| ign="center"> | | | | a projected balance sheet, a profit and loss |
| To create a business plan is one of the most | | | | account and an analysis of cash flow. It is |
| important things that you will do with starting up. | | | | important to be as accurate as possible. E.g. |
| It will help you to determine whether you gain | | | | ensure your numbers demonstrate that you and |
| funding from potential investors, and it will help | | | | your management team have considered the key |
| you to clarify your business objectives and | | | | 'drivers' that will determine your success or failure. |
| direction. | | | | Don't fill the business plan with overly optimistic |
| How to write an effective business plan- | | | | financial projections that could ultimately depict |
| Before you begin writing - | | | | your business in a bad light. |
| Before writing a business plan, you will need to | | | | 4. Sales and marketing objectives |
| consider what information you need to assemble, | | | | Describe your intended market, giving specific |
| the initial decisions to be made, and the sales and | | | | details on its size and how much of it you intend |
| marketing options open to you. | | | | to serve. Define- what’s your |
| After that, assess the expertise and the | | | | market’s growth potential? What specific |
| assistance that you already have and decide the | | | | geographic and economic factors play a role? |
| additional help you will need to prepare your plan | | | | Competitors are the crucial factor, playing a vital |
| and harness your resources effectively. For | | | | role behind the success of yours’. Name |
| example, you might need accountancy or | | | | your largest competitors and explain why you can |
| marketing assistance. | | | | serve your market better than these rivals. Do |
| Most importantly, you need to examine and | | | | not conceal your weaknesses: recognizing the |
| analyse your business critically, and also check | | | | challenges you must overcome shows that you |
| these against your initial perception of the | | | | are realistic. |
| marketplace. Get a ‘SWOT’ analysis on | | | | 5. An executive summary |
| your business, and watch out its Strength and | | | | An executive summary shows the highlights of |
| Weaknesses, considering the open opportunities | | | | each section of the business plan, providing a clear |
| along with the Threats you face. | | | | synopsis of who you are, what you do and |
| Your marketplace is the key to the success of | | | | where you're heading. |
| your business. You should review the market for | | | | One should also be very careful to avoid some |
| your goods or services, and the competition you | | | | common pitfalls, such as - |
| face. In order to identify potential segmentation, | | | | 1. Over-optimism - Most business plans are |
| you should use market segmentation, and market | | | | over-optimistic, especially as regards predicted |
| survey methods to characterize your customers | | | | sales, often massively overestimating the size of |
| and their needs. | | | | the market. Research your market thoroughly. |
| Presentation - | | | | Too many business plans include a SWOT |
| Presentation is one of the most important parts | | | | analysis, but concentrate on the strengths and |
| of your Business Plan as it represents your plan | | | | opportunities and ignore the threats and |
| to your financiers, and influences them to make | | | | weaknesses. |
| an investment on your plan. Take this into | | | | 2. Ignoring the competition - Study your |
| consideration that the length of the business plan | | | | competitors and try to anticipate their plans. |
| should be short enough to maintain the interest of | | | | 3. Ignoring risk - What are the risks attached to |
| any potential investor. | | | | the plan? Think through these and consider the |
| The presentation should be professional and clear, | | | | costs of failure as well as the rewards of success. |
| with graphics and charts where appropriate. | | | | An ongoing process — |
| Essential ingredients that needs to be taken care | | | | Writing a business plan is an on-going process, and |
| of- | | | | not to abandon or forget about your business |
| Your business plan should Include: | | | | plan after you’ve presented it to investors. |
| 1. A business description and mission statement. | | | | Your business plan should adapt to your company, |
| Every business needs a clear declaration of why it | | | | its market and the economy - and that means |
| exists, and a basic description of how it intends to | | | | regular reviewing and updating. |
| meet its primary objective. Provide a brief history | | | | Creating a business plan open up the plan with the |
| and then explain what it does, identify the | | | | realities of business. Keep it updated, and help |
| marketplace niche it fills and assert why you and | | | | yourself to stay on right track. |
| the business will succeed. You may also wish to | | | | Report this article |
| reveal why your business chose its location and | | | | This article is free for republishing |
| how you will benefit the local community. | | | | Source: |
| 2. Management and people profiles- | | | | Republish this article |
| Provide an outline of your organizational structure | | | | |
| and management team, giving solid reasons why | | | | Ask a Question About this Article |
| you and any colleagues are competent and can | | | | >> What advice would you give to newbie |
| deliver results. | | | | woodworkers? |
| 3. A financial portrait and strategy | | | | >> What sites can I read to learn the many |
| Prospective investors and lenders need a good | | | | basics and points of Accounting (for Business |
| idea of the financial aspects and potential of your | | | | Operations)? |
| business. Include projections of basic data such as | | | | >> Do all cell phones have a cam? |