A salient reason to draft a business plan is creating a road-map for a business owner or an entrepreneur. A plan is also a cherished tool for communicating your business idea to others, for securing finances or attracting investors.
Whatever be your reasons, a business plan will be stronger if it abides the following basic guidelines:
1) Get ahead of the questions your customers and competitors may have and answer them in your business plan. They will want to know about you, your business, your industry and how you’d be different. They will need to know that how do you understand your customer and your conduct in making sales and serving customers.
2) Estimate the sales a little less than you think they will be. It is always smart to keep your intentions on the conservative side, showing sustainability with as less sales as possible.
3) Evaluate the expenses a bit higher than you believe they would be. The fierce truth is that the expenses or the eventualities buffers are often necessary and get spent once the business is in play.
4) Remove presumptions from your sales projections by assembling items such as letter of intent, signed contracts, or some other form of written confirmations that makes the customers to buy your products or services.
5) Provide a comprehensive set of precise and realistic financial forecasts, and ensure that you know them adequately to discuss them intelligently with bankers and investors. Prove your understanding of the in and out flow of money in your business, and express your knowledge with sales projections, cash flow forecasts, pro forma income statements and balance sheets.
6) Be economical. In your business plan, show your readers that you make wise buying decisions and that you are sourcing the best products. If you can get along with a little older truck, don’t ask for investing in for a shiny new one.
7) Be convincing and realistic all through your business plan. Nothing challenges your credibility faster than inaccuracies. Wherever it makes sense to do so, mark the source of the information.
8) Communicate the various ways of knowing your business, counting with the understanding of your customers, having a practical approach to pricing, and deliberating how to make the operation work competently.
9) Your business plan should be able to communicate your knowledge of the industry you will be operating in. What types of goods you will be selling, who all are your competitors, what competitive advantage will motivate the customers to buy from you and the like.
10) Somewhere in your plan it is also good to talk about your qualifications, and sharing information about any business-related assets such as your work experience or educational background.
A business plan can intensify or diminish your confidence in your business idea. As your confidence increases, you move towards the launch of the business; if it decreases, you will have to work more.
These are just the basic ideas that can help you in strengthening your business plan; there is a huge river to row ahead.
At Medvisors, our practice aims are to provide proactive and friendly approaches in offering support and guidance to all our clients. This is what makes us the best team of Business Planners in Melbourne. Our team is well versed with the issues affecting individuals and businesses and our broad experience makes us ideally placed to help you make right decisions.
Have a plan to discuss further? Get in touch with us today!