Creating a business plan is an important way of presenting the plans and goals of a certain business. Besides, will allow you to have a positive outlook about planning how your business needs to be run. It will also include a “checklist” to help you be on the right track both financially and structurally.
Financially speaking, a business plan is a written document that is presented to attract money and financing for your developing business. It is your way of courting deep-pocketed investors to provide monetary needs for your business to stay up and running.
If you are a business starter, you can borrow funds to different loan providers to help you build your own business. However, it is better to keep an eye to one of the trusted ones. In Vidalia Lending, you can borrow a business loan to provide you with capital. You will also be ensured that a new business venture will have a place in the market.
Typically, there are two categories of business plans – the traditional business plan and the lean startup business plan.
A traditional business plan is a type of business plan that consists of a comprehensive and thorough step by step outline of your company. What is written here are the company’s background, details, goals, and its contribution to the marketplace. This type of business plan can be prepared in several pages, basically, all information must be within each page.
Another type of business plan is a lean startup business plan. It is composed of a thumbnail sketch that uses bullet-points to emphasize significant key points about your business. One page long is enough to fill this.
Using a lean startup business plan as a sales pitch is best to use for business starters like you. It is because this helps you to look for financiers who can be interested in your company once they check out your business plan. Following up with a more detailed and full traditional business plan when you finally catch their attention.
Below are the steps on how to write a business plan that might fill your company’s needs.
Step 1: Executive Summary
This serves as the introduction of your business plan. It outlines the necessary key points of your plan, stating what your company does and why it should be pursued. It includes the mission and goal/s.
Step 2: Business Description
On this page, you have to put on more details about your company and its solutions to bring to the market. This is where you explain specifically the products and services you are developing as well as your target costumers. Also, this page includes a brief history of your company.
Step 3: Market Analysis
Next section is the market analysis where you describe the marketplace you plan to compete in. This page should answer the following questions:
- Where are the best opportunities in your market?
- What is the marketplace?
- Who are your competitors?
- What are their strengths and weaknesses?
- How do you improve on the leading products or services
- What is the leading marketplace product or service?
- What is your initial move to improve on the leading products or services?
Answering all these may give the financing companies an idea of what separates your business from the marketplace.
Step 4: Company Organization
The company organization section discusses the operation of your company and its key decision makers. It states the company structure, the management hierarchy, and the ownership of the company.
Step 5: Products or Services Provided
The primary statement written on this page is the products and services you offer to the customers and the benefits that they can get in availing of those. Furthermore, it also adds the expectation of what you have researched in advance for the possible development of your company. Moreover, distinguish how you are going to market your products or services to your customers.
Step 6: Financial Outlook
You can record your financial projections in this page. Make financial data and list any income statement and cash flow numbers that you predict you need for the development of your company. Most company funders see this as the most important part of your business plan, so it should include accurate and thorough figures.
Step 7: Summary
This page sums up your entire business plan by adding supporting data like graphs and charts that will help strengthen your pitch. You can also provide added information about the funding you need to let them know you are open to negotiating.