Why prepare a business plan?
There are four main reasons why you should prepare a business plan. These are not mutually exclusive, and that the company changes and grows the business plan must be reviewed and revised since these issues also apply to a company established in a start-up.
The first is to design a broad sense. When preparing a business plan is being prepared on the first floor and the process is one to think through what you are going to do business, how you are going to do, which are separate projects, which must be completed to achieve the ultimate goal and when, what resources need to be in place and when, what the risks are and how they should be treated, and so on.
The second is to determine your action plan, which you can then evaluate the results and understand the likely economic and business requirements. You can examine the main emotions involved in your forecasts and evaluates financial risks and potential rewards involved.
It is essential that the third reason for preparing a business plan, which is often seen by some managers, wrongly, in my opinion, as the real point of this exercise is to provide investors or lenders support a request to raise funds .
The fourth reason is that the plan aims to compare the offers and milestones against which progress and success in business can be controlled.
So whatever the original reason for conducting business planning exercise, the management must always be used in the process as an opportunity to design a real business, not only to be used to create a document that has never looked back.
It must contain a business plan?
Now you can find many examples of business plan templates on the web that varies the content and the titles they use, there is no definitive list of contents. In general, however, the business plan should cover the following elements, which offers a package in a form that potential lenders or investors in general acceptable.
* Data as the number and logo;
* Content;
* Summary of a brief summary, which covers all areas and I must say that no more than 2 pages;
* History and Current Status;
* Products or services;
* The market;
* Operations;
* Management and staff including an organization chart, if necessary;
* Summary Economic Analysis of financial plans;
* Investors and donors Deal and exit plan, which is used to raise money plan which sets out proposals for the support you need and what's in it for the donor and
* SWOT analysis summarizes the strengths, weaknesses, opportunities and threats for the company.
The plan should also be supported by appropriate appendices, historical data audited financial and legal bills to date management accounts and financial forecasts for three years, all of which must, of course, like the body of own plan. It must also be non-financial information necessary to support the plan will normally include CV for each director and other key personnel, examples of marketing materials, details of the company's professional advisers and any other documents that may be relevant documents, such as important new orders.
To what extent do or should change the format?
If you use a business plan template, feel free to adapt to the particular circumstances of your business. Every business has its own characteristics and each author has his own style for every business plan will be different.
While the above titles are relevant to most companies, the focus varies depending on the purpose of the plan and the recipients.
If the plan is being written for internal use, they can concentrate on tasks such as marketing or operations and the use of attributes of the tasks, the deadlines set goals, and rewards, then used to help coordinate and supervise a program agreed between them.
If you are preparing a business plan to support an application for a loan, so the economic and commercial information, and in particular the analysis of cash flows, the critical parts of the document. Lenders are particularly concerned for the sale of security, all other loans, and to consider carefully the detailed financial projections.
If the plan is to display to potential investors, then you should be careful that you comply with the requirements of the Financial Promotions Order to do so may result in criminal penalties. As lenders, potential investors will review the proposal and financial projections business plan, but also seek to establish a company's potential value at the time of the proposed release.
What is a good business plan?
We hope that things will become clearer as the comment above, this depends in part on what is intended to be used, but no business plan should:
Concise - This is a short and concise;
Global - more likely a potential donor to provide funds if they are able to understand the product, market, funding needs, opportunities, all the skills of key personnel and financial projections, and if they can;
Ready - it should be written in clear plain English (and correctly spell checking and proof reading), but the message or statement must be clarified so that the public can understand what you expect of them, and all important what's in it for them;
We are clearly of his own and be able to answer questions about the financial market forecasts and assumptions, potential supporters.
The last point is crucial. Too often, when talking to potential donors business owners on the number in a plan that was presented, you get the answer: "Oh my accountant put the numbers together for me", which immediately raises questions about the realistic expectations.
After all, if you do not understand what the projected financial performance of your business is, how it should be funded by the belief that you can make it happen?
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