Why do you need a business plan?
A business plan is a written guide to start and manage your business successfully. This is also what will present the lenders and investors if you are looking for funds. Many people can avoid developing a business plan because they don’t know where to start or because they think the process consumes too much time.
Do not worry, the SBDC is here to help you already all your small businesses. Here is a breakdown of a business plan in five simple parts. We are going to immerse ourselves in each part and its components!
Executive summary
The executive summary of your business plan must summarize what you plan to do and how you plan to do it. Often, the executive summary is the only part of a business plan that will read a possible investor or lender before deciding whether to continue reading the rest of your plan. Therefore, be careful to avoid jargon or highly technical language. Your executive summary must be clear and concise, communicating your business idea and enthusiasm for your idea.
Business description
The description of the business serves as its introduction. In this section, provide an overview of your business, focusing on “who, what, when, where and why”. Some of these points should include: the name, location and type of business, products or services, a mission statement and a description of its target market. The mission statement is a brief explanation of its commercial purpose or the reason why it exists. We recommend keeping yours short, clear and easy to remember. An target market is that group consumers or organizations are more likely to buy their products or services.
OPERATION AND PRODUCTION PLAN
The operating plan is designed to describe how the business works on a day -to -day basis. This includes the descriptions of the products and/or services that your company is producing, how will monitor and manage your inventory, where you will do business, the surrounding area of your business and why the location is effective and civil liability insurance. .
Marketing analysis and plan
Its marketing plan describes both the wide range of its business industry and specific marketing activities to reach its target market. Its objective in this section is to describe how it will attract and retain customers. It will also describe how a sale will happen. There is not a single way of addressing a marketing strategy. Your strategy must evolve and change to meet your unique needs. This may include providing a history investigation into the industry for your business or product, your target market and your market share.
Financial Plan
The financial section of a business plan is one of the most important components of the plan. This section helps you learn how to manage your business successfully. If you plan to start a business, it is essential to determine a budget to start. Each business is different: some can start with a smaller budget, while others may require a large initial investment. Anyway, all companies, whether they start or growing, must supply financial projections or what expects your company to do within the next three to five years. Most lenders require a three -year projection. This research is beneficial because the investigated numbers help predict difficulties and growth opportunities!
If you are interested in learning more about the development of a business plan, visit our website or see our recording at the request of “From the idea to action: development of your business plan”, visit this link to register: https://pasbdc.ecenterdirect.com/events/30487
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