A business plan is a very important part of any business. It is usually drawn up before the business launches, but can also be developed after a business has already taken off. A good plan can take some time to develop but the effort you put into it will be well worth it to make your business succeed. Not many people know exactly what goes into a good business plan. What alot don't realize is that each business plan is unique to each business. Just because a Candy Shop's business plan is successful for them doesn't mean it will be successful for a Webhosting business. Though the design of the business plan may be similar, it is truly the details inside that make it work.
Here is an example outline of a business I developed for Logo2D.com . This will give you an idea of some of the subjects that go into a good business plan:
1.0 Executive Summary 1.1 Objectives 1.2 Mission -------------------------------------------------------------------------------- 2.0 Company Summary 2.1 Company Ownership 2.2 Company History (for ongoing companies) or Start-up Plan (for new companies) 2.3 Company Locations and Facilities -------------------------------------------------------------------------------- 3.0 Products and Services 3.1 Product and Service Description 3.2 Business Advertising Program 3.3 Sourcing and Fulfillment 3.4 Technology -------------------------------------------------------------------------------- 4.0 Strategy and Implementation Summary 4.1 Customers, Target Market & New Technology 4.2 Competitive Edge 4.3 Marketing 4.4 Main Competitors 4.5 Strategic Alliances 4.6 Milestones -------------------------------------------------------------------------------- 5.0 Web Plan Summary 5 Development Information -------------------------------------------------------------------------------- 6.0 Management Summary 6.1 Organizational Structure 6.2 Personnel Plan -------------------------------------------------------------------------------- 7.0 Financial Plan 7.1 Break-even Analysis 7.2 Projected Profit and Loss 7.3 Projected Balance Sheet --------------------------------------------------------------------------------
As you can see it seems a little complex, but the best thing to do is to break it down into parts. Usually each category(Category 1-7) will remain the same on most business plans. Some categories may be added in or taken out all together. The key is to provide as much essential data as possible. For example on Number 5.0 - Web Plan Summary. You business plan mike look something like this:
Part: 5.0 Web Plan Summary 5 Development Information Logo2D.com has already developed the necessary tools for business including: - Business Identity Our logo is unique to us, displaying a eye appealing, unique symbol that when seen can be easily recognized as Logo2D.com creating brand labelling. - Ecommerce service Logo2D.com features a fully operational ecommerce website system that allows products to be added through an admin section on the site. It also has the ability to take, receive and process orders, remove sold products, creating promotional offers and coupons/vouchers and also displaying featured products on the front page of the website. Also included in the ecommerce program is an area to add, create and manage website ads placed on the Logo2D.com. - Website development All graphics for the website development have already been developed, coded and integrated into the ecommerce system. The website is live and taking orders on www.Logo2D.com - Products Development needed products(such as logos) have already be developed and an inventory of over 150 products are on the website at any given time. As soon as logo is sold(as well as during down times) a new logo/new logos are being developed to the highest of quality and added back onto the website. - Marketing Material Marketing plan and materials are in the works.
As you can see from above what details are given have already been researched and found out. There aren't any comments from a personnel stand point, just facts that have proven. You can also project different areas of your business plan but you will have to do some research on this as well. So when you are developing your business plan you want to deal with facts and information you already have or can get(not comments or guesses).
When developing a good business plan, research is definitely key. The effort you put into it will determine the effort you will put into your business.
What is a business plan? It's a detailed analysis of your business, including its objectives and its finances. It provides an insight into the purpose and vision for the company and how its goals will be achieved, and sets out the financial requirements for the company as well as its projected earnings potential.
Use it as a reference guide, which you can refer to at regular intervals to help you stay on the right lines. Don't treat it as gospel though ? business needs change over time and therefore so will the business plan. If you keep on top of this and amend your plan accordingly, it will help to ensure your business continues in the right direction.
There are two main uses for the business plan. The first is as a sales tool to help you present your case to lenders, investors and potential business partners. The second is for your own internal use, as a gauge against which you can measure your company's development and progress towards its objectives.
Your business plan therefore needs to be a compelling document that will impress people and convince them of your ability and the viability of your company. To make it credible, you'll have to back it up with detailed research and accurate financial forecasts. Be careful not to make it flat and lifeless though. Don't just present the facts and figures ? turn them into a meaningful and exciting business case. A word of warning though: keep your feet on the ground at all times and ensure that your analysis is truthful and realistic. Investors and lenders will see right through the hype if you overdo it. Also, it is in nobody's interest to create a misleading impression. On the other hand, though, don't aim too low. Objectives and financial forecasts that seem far too easy and conservative will not impress and will not provide you with any challenge or incentive to reach your company's full potential.
You need to make your report balanced. Be upfront about both strengths and weaknesses. Put a positive spin on the weaknesses, though ? demonstrate what you will do to overcome them.
Your true excitement and confidence in the business will only come across if you write the business plan yourself. It will also help you to develop an even deeper understanding of your business and what you are trying to achieve. There's no harm in asking experts for help with some of the tricky areas, though, such as the financial projections. It's also a good idea to get someone to look over it for you after you've completed it to make sure it flows, makes sense and forms a coherent whole.
The basic structure of a good business plan is as follows:
Summary ? a concise synopsis of your company and the plan. This may be the only part of your report that a potential investor or lender will read ? they are often inundated with similar reports and documents and can make snap judgements on whether something is worth further consideration based on reading these crucial couple of pages. Always write the summary once you've finished your plan to make sure you don't miss anything out. Make it confident and attention-catching.
Company information ? provide some context by outlining what your company is all about. Include the structure of the organisation, its history, information on the industry, an analysis of the customer base, a description of the products or services offered. You'll need to give all the facts to help the reader understand what your company does, but provide more than this. Don't just describe what your company does, but also what makes it stand out ? its benefits and key selling points.
The team ? outline a brief CV for each of the members of your senior team. Also include any external consultants whose services you employ. Make it clear what they can bring to the company. Then outline the structure of the rest of your company, perhaps using an organisational chart. Show the different departments if relevant and explain what types of positions will be held in each of these areas. Provide a plan as to how you will recruit, train and manage your workforce.
Promotion and sales ? here's where you should include all of your market research. Show that you fully understand your intended customers and your competitors. Outline how you will deal with competition in the market. Explain your plans for advertising your business and promoting your products and services.
Operations ? how will your business work? Provide details of where your company will be located, whether it will own or rent its premises, what materials and equipment you will need, what IT and other systems you will use, and who your suppliers will be.
Financial analysis ? Summarise the figures at the beginning of the section to outline the main messages ? numbers and graphs aren't always easy to interpret. Include costs for every area of your business and do an in-depth projection of the financial outlook for the company for the next year, as well as an outline sketch of the likely financial future over the next five years or so. You should include profit and loss accounts, cash flow, sales projections etc. Also outline how you arrived at these estimates ? the reader will want to be reassured that they weren't just plucked out of thin air. Also, as you're likely to need to borrow in order to start up your company, your financial analysis should include details of the amount of money you require, how it will be used and where you intend to obtain funding. Think of your business plan as an application form for loans or investors ? anyone who is considering backing you will want to see it.
Objectives ? be clear about where your company is going and what you hope to achieve in the form of solid objectives. As always, objectives should be SMART ? specific, measurable, achievable, relevant and time-bound ? in order to be meaningful and helpful. The objectives will give a clear indication of how you intend to achieve what you want for your business. To wrap up your plan, you could also include a more general future vision for your company, to give lenders or investors an impression of how your company will shape up and what financial returns they might receive from it.
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