Your business plan is a road map for your startup. If you haven’t spent serious time planning out your business future, it’s a good idea to spend time on this essential document for your business. Learn why it’s essential to have a proper plan in place for your business and find out how to write a detailed, practical plan for your business today.
While a plan for your business is instrumental in guiding your actions, it’s also important for financing applications. Few banks and other financial institutions are willing to offer you a long-term loan without a detailed plan. A plan gives your business the legitimacy it needs in its early years. Basically, it shows your lenders that you’ve performed the necessary research and have the skills to make your business succeed.
Every good business plan starts with the company and industry analyses. An analysis describes what your company offers, any competition you have and how you expect your company to handle it in the market. It should clearly and honestly reflect any challenges that your business may face and how you hope to overcome them.
Another key area is a description of your management team. Few small businesses survive with you as the only employee. Bring on a team of talented individuals who are committed to your business and understand your industry. If your business isn’t to the stage of hiring employees, plan the specific roles you need to fill in the future and what criteria you’ll use to bring on these individuals.
A practical next step is to create an operations plan for your business. This plan looks at all the basic steps of growing your business, including milestones you hope to accomplish. From general five-year plan information to practical steps in the first few months, this portion of your plan will help guide you through the hectic first years of small-business ownership.
Finally, perhaps the most important part of your business plan is a financial plan. This portion includes any relevant financial history and detailed financial projects. Your goal is to communicate to your lender and prospective partners that you’ve run the numbers and are confident that your business will be financially stable. These projects may change over time, but the goal is to be as descriptive and accurate as possible. Spend some time reviewing your plan, updating it and ensuring it contains all the relevant information you need to receive competitive funding and communicate your plans for your business.
