If you’re considering opening a new business, one of the first things you’re going to need to do is have a business plan. Having a well laid out business plan can make the difference between obtaining the capital you need and having to reassess your whole business strategy. If you’ve never written a business plan before, you may not know where to start. However, putting together a well thought out business plan doesn’t have to be difficult if you know where to start. Here are some helpful tips to get you started with writing your business plan.
Talk About Your Company
You should be prepared to talk about your company in detail. What product or service does your company offer? Who are your target customers? What are your plans for long term growth? These are just a few of the things you need to think of and spell out right in the beginning of your business plan. This helps paint a picture of what your business does so that lenders will be more likely to extend you credit.
Your business plan should have thorough research on your industry and competitors. Along with the market analysis, you should include what your business does or offers that helps you stand out among the competition. What does your business do that your competitors do not? What is better about your business? On the flip side, what could be improved on that a loan or credit could help with? Be thorough and honest.
Structure of Management and Products
Provide a thorough, detailed overview of your management structure in your business plan to let funders know that you have a good structure in place. This helps eliminate organizational risk and lets them see you have multiple people handling jobs rather than one handling everything. You should also give a detailed description of your product or service offering and how you plan to market to potential customers within a set amount of time– usually five years.
A good business plan has all your financials laid out. This includes your balance sheets, expenditures and potential revenue. Along with that, you should include your funding request, which should be as specific as possible. How will you use this money to fund your business? Will it help spur growth? What are your repayment plans? You should put a lot of thought into these items to help paint a better picture to potential funders of what you’re looking for so they can meet your request.
With the right business plan, your business can get the funding it needs to be a success.