Using sample business plans and their structure, along with
studying as many business plan examples as you can, will provide
you with the necessary framework to consider your business
from every possible angle.
Starting or running your business without a business plan
is akin to being a human without a skeleton!
Not only will using a sample structure highlight any areas
you haven't fully thought through, but it will also provide
you with a good idea of what makes a good business plan, and
what doesn't.
The importance of your business plan as a motivational factor
in running or starting your business cannot be underestimated.
You will find that your commitment continues to build as you
collect information, research and write each section.
Your business plan should always accompany requests for Small
Business Loans , and lenders or any kind of angel investor
will simply refuse to consider your business proposal without
one.
Lenders and investors want to see your plan with the aim of
satisfying key questions before they make their decision to
grant funding or not.
Once you’ve commenced trading your small business plan
will act as a steak in the ground, and help you measure where
you expected to be against where you actually are. It will
help you take corrective action as necessary.
Sample Business Plan Structure
All plans should include at least the elements listed below,
and perhaps additional sections depending on the type of industry.
Executive Summary
Company Background
Products or Service Overview
Unique Selling Proposition and competitive advantages
The Marketplace
Operations
Leadership and management profiles including professional
competencies
Professional Support
Risks and Threats assessment
Financial forecasts including key assumptions
Relevant appendices
Collecting the information for all the sections is time consuming
and sometimes difficult. The business section of your local
library is always a good place to start research. Ask your
friendly librarian about how to look up market research reports,
and how to investigate competitors.
If you are not familiar with spreadsheet software, constructing
the necessary financial forecasts represents a significant
hurdle. You have 2 choices:
Pay someone to put part or all of the plan together for you,
or a small investment in some business planning software.
The advantage of using a professional is you will receive
the benefits of their experience, combined with a professional
looking plan.
The disadvantage is that it won’t be easy to make changes,
and more importantly, because you will not have been as involved
in its preparation, you won’t be as familiar with its
contents as you should be. Make sure to learn the contents
well.
One final tip though, remember it’s the quality of the
information you put into it that determines what comes out.
Neil Best has over 15 years experience in business
finance. For successfully funded sample business plans, tips
and advice, visit http://www.smallbusinessfinancetips.com
