What are the Benefits of Writing a Business Plan?

By Lanee’ Blunt

Advantages of a business plan--
Image by ljleavell.

Having a well prepared and written business plan is key to your business success. When you begin writing the plan, make sure that you have defined your business purpose, conduct market and competitive analysis, and developed your business strategy. A business plan should describe the major aspects of your business, such as products or services, staffing, facilities, and marketing.

Identify Problems

One benefit of writing a business plan is that it will help you identify your problems by helping you look at your idea tangibly and if it is feasible or not to forge ahead with the idea.  It determines if your product or service is marketable and if it will be profitable.

Road Map

Another advantage of writing a business plan is that it provides an estimate of what your start-up cost will be.  You can use it as a guide for operations, management and measure actual financial performance.

Funding

Convinces lenders or investors to fund your business, it gives funding requirements and any future funding requirements over the next five years.  You can outline your funding requirements how you intend to use the funds you receive. Business plans are good summaries of operations and lenders and investors request them as a tool when you are seeking funding for your business venture.

Reference:

SBA: Funding Request

Dummies.com: Benefits of Writing a Business Plan; Steven D Peterson, Peter Jaret, Barbara Findlay Schenck

Wiki Answer: Benefits of Having a Business Plan; Crystal

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Business Plan Example for a New Business

By Lanee’ Blunt

What information should you include
in your plan--Mihow

Having a business plan in place when you are starting a new company is very important. A business plan can be used to seek funding and also can be used for a plan-as-you-go for running your new business. You should spend some time doing your homework for example, gathering the information that you will need to create your plan.

Executive Summary

Tell the reader what you want in the summary. You will provide a synopsis of your business plan. The elements here will include the business concept, financial feature, financial requirements, current business position, and major achievements. This section is a snapshot of your plan but touches on your goals and company profile.

Market Analysis

This section you will write about your market, how you will reach them. What are the needs of your customers and how you will position your business to service them? Write about the industry grown and estimate the market share for the period the plan covers.

Company Description

What do you do in your business? What makes you different from the competition? What are your start-up plans?

Product or Service

Describe your business. Describe what you are selling.

Strategy and Implementation

What are the responsibilities of management include dates and budgets. Describe your business and its organization structure, regardless of its size.

Funding Request

If you are seeking funding for your new business find out all of the information that you need to include in your plan.

Financial Projections

Provide financial projections that will back up your request.  Include a projected Profit and Loss and Cash Flow tables.

Reference:

SBA: Essential Elements of a Good Business Plan

Entrepreneur: Elements of a Business Plan

Bplans: A Standard Business Plan Outline; Tim Berry

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How to Write a Café Business Plan

By Lanee’ Blunt

A café is a business that can get big, depending on what you are planning on serving. Start with a business plan because it may help you ask for funding; persuade potential investors to support the business financially. Start the business proposal with a market study that profiles your customer base, current sales in the market area, and pricing features of competitors.

Write an executive summary which is a brief summary of what the café is and where it will be located. Tell the reader why your café is a great business for example, if it is going to serve all organic foods. What are the services that you are going to provide?

Write the management summary. Write your mission statement. Write about the management team. Who is going to be the general manager?  What experience and education does he or she have? Who is going to be the chef and the experience that he or she has?

The finance section of the business plan should include your cash flow statements, of each year you have been in business—up to three to five years, company income statements, balance sheets and other financial ratios, such as a break-even analysis. Or a cost estimate that explains the estimated cost of the building, equipment needed, cost of installation of equipment, vehicles needed for transportation. You may require help from your accountant or a good spreadsheet software program.

Eliminate all errors by proofreading the business plan. Rewrite sections that are too vague and don’t explain the full meaning of what you are planning.  Avoid typos that will make your business plan look unprofessional and amateurs.  If you don’t have the skills to write your business plan there are online resources that can assist in formulating a business plan or there is Business Plan software that you can purchase that will help you.

Reference:

Inc: How to Write a Bakery Business Plan

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What Content is Included in the Finance Section of a Business Plan

By Lanee’ Blunt

Include your Financial Section--
lustfish

A financial section should always be included with your business plan. A business plan is a written description of your business and what you plan to do and how you are going to do it.  They are used by entrepreneurs that are seeking financing, firms that are trying to hire key personnel, firms trying to get investors.

The finance section of the business plan should include your cash flow statements, of each year you have been in business—up to three to five years, company income statements, balance sheets and other financial ratios, such as a break-even analysis. You may require help from your accountant or a good spreadsheet software program.

Reference:

Entrepreneur:  An Introduction to Business Plans

SBA: Writing a Business Plan: Financials

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