Business Plan Proposal Guide For Entrepreneurs

A business plan serves many purposes. It acts as a guide when making critical decisions or creating business milestones; it helps entrepreneurs identify problems, avoid crucial mistakes, and iron out kinks in the business; and it to act as a document that communicates a business’s objectives to secure financing, and a guide for outsiders like suppliers and service providers. Although creating a business plan might seem intimidating, it can be done quite easily and quickly when you go about it one step at a time. You can also hire a fractional cfo to handle all the details of your business plan. Here is a look at the critical components of a traditional business plan.

Executive summary

Although a summary, this is a critical part of your business plan and so it must be concise and clear. It should spark your reader’s interest and make investors eager to read more and pursue a relationship with you.

The components of your executive summary are as follows:

·         A one-sentence business overview

·         A brief description (preferably a few sentences) of the market and the problems your business will solve.

·         A justification for viability and a brief description of your solutions.

·         Your target market and ideal customers.

·         An overview of your competitors.

·         Your company and team overview.

·         A summary of your finances including planned sales and expenses, as well as profitability.

·         Information regarding any funding requirements.

·         Growth potential, the progress you have made, and the milestones you intend to cover.

Company description and overview

Writing an overview of your company is a bit tricky at this stage, given that you are still in the nascent stages of developing your company. Add:

·         Your business’s purpose, vision, and mission.

·         How the company was formed.

·         Who the founders are.

·         Geographical location of your company.

·         Experts on your team.

·         Current status of your business.

·         Your company’s strengths and your business’s achievements so far.

Products and services

Here you will provide a detailed description of the products and/or services your business will offer and their current pricing. Include diagrams and screenshots when possible.

·         Avoid technical descriptions and industry-specific buzzwords.

·         Describe how your products/services will differ from your competitors.

·         Talk about the advantages and benefits to customers and the product lifecycle.

·         If you have applied for patents, trademarks, or copyrights, add information about them in this section.

·         If you are introducing a brand new product concept or service, ensure you explain the product/service in detail – its uses, value, and how it will work. That will help readers better evaluate your business.

·         Include any ongoing research on your product/service. Past test results must be explained in detail.

Marketing and sales plan

The marketing plan section holds all the critical information that your potential financiers and investors will be interested in. The section is also relevant to your team as it provides information on when and how things will be done. Ensure you have a thorough understand of the market before you attempt writing this section. In this section, you can include information regarding your:

·         Target market research.

·         Brand and product positioning.

·         Pricing strategy.

·         Competitors’ positioning and competitive advantage.

·         Customer personas and profiles.

·         Marketing channels you intend to use.

·         Marketing budget.

·         Estimates of cost per action (CPA).

Operations

This section offers you the opportunity to talk about your business functions. Depending on the type of business you will provide, include the relevant information:

·         The organisational structure of your business.

·         Facilities, supplies, equipment, and space required.

·         Technology required.

·         Staffing needs.

·         Supply chain management.

·         Logistics and distribution plans.

·         Order and fulfilment processes.

·         Quality control checks.

·         Legal requirements – licenses, regulations, and insurance (click here for more information on business insurance).

·         Accounting requirements.

Management and organization

Your potential investors and financers are interested in knowing who is behind your company. Here you will review the structure of your company and introduce the key team members as well as an overview of your business. Include information regarding:

·         Founders and the executive team.

·         Owners and shareholders.

·         Board of directors.

·         Consultants and advisors.

·         Key team members and the heads of departments.

When providing a company overview, do include information regarding your mission statement, the company’s legal structure and ownership, business location, and a brief history of your company (if it is an existing company).

Financial plan

Your financial plan section must include a monthly sales and revenue forecast for the first year, and annual projections for the next three years. Include your current balance sheet, cash flow projections, and income and expenses.

If you are looking for funding, this is where you will include information regarding startup and capital requirements, and loan and funding requests.

Appendix

The final part of your business plan is the appendix which will contain copies of insurances, licenses, trademark/patent registrations, contracts, appraisals, articles of incorporation, and the resumes of the founders and major team members.

Conclusion

Every successful business once started as a business plan. It is a valuable and critical part of launching a new business. A business plan must be thorough. By following the steps covered here, you will cover most of the ground required to attract investors, partners, funders, suppliers, etc., and convince them that your business idea is a good one.

References:

WSI. 2018. 5 Reasons Why a Business Plan Is Important for Entrepreneurs. [ONLINE] Available at: https://www.wsifranchise.com/blog/5-reasons-why-a-business-plan-is-important-for-entrepreneurs. [Accessed 22 January 2021].

Forbes. 2018. Business Plan Template: A Step-by-Step Guide For Entrepreneurs. [ONLINE] Available at: https://www.forbes.com/sites/alejandrocremades/2018/12/10/business-plan-template-a-step-by-step-guide-for-entrepreneurs/?sh=2126c656120e. [Accessed 22 January 2021].

Inc.. 2021. How to Write the Perfect Business Plan: A Comprehensive Guide. [ONLINE] Available at: https://www.inc.com/jeff-haden/how-to-write-perfect-business-plan-a-comprehensive-guide.html. [Accessed 22 January 2021].

SBA. 2021. Write your business plan. [ONLINE] Available at: https://www.sba.gov/business-guide/plan-your-business/write-your-business-plan. [Accessed 22 January 2021].

Bplans. 2021. How to Write a Business Plan in 2021. [ONLINE] Available at: https://articles.bplans.com/how-to-write-a-business-plan/#Executive-Summary. [Accessed 22 January 2021].