By Vlad Ehrsam
A business plan is a clear course of action for small and large businesses. Without a clear plan, it is nearly impossible to win the favor of an investor. You can also forget about a bank loaning you money. Even though you’ve mapped out your business plan in your head, it still needs to be presented in black and white.
You do not want to make any decisions, set priorities, or train managers before having a plan in place. You are going to need more than a bunch of number to do this. Facts are what you need because every plan needs to strike a balance between the factual and the ideal.
You will need to gather as much information as possible about the products or services you intend to offer before drafting your business plan. You will want to consult with several sources of information to do this such as books, journals, magazine articles or just about anything that would have information you might be able to use.
Once you’ve collected the information you need, you’re ready to start writing your business plan. If you’re still confused; you can find business plan templates on the Internet that will walk you through the agonizing process without a panic attack.
After the information has been assembled, it is time to begin writing. If you don’t know where to begin, look on the Internet for business plan templates to help you on your way.
In order for your business plan to be accurate and within reason, you will need to collect a wide range of materials. The information provided in this article is a starting point. I believe this basic material will give you a good place to start without becoming overwhelmed.
You want your information to be accurate and relevant, so you will have to pool data from diverse sources. This article is a nice starting point, but you will need to probe much deeper.
Business Name: Note the kind of industry you plan to enter. Think of a catchy name and then research it to make sure it is not being used by someone else. Then, ask yourself if it tells potential customers the nature of your business. Plus, be sure to ask yourself what exactly is in a name anyway.
Cost of Product/Service: Think about the type of products and/or services you will be offering. Find competitors in the area, and review their pricing. Will your cost be higher or lower? What is unique about your product or service? Who are your customers?
Cost of Doing Business: You need to know how much money it is going to take for you to get started in order to understand what your business needs are. After noting what equipment your competition has, find a distributor that can give you an estimate as to how much it will cost you for the same equipment and supplies. Then, decide between what is essential and what can be bought later on down the road.
Business Location: They say that location is everything in business. Profits are definitely related to where your company is situated. If there are two auto repair shops on a street and you own one of them, the odds of you dominating the market and reaping huge profits are slim indeed. But, if you specialize in custom restorations while the other place is a low-end quickie paint shop, things definitely look better.
Management and Staff: Every investor wants to know how you plan to keep your employee cost down. During the first 3 to 5 years, the most critical time of your business, the less cost you have, the more business equity you can build. Think about who will be your key team players, and how much you plan to pay them for their services.
Making Sense Out of Your Notes
Your contribution to developing a business plan, time and research, is valuable to those who assist you near the end. Investors and banks want to know that “you know your stuff”. Coming into a business endeavor without any background in the industry or research is a huge mistake. Immediately investors and banks think you’re not serious.
First impressions are important! Your goal is to win over the investor or banker. Make them believe in your dream, and understand what makes your business unique. Showing up with a legal pad and notes will not be impressive.
All data should have a proper place within the organization of your notes and business plan. Check over the plan and ask yourself some potential questions that investors are likely to answer. Do you know the answer right away? Finally, just double check the plan for spelling or grammatical errors.
About the Author
Vlad Ehrsam runs a very interesting website at Full Info on Business, it’s one of the webs most up to date Business sites, why not sign up for the free Business newsletter.
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