To assist with your company’s business planning, create a detailed plan that includes a description of your business and its goals. You will need this when you approach possible lenders, investors, and partners. Here are the essential aspects of a business plan.
Lead with an Executive Summary
In your business plan, an executive summary is a general introduction to the details that will follow. Write a mission statement, an overview of the goods and services your company provides, and a synopsis of your plans for growth.
Include a Company Description
The description of your business should include its official name, its location, and a succinct evaluation of the skills and expertise of key team members. It should also state your company’s structure and delineate its history and current status.
Explain What You Offer
Describe the goods and services you presently offer and intend to offer in the future. Be sure to include details about pricing, target consumers, supply chain, and strategies for sales and distribution.
State Your Plan for Marketing
An important aspect of your business planning is how you intend to market and sell your goods and services. Share not only your plans on marketing to potential customers, but also how you intend to keep current customers loyal.
Research the Competition
Include an analysis of your competitors in your business plan. Point out their strengths and weaknesses and how your company stands out in its field.
Share Your Goals
In this section, clarify your current and future goals and why you need funding to accomplish them. Include an explanation of any specific opportunities and how these opportunities will help to grow your company.
Analyze Your Company’s Financial Status
To assist in an analysis of the current financial status of your business, include relevant documents such as a statement of cash flow, a balance sheet, and profit-and-loss statements. You should also add statistics on your company’s current ratio, invoice turnover ratio, and net profit margin.
Make Projections of Upcoming Finances
Use financial statements for three years to make estimates of future profits. Your projections can be optimistic, but be sure to keep them realistic as well.
Add Relevant Documentation
A final section of your business plan should be an appendix that includes additional important documents. These may be leases, licenses, permits, and anything else you think is relevant.
For more advice on business planning, contact Scarlan Capital Group.