Let a professional write your business plan
There is quite a bit of work and thinking that goes into a business. You got up one morning and you decided you wanted to start your own business and all of a sudden you start missing your exit off the freeway, you find yourself taking thirty minute showers, and you can’t remember what you had for breakfast. Yup, that’s when you know your neck deep in thinking about how you are going to grow your business. Putting all those thoughts on paper is the best way to not only document the planning of your business but to keep you focused. As an entrepreneur, you want to tackle every opportunity that comes your way. Your mind wonders into new verticals and how they can grow your business. With a well written business plan, you can stay focused on the original goal.
There are multiple ways to write a business plan. It really all depends what kind of business you are starting. A potential investor or lender is going to want to see different information if you are going to start a coffee shop then if you are going to start an online e-commerce website. There is a basic frame work however that all business plan writers stick to. Before you need to know what is in a business plan, you first need to understand why a business plan is important and whom it’s important to.
A business plan is important and needed for a few different reasons. We have already spoken about one of them. A well written business plan will keep a die hard entrepreneur focused. With all the opportunity out there hitting the playing field every day, a business plan will detail each move your business needs to make looking forward. You have spent much time analyzing and thinking about this plan and it needs to be the path you follow.
If at a certain point in your business you are going to be seeking investment capital, an angel or VC investor will most definitely take a look at your business plan to make sure you are on the right track. If you have just throne a business plan together, an investor will most likely turn the other way.
At a certain point in your businesses life cycle, you are going to need a loan for your business. Instead of some one investing in your business and giving away portions of your company, you are now borrowing money with the promise to pay it back with interest over time. Just like an investor, a lender is going to want to see your business plan to find out just how you are going to be using the funds. On the debt financing side, if you are looking for government guaranteed SBA loans, you cannot be approved without an SBA formatted business plan.
Before you put a single bit of ink on paper, you first need to sit down with yourself and truly think about your life plan. Ask yourself why you are starting a business, what are the reasons? Are you in it because of a passion or because of the money? Where do you see yourself in 5 years, 10 years down the road. Make sure you have thought through everything before you start writing a business plan.
No matter what industry you are in, a potential lender or investor is going to want to see a few things when it comes to your business plan.
Executive Summary- This is the first few pages of your business plan and pretty much sums up your business as a whole. It’s a thirty thousand foot few of your company and what you are planning to do. This will give the reader a brief snapshot of what they are getting themselves into.
Marketing Plan- A lender or investor is going to want to know how you plan on marketing your business to drive revenue. Are you going to have a website, send out post cards, email a database, or maybe create a radio add? Explain each marketing strategy in full. From costs, to creation of adds, to accounts you are going to use to make it happen.
Current and Fore-casted Financials- If you have already generated a bit of revenue, make sure you have bank statements, profit and loss statements, cash flow statements, balance sheets, etc. If you are just starting your business, you need to have fore-casted your revenue. You need to plan based on your marketing efforts and costs the kind of revenue you plan to generate, and over what time frame. Best practices is to forecast out three years.
Resumes of Management Team- The people you have in your business are one of the biggest points any lender or investor is going to look at. It takes good employees to grow a business, not mention a good leader. If you are working with a good designer or web developer, or a young entrepreneur that you have hired to do social media, be sure to add this human capital to your business plan.
Intellectual Property or Secret Sauce- If you are an inventor or a chef that might have a few secrets, be sure to take note of them in your business plan. Lenders and especially investors love intellectual property that no ones else has. It’s called residual business or royalties. If an investor can get a piece of a royalty or residual business, they will be very happy.
Exit Strategy- How do you plan on getting out of your business if you need to. This needs to be explained both on the positive and negative side. Do you have a plan to sell the business, grow the business, take the business public, merge it with another company, etc? If your particular industry goes down or we have another recession, how do you plan on cutting costs, moving assets, etc?
Supporting Documents – These documents are your titles of incorporation, the contract for if you lease property or equipment, purchase orders, etc.
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