Question

The Simple Way to Write a Business Plan?

Answer 1

A business plan is an important aspect of any entrepreneurial venture. It serves two main purposes: first, it acts as a roadmap for the owner/managers, and second, it should demonstrate to potential investors why your business is worth getting involved in. A business plan helps an entrepreneur look at his/her ideas objectively, which is crucial to understanding the actual potential for success of any venture.A well-written business plan should include several parts:Executive Summary- a short, enthusiastic description of your businessBusiness Description & Vision- includes the mission statement, company vision, goals and objectives, and company principlesDefinition of the Market- this part should identify the target market and describe your company's position in that marketDescription of Products & Services- what product are you selling, or what service are you providing?Organization & Management Ð describe how your company will be organized, along with the legal structure (LLC, etc.) and who will manage the business. Include descriptions of any licenses/permits you will need (or already have)Marketing & Sales Strategy- what is the demand for your product/service? How will it be distributed? What media channels do you intend to use to advertise?Financial Management- for new businesses, this section would include estimated start-up costs and projected income and cash flow; for established companies, include actual financial statements for the past 3-5 yearsThe business plan of any company should be detailed but concise. It may be helpful to have a longer, in-depth plan for personal reference along with a shorter one covering major points to show potential investors. Your plan should include an exit strategy- how you intend to minimize losses and dissolve the company if it fails.A good business plan will not be finished in the first draft. It will be specific, with concrete goals and objectives, logically organization, and enthusiasm for the enterprise. It should serve as a map for conducting business, but it need not be set in stone. Being flexible and moving with the cycles of business is advisable over rigidly adhering to one set of ideas and solutions. Although it is impossible to predict every problem that will arise, it should provide tangible solutions for those you can foresees.