Whether you’re starting a business, growing your company or seeking additional funds, a business plan is the tool to reach your goals. This essential document outlines the current state and future goals of your business to help not only you but also potential investors understand your business more thoroughly.
It’s crucial to have a well-written plan. You’ll want to spend sufficient time analyzing your business before writing. Think through the following points to gain a solid understanding of what you’ll need:
1) Business Concept. – A good business plan defines what your business concept offers. Not only does this help shape your goals, but it also helps investors and bankers understand why your business concept is worthwhile.
2) Market Synopsis. – Before laying out your business plan, it’s crucial to define and understand your target market. Think through these questions:
- Why do customers need your solution?
- How is your solution better than existing solutions?
- Who are your target clients?
- What are the opportunities for your product/service?
3) Business Model. – The business model is one of the crucial pillars of a business plan. Your business model should include your company’s structure, revenue sources, customer base, the products/services you offer and financing details. Be sure to also address your unique selling proposition and describe the potentials for investment.
4) Competition Summary. – Your business plan should prove that you’ve taken the competition seriously. Consider these three questions:
- Who are your current or future competitors?
- How do you plan to beat your competition?
- How is your solution better than your competitors’?
5) Financial Statements. – A strong business plan includes a realistic summary of current and projected financials for your business, including costs and sales predictions. You’ll also want to address the expected time frame for breaking even so investors can understand how many sales you’ll need before you cover your costs.
Moving in the Right Direction
When you’ve developed a realist, credible business plan, you’re ready to present to advisors, partners, lenders or investors. If you’re ready to “get in the door” with small business financing, give one of our relationship managers a call at Countybank. Give us a call at 864-335-2400.