Selling Ideas to an investor - Writing a Business Plan

A business plan is a document that an entrepreneur's thoughts and experiences together - to its current business situation and the prospects for potential investors, customers, suppliers and employees - in a formal scheme.

Why write a business plan?

A business plan serves as a communication tool for a company and its potential investors. It is a platform for an entrepreneur to his ideas for business expansion potential investors, and it also serves as a visual guide toTo help understand better the entrepreneur, where he is, where he will be there and how he receives plans.

BUSINESS PLAN FORMAT

There is no fixed format, it is only those recommended. Business plans require different formats for different objectives concisely to communicate different end-reader. In today's issue, to sell an idea to investors, we would have a format that can be used most effectively communicated (a) the current status of the company amid a major industry and market, (b)the product, marketing and sales strategies, and (c) a realistic income. Below is a recommended format.

1st SUMMARY

Although every business plan begins with an Executive Summary, it is to be written to last. It is a conclusion that the core recorded the whole plan. It should (a) the reader that the investment seeker has a good understanding of its business, (b) the main points to convey, as this to convince the only section that someinvestors to read, and (c) succinctly highlight the company's current and planned products, markets, financial performance, recent trends in the industry, management team, financial forecasts and plans, how to pay back the investors. It is an overview with the following main components.

- Vision and Mission Statements
- Company overview
- Product Strategy
- Market analysis
- Marketing Plan
- Financing Plan

2nd Vision and Mission

Visionis nothing without a map, otherwise it would be a dream. The Vision Statement sells an achievable end state, and the model shows investors how. In a combined business plan, the vision and mission statements in a single statement.

The vision shows where you lead the business. It is one or two digits, the business will look like and how great it is with a realistic long-term TEM projection over a period of usually five years. The mission describesthe strategy to take the steps and pass the company's philosophy for the vision. A mission statement should answer the questions below.

- How would the business begin to grow to survive, and reap profits during the growth phase?
- What are the business strengths and weaknesses and competitive advantages?
- What are the business is the sense of community and public image?
- What is the entrepreneurial attitude to management, investors, strategic alliances(Affiliated companies) and staff?

Definitions

Objective: Specific Plan to achieve a goal
Objective: The performance target
to take the Mission: steps to achieve a vision
Vision: The ultimate realistic view of the economy

3rd COMPANY Overview

The company overview is probably the easiest to write in any business plan. It consists of the official business name, legal form of businesses (sole proprietorships, partnerships, corporations, etc.), its location, its facilities,their property, the management team (including the Board of Directors, if any) and staffing (including specific plans and personnel staff increase projection). The depth and length of the individual components (one point per component) would be on the applicability of that content, the potential investors.

4th Product Strategy

This section shows the current range of products, research and development of current and future products and the production and deliveryMethods. The special features of the current product needs to be emphasized because many other companies have good products, good products but has become not only churn opportunities for business. Investors would look for a product developer to attract, for examples, the factors that would keep the product on the market more than others, and the unique technology that would only be the entrepreneurs and the investors own. Below are the highlights.

- CompetitiveComparison (product life cycle, the uniqueness of the product, production, delivery methods, research and development, etc.)
- Sales Literature (company and product profiles, advertising and promotional materials, sales kits, etc)
- Product Fulfillment (how the company intends to handle or handles after-sales services needs to maintain customer loyalty)

5th MARKET ANALYSIS

The market defines the market, profiles, analysis of customers, competitors and judgesmarket risks. Below are some of the issues to think through

- Which market the product is the competition? For example, an anti-aging sheep placenta extract, measured with other anti-aging health supplements should be in the market instead of the health supplement market in general.
- Who are the customers? meant, for example, up-market products for the high income group an office environment, a professional image for the implementation of the business would be required.
- Whoare the competitors? For example, would know how to create the aggressiveness and extent of the activities of the closest competitor awareness of the magnitude of the effort and capital to be injected into the business to be competitive.
- What are the basic rules? For example, for the sheep placenta extracts in anti-aging food supplement market to compete, they must let their potential customers know, anti-aging effects in order to compete in that market.

6th MARKETINGPLAN

A marketing plan is a combination of a set of procedures to make their products known to potential customers. These cases concern the sale, distribution, advertising, promotion and public relations. Below are the main points.

- Communicate marketing strategy, the combination of procedures, and why the entrepreneur thinks that this is a good mix.
- To create sales strategy, who the customers are determined, the sales targets and forecasting, pricing strategy, advertising,Sales of strategic alliances, etc.
- Distribution method, examples of direct or indirect distribution, exclusive distribution, network marketing (including multi-lateral-Marketing), selective distribution system, etc.
- Advertising and Promotion (commonly referred to as "A & P announced")
- Public Relations, for example, approval of the local authorities, community projects, sponsorship, participation in the Internship Program Polytechnic etc.

7th FINANCIAL PLAN

The financing plansensitive topics discussed money, which are expected to top concern of most investors. These issues include the company the current financial state, the size of the investment, such investment would be used if it were the break-even point, as if ROI (Return on Investment) must be positive and investors' exit option. The usual components

- The current financial reports (start-up table, balance sheets, profit and loss account for the previous years tonow)
- A summary of how and when would the additional capital will be supplied.
- Based on a sales forecast to pass, as would break even and positive ROI? Use projected profit and loss statements and projected balance sheet.
- What are the investors' pull-out options?

Production and presentation of business plan

Now that the business plan had been designed, the final task is to do, to present and produce the hard work. While ensuring the production, that the draft is proofread setand edited before printing and binding. The plan should include a covering letter and a content page. Presentation is a must. There must be a well-established face-to-face presentation with the written plan or presentation slides.

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