Remarkable Business Plans: What Are They All About?

A well-structured carefully written business plan is a crucial step in the life of every startup. It can make it or it can break it, so it is very important to take the time and write it down in a clear and efficient manner.

Wondering why everyone is emphasizing its importance? Its main purpose is to communicate to every single person involved in the organization of the newborn company what are the goals and how are they going to be reached. If you are planning to get funding from external sources, other than your savings, friends or family, this is the document that will decide the fate of your dream.

To make things easier, here is everything your file should contain:

• The executive summary – short description of the key points in the business plan, usually created for an external audience.
• The company description – a brief explanation containing essential information about the company: activity, goals, targeted audience etc.
• The market analysis – a more complex study in which the entrepreneur has to specify the conditions, factors and characteristics of the market his product/service is addressing to. In the case of startups, few highlights should be on the metrics investors are looking for, on funding requests etc.
• Managerial and organizational details – how is the entrepreneur planning to run the company? Everything from management strategies to the smallest details related to administration should be included here.
• Product/Service Description – What is the product/service doing exactly? Who is it addressing to? Features, highlights and most of all, benefits must be all mentioned.
• The marketing strategy – How is the product/service going to be promoted on the market?
• The funding request – Include vital information such as: current funding requirements, as well as the future funding ones; how are those funds going to be used? Are there any strategic financial plans – for instances, a buyout, or a debt repayment plan.
• Financial forecast on a defined period of time – Financial goals should be included, as well as detailed explanations related to spending and how they will impact the budget, as well as the profit.
• The Appendix including resumes, permits etc.

Investors are known for analyzing business plans thoroughly, so in case you feel that you are in over your head and don’t know where to start, here is a short guideline to help you through!

#1 A Description Of Your Startup

Yes, it starts off that easy! Simply describe what your company is going to do and remember to be honest about all the aspects, even potential obstacles that might come across your way.

Make a short summary about the state of the market and your target audience. Formulate a value proposition when talking about the product you are going to create, instead of continuously looking for unique features that will make it stand out.

Put an emphasis on your market research, as most investors are willing to invest when the market potential is clearly exposed to them.

#2 Know Everything About Your Company

This means taking care of the financial aspects or, for instance, the location. You have to think about everything. Even things you might be tempted to leave out, like common licenses for computer programs.

The tiniest aspect you leave out could cut down your chances of getting that funding. Most entrepreneurs tend to fail because they are unaware of their budget and they spend more than they can afford. So, know all the numbers for every single fee you are about to pay, for every single piece of equipment you are going to buy, and so on.

#3 Adapt Your Plan To Your Audience

For instance, an investor will hold a special interest in the financial aspects, while a potential employee might be concerned about the structure of the company.

Make sure that the plan contains annual goals and that it does not exceed a period of 3 to 5 years. The more you look into the future, the less accurate your conclusions will tend to be. Don’t forget that, as the company expands, so should the business plan. Keep it updated year by year!

#4 Details To Get You Over The Edge

Going back to the market analysis, there is one thing you should know, something most inexperienced entrepreneurs tend to overlook: pricing power, or the impact of changing prices on your consumer’s demand.

Don’t get your hopes up and try not to be too optimistic when it comes to future sales and cost estimates.

#5 Remembering Your Motivation

With all this writing it’s important to take a step back and remember why you are doing this. Once you have managed to clear your mind, you will be able to go on with your business plan, not without keeping in mind that it shouldn’t reflect only financial goals, but also your core values and the values of the people you are going to address to.

Business plans are all about precision, but they also have a more personal side. Balance these two and you will find yourself at the beginning of a thriving company you are about to build from scratch!

 

 

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