Creating a Business Plan

creating-a-business-plan

When creating a business plan you need to consider your specific situation. For example, description of the management team is very important for investors while financial history is most important for banks. However, if you’re developing a plan for internal use only, you may not need to include all the background details that you already know. Make your plan match its purpose.

What is most important in a plan?

It depends on the case, but usually it’s the cash flow analysis and specific implementation details. .

• Cash flow is both vital to a company and hard to follow. Cash is usually misunderstood as profits, and they are different. Profits don’t guarantee cash in the bank. Lots of profitable companies go under because of cash flow problems. It just isn’t intuitive. .

• Implementation details are what make things happen. Your brilliant strategies and beautifully formatted planning documents are just theory unless you assign responsibilities, with dates and budgets, follow up with those responsible, and track results. Creating a business plan is really about creating a track you can follow that results in you improving your company.

Creating a Business Plan Format.

If you have the main components, the order doesn’t matter that much, but here’s the outline order we suggest:

1. Contents.: Make it easy to see at a glance what the plan has to offer.

2. Executive Summary: An executive summery is the plan in a nut shell. Even through its only a few pages it’s the most important part it a statement that keeps you on track, it is also your point to win over financial backers. A well written summery captures the interest and attention of the reader. .

3. Opportunity: When writing a business plan you need to describe what the opportunity is. The point is to get the reader to see and appreciate the opportunity. So use this section to highlight light the economics behind the opportunity and the factors that will drive its success. Remember to keep it brief, focused, and upbeat..

4. Company Description: Legal establishment, history, start-up plans, etc. Another important part of creating a business plan is to describe the company and get across its unique selling points. Don’t forget to include your goals and business strategy; investors will want to know how you plan to grow.

5. Product or Service: Describe what you’re selling. Focus on customer benefits.

6. Market Analysis: You need to know your market, customer needs, where they are, how to reach them, etc.

7. Strategy and Implementation: Be specific. Include management responsibilities with dates and budget.

8. Management Team: Include backgrounds of key members of the team, personnel strategy, and details.

9. Financial Plan: Include profit and loss, cash flow, balance sheet, break-even analysis, assumptions, business ratios, etc.

learn more about creating a business plan format