Tips For Writing A Winning Business Plan
A business plan is essentially a blueprint for a business. It makes it easier for you and your partners to manage your company properly and to move from stage to stage in your strategy. The name of the enterprise, the address and the governing principles should be clearly written on the cover sheet. However, there are still other elements that must be included. The following are tips for writing a winning business plan.
The abstract is also called the executive summary of the business. This is simply a summary of the information that is provided in the plan and acts as an introduction to investors who are interested in the business. It should include the company background, the goals, a mission statement, the capital requirements, an overview of the management as well as the opportunities and competition. This should be written in persuasive language and should not be more than four pages.
Overview of the business
This is where you will provide further details and explain why the business was conceived. The business strategy, mission and model will be expanded in this section. As part of the explanation of the concept of your business, you should mention the associated costs of running the enterprise, the property that you own and the legal structures that are in place. Issues such as management, security and accounting may also be covered in this section.
This section is where you will describe your product or service in great detail. If you are selling a product, state clearly whether it is produced by your company or you are a retailer or distributor for another manufacturer. If you are the manufacturer, you should talk about the materials, inventory and the manufacturing process. If you are a service provider, this service has to be described in detail. You may also mention other offerings that are planned for the future.
In this section, you will provide the details of your strategies and how they will be implemented. Issues such as sales forecast, product launch dates and potential customer statistics should be highlighted. Investors will be particularly interested in your deadline and dates. Use a simple milestone format to make it easier to understand.
The details of your marketing plan should be provided in this section. Start with the market research that you have done then explain your sales process and customer relations. At this point, it should be clear that your business has a great chance of success. Your points should be validated with detailed market research as well as industry trends. If your business is too small to conduct this level of research, you can include some positive reviews from existing customers.
Your management team
Give a brief explanation of the background of the members of your management team and your executives. Investors will want to know the kind of people who will handle the affairs of the company. This is one of the factors that will be considered before they invest in your business. Investors will be happier if your management team has a lot of relevant experience.
Lastly, you have to break down the information provided in all the other sections into figures. Investors want to know the type of profit that is expected from your operations within specific periods of time. Your balance sheet, projected profit and loss as well as cash flow statement for about three years should be included.