it, your business plan is very important, even at the early start-up stage, and even if you can keep it in your head. Before you purchase business stationery, telephones, or rent a location, you should do a business plan. p align="center">
1. What's in a business plan? A business plan should prove that your business will generate enough revenue to cover your expenses and make a satisfactory return for bankers or investors:
. Executive Summary - features the highlights of your plan and sells your idea in two pages or less;
2. Company Summary - a factual description of your company, ownership, and history;
. Products (or Services or both) - describes your products and/or services and how they stand out from competitive products and services;
. Market Analysis - provides a summary of your typical customers, competitive landscape, market size, and expected market growth;
. Strategy and Implementation - describes how you will sell your product, how you will put your plan into action, and establishes milestones;
. Management Summary - provides background on the management team, their experiences, and key accomplishments;
. Financial Plan - contains key financials including sales, cash flow, and profits.
1.1 What makes a successful business plan?
- a well thought out idea;
- clear and concise writing;
a clear and logical structure;
illustrates management's ability to make the business a success;
shows profitability.
Only one out of 20 business plans are read by prospective investors beyond the executive summary and only 6 out of 1000 business plans get funded in average. The quality of the business plan is crucial for winning attention of investors, especially for a first-time entrepreneur who has no track record in managing own business. It is not only important for a business plan to have the right content, but it also must be organized into logical and clearly defined sections and presented in a way that is informative and maintains readers interest.business plan should:
-provide a roadmap <# "justify"> In writing your plan, you should keep it as short as possible while ensuring that you cover all the important topics in sufficient detail to substantiate your proposal. Investors only give you one chance. Address every key aspect of your pl...
