A decently crafted business plan is essential for any business. It must contain many important details regarding the nature of your business. For instance, the type of products and services you offer, financial system, and the broad objectives of the business.
Moreover, your business plan should be potent enough to outline the goals of your business and how are you going to achieve them all. It’s a must-to-have when reaching investors, banks, and partners. A well-written business plan will imminently spike the lender’s interest in your business.
Define Your Business
The first important while writing a business plan is to describe your business. Include information such as, your business’ registered name, vital people who are actively involved in the business and other information such as the exact address of the business. It should also define the system your business follows. For example, partnership or proprietorship.
Describe the Business’ Goals
This department of the business plan involves you enlisting the broad objectives and expectations you withhold from your business. If you’re direly in search of a loan or investor, this is the part you have to focus the most on. Fully explain why would you like to be lent funds and how you plan on making revenue with that money.
State The Nature Of Business
This part should be filled with everything you’re planning on providing. The type of goods and services you are willing to offer. It should cover all points such as the type of product/service, target audience, pricing mechanism and sales and distribution strategy.
USP (Unique Selling Point)
Any individual, company or bank willing to lend you funds will want to know what is that your business has over the competitors. Or how are you planning on maintaining customer loyalty?
To be able to fulfill the requirements of this section, you must lay out market research and gain enough information to successfully define your USP. It should be able to explain how different you are from the competitors and how can you capture more of the market.
If you’re an existing business, you’ll want to provide an income statement accompanied by all the profit and loss scenarios. Perhaps, a balance sheet – an insight that enlists your debts and assets. A cash-flow statement is also advisory.
Financial Stability Prediction
Probably the most decisive factor in your business is the financial projection. If you’re in the hunt for a loan or additional funds from investors, you must carry out this section with deep observation and analysis. This part carries all information regarding how will your business be able to repay the loan. Provide profit and expense estimates for at least a two-year succession.