Financial chart image via Shutterstock As a new business owner, one of the first steps you will take in launching your new business is creating a business plan. This not only will it set your business up for future success, but if you are looking for funding, having a solid business plan helps investors and lenders see your vision as clearly as you do. Jennifer Spaziano, vice president of business development at Accion emphasizes the importance of the financial portion of your plan. In addition to the tips below, you can find business plan templates on a number of websites where you can fill in your business information and download your complete plan.
Location Means of doing business Internet, storefront operation, mail order Operations Plan. Offer an explanation describing how the business will function, including the physical setup and responsibilities for specific tasks.
Include an overview of the market as a whole, with specific data and charts or graphs, if appropriate. Define your target market and your plans for catering to this specific audience.
Describe the products manufactured or sold or the services offered. Classify the different types of products or services and provide a brief description of each.
Outline pricing and sales information. Include rationalizations for why your audience will buy your products or services and how you will reach them through marketing and advertising efforts.
Demonstrate how you will gain a competitive edge against your competition. Provide pertinent, concise background information on all key players involved in the business. Include all financial information, from startup costs to balance sheets.
The financial section should outline: The amount necessary to start or maintain the business The amount needed over the next two, three, and even five years Plans to use funds Anticipated need for additional funding Ongoing business expenses, including salaries, insurance costs, promotional expenses, etc.
Provide projected income statements and balance sheets for at least two or three years.The executive summary, marketing plan, key management bios, and financial plan business plan sections are critical and should be included in all business plans.
Sketch or outline what you will include in each business plan section, and then get the data and facts that support it. It's at the end of your business plan, but the financial plan section is the section that determines whether or not your business idea is viable, and is a key component in determining whether or not your plan is going to be able to attract any investment in your business idea..
Basically, the financial plan section consists of three financial statements, the income statement, the cash flow.
The financial section of a business plan could be regarded as the lifeline of the business. It is what breathes an air of life and practicality into the business. The financial section many times appears at the back of the plan, but this does not downplay its importance.
The SBA connects entrepreneurs with lenders and funding to help them plan, start and grow their business. We support America's small businesses. The SBA connects entrepreneurs with lenders and funding to help them plan, start and grow their business.
In their book Write Your Business Plan, the staff of Entrepreneur Media, Inc. offer an in-depth understanding of what’s essential to any business plan, what’s appropriate for your venture, and.
The executive summary, marketing plan, key management bios, and financial plan business plan sections are critical and should be included in all business plans.
Sketch or outline what you will include in each business plan section, and then get the data and facts that support it.