Your Business Plan Is As Much For You As It Is For Investors
Everyone knows importance of creating a business plan; which is to get funding. But what many people don't know is how to create a business plan that will attract investors or get the bank to approve your loan.
You might have a great business idea, but that's something millions of other people have also. Many businesses in the past were started on the basis of great business ideas, but quickly vanished from the scene just because they skipped the most important step; a solid working plan!
Getting investors to lend you a bag full of money is one reason, but not the only purpose of a business plan. How you are going to utilize that money to generate revenue and compete with key players in the market is the main purpose of a well written business plan.
A well-crafted and researched plan provides a clear picture of business operations and entrepreneurial skills. Investors are always interested to see how aware the business owner or management team is regarding different aspects of business such as production, marketing, sales and distribution. Remember, lenders only look for three things in your plan:
- How big the business opportunity is?
- How strong is the management?
- What is the return on investment?
Does your plan answer those questions?
While there are many online resources such as software or business plan templates that are available to get you going; you must take care in choosing the one which best suits your business requirements. With that said, almost every business plan comprises common elements such as:
- Executive Summary: It is used to have a glance at the entire content of plan.
- Company Overview: It provides business introduction, concept and past achievements.
- Product / Service: This section provides details of products or services in which the business is involved.
- Market Analysis: This section provides comprehensive details of market in which business is operating.
- Marketing & Sales: Marketing and sales strategies are present here that entrepreneurs are planning to implement in the market.
- Management Strength: Expertise and skills of management are presented here.
- Financial Plan: This section deals with financial and statistical information regarding business operations.
When writing a business plan, the challenge most entrepreneurs face is answering questions that address everyone's needs.
This process is handled seamlessly when you use our 5 Step Business Start® Templates. After completing each training module, you simply fill in the blanks of the applicable template and voila, your business plan begins to come to life. Learn more about our Business Templates here.