Business Plan: The Importance of Having a Solid Business Plan
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What's So Important About a Business Plan?
If you're thinking seriously about starting a business of any sort, no matter the size it's important to have a good solid business plan to start you off on the right foot. What's more important is to have a business plan that's solid and hole free, that will win over potential capital venture money from banks, the Small Business Administration, Angel Investors, or a Capital Venture Firm.
What a Detailed Business Plan Can Do for Your Success!
Whenever you present to these types of lenders your business plan you want to be sure to make it as perfect as possible, while trying to get it right the first time.
It's imperative that you realize the fact that these lenders are looking at the action of lending you money as a risk on their part. This is why a lot of banks will not loan money to start up businesses because of this risk. This is where private venture capitalists and angel investors come in to save your butt.
In either case, you need to have a business plan that covers every little detail, "every" means "EVERY"!
Your business plan is also an important success factor for you as the entrepreneur personally as well. Not having a plan for your start up business is equivalent to setting sail from New York to France without a compass.
You need a business plan to be able to detail every last bit of your journey from a start up company to a successful one.
There are different types of business plans from the simplest to the most comprehensive such as a formal business plan that you would use to obtain venture capital funding.
Depending on your needs and the size of your business will decide the elaboration of your business plan. However, it's very possible that the need for funding in the form of a business loan may come up at some point or another.
For this reason your best bet would likely be to sit down and devise a solid formal business plan from the get-go.
This will do you a lot of good not only for your own sake while having a nice detailed plan, but will give you the jump start on your funding endeavors as well.
A search online can get you results for tons and tons of business plan samples, as well as give you contact information for business plan consultants as well.
If you've never had any kind of experience writing business plans what-so-ever then it may be a good idea to hire a consultant. It may be the most important money that you'll ever spend in fact. That being said, regardless of where you get your help, just be sure that you do yourself a great favor by starting your business out correctly and creating a fundamental business plan.
It's imperative that you realize the fact that these lenders are looking at the action of lending you money as a risk on their part. This is why a lot of banks will not loan money to start up businesses because of this risk. This is where private venture capitalists and angel investors come in to save your butt.
In either case, you need to have a business plan that covers every little detail, "every" means "EVERY"!
Your business plan is also an important success factor for you as the entrepreneur personally as well. Not having a plan for your start up business is equivalent to setting sail from New York to France without a compass.
You need a business plan to be able to detail every last bit of your journey from a start up company to a successful one.
There are different types of business plans from the simplest to the most comprehensive such as a formal business plan that you would use to obtain venture capital funding.
Depending on your needs and the size of your business will decide the elaboration of your business plan. However, it's very possible that the need for funding in the form of a business loan may come up at some point or another.
For this reason your best bet would likely be to sit down and devise a solid formal business plan from the get-go.
This will do you a lot of good not only for your own sake while having a nice detailed plan, but will give you the jump start on your funding endeavors as well.
A search online can get you results for tons and tons of business plan samples, as well as give you contact information for business plan consultants as well.
If you've never had any kind of experience writing business plans what-so-ever then it may be a good idea to hire a consultant. It may be the most important money that you'll ever spend in fact. That being said, regardless of where you get your help, just be sure that you do yourself a great favor by starting your business out correctly and creating a fundamental business plan.
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- ank ank Jun 21, 2007 @ 11:50 am
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What Shoud Go Into Your Business Plan?
First of all, it's likely that you've never written a business plan before, and so there's nothing wrong with not knowing how, but it's crucially important that you take the time to put exactly what's needed into your business plan right the first time.
Doing this will make it a ton easier to get loans from banks, as well as funds from venture capitalists, venture capital firms, and Angel Investors.
In order to make it easier for you to get started, here are the 5 crucial aspects of a good solid business plan.
Doing this will make it a ton easier to get loans from banks, as well as funds from venture capitalists, venture capital firms, and Angel Investors.
In order to make it easier for you to get started, here are the 5 crucial aspects of a good solid business plan.
- Executive Summary - Okay, don't let the first part of that phrase scare you into submission. Just focus on the second part, "Summary". So what this basically means is that you have to summarize your business, but in a compelling way that's pretty much going to sale your business idea to prospective lenders. It's sort of like your elevator speech, only a bit more detailed.
In it you'll give your main idea, and who you're target market is going to be, and what problem you'll be solving for them. There are examples of the Executive Summary for business plans online. - Your Operation Plan - How you'll be running your business to make it successful. Operational stuff that makes a business happen%u2026staff, purchasing, supplies, etc.
- Marketing Plan - Okay, here's the more exciting part and where you'll want to go to town.
Why?
Because the only way any business is to survive is by making the sell. You'll want to know who your target market is, how you'll market to them (tv, radio, direct mail, internet) and what you'll do with them once you've captured their attention and created a lead out of them. The more detailed you are here the more likely a potential lender is going to see that you know what you're talking about. - Finances - Here's where you'll crunch the numbers, show that you're a company that's in the positive mode of the financial side and how you'll stay that way. This is a pretty straight forward section and should remain that way, so nix the creativity here.
- The Management - Who the heck is running your business with you and what they'll be doing. Make sure to include what your management teams strengths are, why you consider them loyal, and how they'll interact with one another to make it a smooth sailing operation!
Why it's Vital to Create Specific Business Plans for Specific Businesses!
Every business is different in both needs and wants frankly. To have a much better chance for success in any business venture it's best to make a specific business plan for each specific business.
Here's a list of links to get sample business plans for these specific businesses...
Here's a list of links to get sample business plans for these specific businesses...
- Starting a Seed and Start-Up Stage Business
- Learn to include a sales forecast, cash flow forecast and a projected profit and loss account...plus more essentials for a Seed and Start-Up Business.
- Self Storage Business Plan
- Learn why your business plan should include market and competitor information, which will outline what part of the market you're targeting, as well as identifying key competitors and what separates you from them.
Plus many more essentials...
Need to Update or Fix Something On Your Business Plan?
Here's How to Do It With Microsoft Excel...
How to edit a business plan in Microsoft Excel
BusinessPlanWorld.com - Tutorial Topics: Navigating the MS Excel Tabs About What will be covered in this tutorial: Navigating the MS Excel Tabs About the Start Up Costs Startup Costs and Balance Sheet Relationship Project Costs and Owners Investment About the Balance Sheet Disclose everything do not hide any debt About the cashflow About Financial Leading Indicators About Sales to Debt Ratio Where to find financial leading indicators How to edit the Cashflow How to use Paste Link in MS Excel The Cashflow and Income Statement relationship How to generate your income statement How to forecast income statement Y1 and Y2 Tips on changing the spreadsheets ------------------------- For more information visit: http://www.businessplanworld.com
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