In every kind of business, a business plan is very essential as it is the road map to your success and not only is it used for attracting investors but to keep track on how your idea will be implemented, risks involved and the business’ long-term viability. Contrary to popular belief, a business plan does not have to be complicated and long, it is a short straight to the point document which is approximately 15 pages long and should take up to 5-7 minutes to read. A winning business plan will not only include the view point of the entrepreneur but also the view point of investors and consumers.
In a nutshell, these are the steps that should be followed when putting together a business plan:
· Step 1: Determine the characteristics of the venture and it’s industry.
· Step 2: Determine the financial structure of the venture.
· Step 3: Determine the liquidity, networth, debt/equity. The latest balane sheet of the business should be included.
· Step 4: Determine the quality of the people who work in the venture.
· Step 5: Determine what is unique about the venture (very important).
A business plan should have the following:
- Cover page
- Executive summary
- Business overview - business profile and the product or service
- Management - the entrepreneurs and the management structure
- The Market - industry analysis and market analysis
- Sales and Marketing strategy
- Financial statements and projections
- Legal and regulatory environment
- SWOT analysis and risk/reward assessment
- Appendices and supporting documentation
