do to reduce costs when the business initially isn’t performing to expectations?
Plans for operations should be specific to your business as well as your market sector and the customers you serve. Instead of offering an example, as I’ve previously done for other sections, you can use these guidelines to determine the most important areas that your plan will be addressing:
location and facility management
In terms of the location Define:
- Zoning requirements
- The kind of building you require
- The space you require
- Energy and utility needs
- Access: Customers, suppliers, shipping, etc.
- Renovations or constructions that are specialized.
- Interior and exterior renovations and preparation
- Methods of production
- Methods for service delivery
- Controlling inventory
- Customer Service and Sales
- Receiving and delivery
- Cleaning, maintenance and re-stocking
- Permits and licenses
- Regulations on health or the environment
- Patents trademarks, copyrights, and patents
- The typical staffing
- Skills needed to break down
- Retention and recruitment
- Procedures and policies
- Pay structures
- Expected inventory levels
- Rate of turnover
- Lead times
- Demand fluctuations during the winter months
- Major suppliers
- Backup providers and plans for contingency
- Payment and credit policies
Does it sound like an awful lot? You could be right however, none of the above should be included in the business strategy.
You must think through and develop a strategy for each area However, you shouldn’t be required to communicate the results to those who will are reading your business plan
Identifying every issue and creating specific plans for operations can help in two main ways:
- If you’re not planning to look for financing or capital, you may nevertheless benefit from creating an overall plan that covers all your operational requirements.
- If you are looking for external capital or financing it is possible that you do not include all the details in your business plan, but you’ll be able to answer all questions related to operations you may have.
Imagine operations as an “implementation” portion of your plan for business. What are you required to accomplish? What can you do to complete it? Create an outline of your plan to ensure your timeline and milestones are logical.
The operations section will answer to the “How?” question.
Many lenders and investors believe that the expertise and the reliability that the team of management has is among the most important aspects that are used to assess the potential of a brand new venture.
However, putting effort in this Management Team section will not only help those who have a look at your plan. It can aid you assess the abilities, knowledge and resources that the management team needs. The way you address your company’s needs throughout the process will have a significant difference to your chances of success.
The most important questions to be answered:
- Who are the leaders of the organization? (If the actual leaders haven’t been identified, provide the kind of people required.) What are their experience or educational background, as well as abilities?
- Are your top leaders equipped with any experience in the field? In the absence, what knowledge do they bring to your company that can be applied to it?
- What responsibilities will each position do? (Creating an organizational chart could help.) What is the authority granted to each position and what duties are assigned to each post?
- What are the salary levels needed to attract qualified candidates for each job? What is the structure of salary for the firm, according to post?
Our Management Team section for our bicycle rental business might begin similar to this:
Jim Rouleur, Owner and Manager
Joe has more than 20 years of experience in the business of cycling. He worked for ten years as a product manager at Acme Bikes. Then he became the director of operations for Single Track Cycles, a fully-service bike shop that is located within Bend, Oregon. He holds a bachelor’s education in the field of marketing at Duke University and an MBA from Virginia Commonwealth University. (A full resume of the Mr. Rouleur can be found in the appendix.)
Mary Gearset, Assistant Manager
Mary is her 2009 U.S. Mountain Biking National Champion. She was involved in the development of products in the field of High Tec frames, creating custom frames and modifications to frame specifically for professionals. She also has years of sales and customer service experience as she worked over four years in the position of manager of online at Pro Parts Unlimited, an online retailer of premium bicycle equipment as well as accessories.
And and so to …
In certain instances, you might be able to write down your plans for staffing.
For instance, if you create an item or offer services and plan to employ a highly skilled employee, list that employee’s qualifications. In other cases, add plans for staffing in the section on Operations.
One important point:Don’t be tempted to include the “name” for your managerial team in the hopes that you can attract investment. The management team of celebrities could draw the attention of your readers but experienced investors and lenders will instantly inquire about the they will have in running the company. In most cases, the individuals will not play any role of any significance.
If you’re not a great source of experience, but you are determined to overcome the absence of experience, do not be enticed to include in your business plan who do not be working in the field.
If you’re not able to live without assistance, it’s fine. It’s actually expected and no one can do anything worth doing by themselves. It’s best to plan to seek assistance from the appropriate people.
In the final phase, when creating Your Management department, concentrate on qualifications, but pay particular attention to what each individual will actually accomplish. The reputation and experience of a person are important however, action is the most important thing.
So, your Management section can be able to answer the “Who is responsible?” question.
The numbers tell the story. The bottom line results show the performance or lack of success of any company.
Financial projections and estimates can help entrepreneurs, investors, and lenders or lenders to evaluate a company’s likelihood of succeeding. If a company is seeking external financing, providing complete financial statements and analysis is essential.
Most importantly, budgets will tell you if your business is capable of making a profit, and if not tell you that you’ve got more work to complete.
Most business plans have at least five of the most basic documents or projects:
- Balance Sheet: It outlines the cash position of the company, including the company’s assets, liabilities, shareholders and the earnings that are retained to finance future operations or as a source of financing for growth and expansion. It is a measure of its financial condition of a company.
- In addition, it is known as the Profit and Loss Statement it lists the projected revenues and expenses. It reveals whether a business is profitable in the time frame.
- cash flow statement: A projected of cash receipts as well as expense payments. It outlines how and when cash is expected to move through the business. without cash, transactions (including salary) are not possible.
- Operating Budget: A comprehensive breakdown of expenses and income and provides a roadmap to how the business will be run from an “dollars” perspective.
- Break-Even Analysis. A forecast of the income required to pay for all fixed and variable costs. It identifies when, in certain conditions, an organization will be able to make a profit.
It’s simple to find examples of each of the above. All accounting programs provide templates and sample. There are also templates in Excel as well as Google Docs. (A simple search such as “google Docs profit and loss statements” will provide many examples.)
It is also possible to consult with an accountant prepare the financial forecasts and other documents. You are certainly welcome to work with an accountant however, you must first experiment with the reports on your own. Although you don’t have for an accounting degree in order to manage a business, it is important to be aware of the numbers. And the best way to grasp your numbers is to use your numbers.
However, the tools you use to calculate your numbers isn’t more important than whether your numbers are as precise as is possible. Also, whether the numbers will help you decide whether you should take the next step and implement your business plan in the real world.
If so, Financial Analysis can help you determine the most important business concern: “Can we make a profit?”
Some business plans contain not as important, but could be important information in the appendix section. It’s possible to include, as a backup or other details:
- The resumes of the top leaders
- Additional descriptions of the products and services.
- Legal agreements
- Charts of organization
- Examples of advertising and marketing collateral
- Photos of possible products, facilities, etc.
- Back-up for research on markets or analysis of competitive factors
- Other financial documentation or forecasts
Be aware that creating an appendix is typically only required if you’re looking for funding or are trying to attract investors or partners. At first, the people who are reading the business plan won’t be able to go through reams and numerous numbers, charts and backup details. If someone does wish to go deeper, he can look over the information in the appendix.
So that your business plan can tell your story concisely and clearly.
If you did not, then since you wrote the plan for your company, you must already have a backup.