Friday, 18 November 2011

How To Write A Business Plan Fast And Relatively Painless

If you have never written a business plan before, the idea can be overwhelming.

It need not be the nightmare of your imagination.

Traditionally, a business plan is used to secure financing from a lender or a potential investment partner. It serves as something akin to resume business, which describes the purpose and scope of your business, identify goals, marketing and management, and establish a baseline budget.

Now, even if you do not want to search for additional funding, even if you plan to grow the business office of your home, you would do well to compile a business plan. Simply through the process has a value. It will help you develop a clear vision of what you intend to do business and how you intend to do so.

Here are some questions you should have already asked and answered before sitting down to write your business plan:

== What "want" does not fit your business and what product or service will be provided to fill that want?

== Who is your potential customer (this should be a well-established, niche market with die-hard buyers).

== Why people buy from you, as opposed to business in the street (in other words ... What is your Unique Selling Position)?

== How do you plan to reach your customers? A showcase? An ad in the phone book? Direct mail? A campaign on the Internet? Selling door to door? A combination of these?

== We need additional financing and, if so, how much you need and how do you protect?

Okay, so let's take a look at what you want in your business plan.

Most business plans are structured to examine four main areas:

1. Summary - a description of the company

Second How do you market the company

3. How busines finances be prepared and handled

4. How the busines will be managed

Let's look at these again.

Summary: What will the company, its unique selling position, business objectives, ownership structure and legal skills and knowledge and how they benefit the company.

Business Marketing: describe your product or service, identify your niche market, how big it is, and how to get there. Define your customers, identify your competition, the details of your pricing plan, explain how you will attract and convert customers.

Financial Affairs: We estimate the start-up costs, the project a monthly budget for the first year of operation, a pattern of ROI (return on investment) and cash flow for the first year the project of your income and expenses to the budget the first two years as you are going to compensate yourself, establish who keep records and how they are stored, and if you are in need of funding, how much you need and how should it be used in the field.

Corporate governance: how the company will be managed on a daily basis, that the procedures for recruitment and staff will be, how the products or services will evolve and how they will put in the hands of its customers. You will also need to account for the business equipment is needed and how insurance, leases, etc. will be processed.

That's it. In a few words.