In the previous session, we answered the critical question, “Do I Need a Business Plan?” If you haven’t read it, you would be best served to do so now. That way, you will have the clear-cut answer to that crucial question once and for all. In this session, we are going to answer the question, “What is a Business Plan?”
One of the PRIME reason businesses fail is because they failed or refused to plan. I realize that’s somewhat cliché, but it is the undeniable indisputable truth.
Please don’t join the ever-increasing list of bankrupt companies that provided phenomenal products or services but didn’t cut the mustard due to a lack of strategy.
What Is a Business Plan?
Succinctly put, it is a roadmap on how a company is being built.
It illustrates in detail the company’s objectives and how the leadership is going to accomplish those objectives. This written roadmap covers marketing, financials, and operations.
What Are the Elements of a Business Plan?
There are no hard or soft rules, but a typical plan includes these primary elements:
- Executive Summary
- Market Analysis
- Program Description
- Operational Structure
- Marketing Plan
- Financial Plan
- Appendix
Other elements may include:
- Market Strategies
- Organizational Structure
- Market Share Projections
- Positioning Strategy
- Pricing Strategy
- Design and Development Plan
- Development Budget
- Scheduling and Costs
- Distribution Strategy
- Sales Potential
- Competitive Analysis
- SWOT Analysis
- Procedures
- Personnel Strategy
- Risk Assessing
- Operations & Management
- Personnel Number Calculations
- Calculate Overhead Expenses
- Develop a Capital Requirements Table
- Create a Cost of Goods Table
- Income Statement
- Cash Flow Statement
- Balance Sheet
Each Business plan will vary based on the business, the industry, the objective of the founder(s), and their funding objectives.
That stated, your Business Plan is not only your blueprint and road map; it is your sales pitch, and infomercial. It is the tool you use to woo Private Investors, Angel Investors, Institutional Investors, Crowd Funders, Banks, Financiers, Venture Capitalists, and Equity Partners.
A carefully crafted Business Plan empowers you to raise funds quickly and easily. If you are having issues attracting funding, chances are this is your problem!
We asked and answered the question, “What is a business plan?” In the next session, we will examine how your Business Plan positions you into extraordinary profitability.
