Effective Business Plan – The Surest Way To Make Your Business Succeed.
There is no one right way to prepare a business plan. An effective business plan tells a great story and draws the reader in. The investor will then want to learn more, which leads to a meeting that significantly increases your chances and reduces the possibility that your plan will not be evaluated.
In the success of any business, planning is a vital ingredient. For building one’s business now-a-days, developing a business plan is not just a requirement, but a basic necessity. Starting from large corporations to entrepreneurs, it is an honest truth that every business needs a plan. The business plan helps one map out strategies, raise additional capital either for expansion or to boost operations, measure performance, monitor progress and develop work guidelines. Several business owners, who want to franchise their businesses, also are planning to work around a franchise business plan.
In a business, there are certain things investors look out for. Every investor will want to know a business owner’s passion, his dedication to his business and his managerial skills. Apart from this, he will also look out for one’s management team. Every investor will always like to see his business associate’s cash-flow, break-even analysis and return of investment. Therefore, a well prepared business plan is the key to attracting investors. If you are a franchisor, your franchisee will see the same in your franchise business plan and evaluate if this franchise has got enough substance for them to invest in it.
Writing a business plan must be managed just as most other important business projects are managed.It requires advance preparation, delegation, refinement, and discipline. The process ofpreparing a business plan involves identifying likely users, gathering accurate and convincing
Information and carefully outlining the plan before writing. The key sections of the businessplan are as follows:
Executive Summary: This is the most concise form of the business plan, covering all thekey points. Outside parties typically review the executive summary first to determine, if your company is a potential candidate before deciding to read further. As the most important part of your business plan, these sections should be prepared last.
Company Description: This first full section of the business plan covers the company’s mission, history, current status, strategies, and plans for the future.
Management and Organization: Many potential investors consider the management team to be the most important predictor of a successful business. This section should describe members of the management team and their back grounds as well as needs for additional key people. Key outside advisors and consultants should also be discussed.
The Market and Competitors: This section must define the company’s market, the industry, current and potential buyers, and competitors. The plan should explain the key factors for the market in terms of how buying decisions are made, how the market is segmented, what kind of market position you plan, and what sort of defensive strategy you envision to fend off competitors.
The Product or Service: In this section, the features, components, and quality of the product(s) or service(s) are described in detail. Issues that must be addressed are the amount of research and development remaining to be completed, how the product or service will be produced and at what cost, and how the crucial activities of quality control and after-sales service will be performed. Key regulatory considerations should also be addressed.
Marketing and Sales: The business plan must describe the company’s selling methods (such as direct sales or mail order), how sales staff is trained, and how support is provided. Because of the substantial expense associated with business development, the plan should consider and present the most cost-effective options. Your marketing plan should discuss the results of market research and the value proposition of your product or service. Effective marketing, often through advertising and public relations, must also be described.
Financial Information: The most important elements of this section are the financial forecasts, balance sheets, and the statements of cash flow and income. They must be consistent with the discussion of the company’s past performance trends and the data presented in other sections of the plan. For plans used to solicit financial backing, this section should also include a funding request that states how much money is needed, why it is needed, and how it will be used. Finally, you need to consider the likely payback for the investors and their need for an exit strategy.
Once all of these sections have been formulated, the plan is ready for final rewriting and presentation. Extensive editing is highly recommended, along with careful attention to presentation details. The plan should be tailored to the preferences and concerns of its readers, including insiders using the plan to guide the company. Given the dynamic markets within which growing businesses operate today, periodic revisions of the business plan will be necessary in order to maximize its utility as a tool for management and investors. A Franchise Business Plan is similar in nature, but covers several other sections which would be relevant for franchisees and covers franchise manuals and standard operating procedures as well.
So many businesses fail due to inadequate planning and the rate at which they fail is overwhelming. In small businesses, the rate of failure is highly significant and it is the main reason why a good business plan is needed. Developing a plan extremely important for raising additional cash and to provide potential investors, franchisees and lenders with the information required to make investment decisions. Due to higher competition in attracting funding for any business, one’s business plan has to stand out and the projection has to be firm.
Just like a road map, a good business plan shows one the route to avoid pitfalls and reach your destination smoothly. Working with a good plan will prevent one from entering unfamiliar territory. For you and your organization, the plan becomes a working map. It spells out the things to do and things not to do, the functions and how everyone within every department should operate. It helps one become more efficient, reduce waste and redundancy, channeling one’s resources to rightful place and being a guide to the successful running of your business.
About Author:-
Sparkleminds consists of individuals with unmatched expertise in preparing franchise business plan, and outsource franchise sales. Their business plan aims at converting any kind of traditional business into a franchise business model. This particular article illustrates these aspects further.
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