What information must always be incorporated in any business plan?
10 things your business plan must have:
1) Alignment of Mission, Goals, and Actions. (which I feel is THE most important step)
Once you have set the big picture by clearly identifying a mission for your company, you must then align your goals and actions to achieve that mission.
-Is your plan clear about the connection between these elements?
If not, it may signal that you are not heading in the direction in which you really want to go.
2) Point to Major Opportunities. To demonstrate how your company will expand and prosper, your business plan must clearly point out major opportunities that will drive growth (i.e. unique products/services, new technologies, gaps in market, distribution advantages, etc.) and outline the actions you intend to take to capitalize upon these opportunities.
3) Show You’re Prepared For Threats. Your business plan should point out possible threats that loom on the horizon (i.e. a market slowdown, new regulations, increasing competition, etc.) and offer ways to prepare for them or even turn them into a real business opportunity.
4) Define Your Customers. Customers should be divided into market segments. This is important, since each segment will act differently and put unique demands upon your organization. You need to identify for each segment – Who is buying? What are they buying? Why are they buying? Your plan should also explain how your company intends to serve each type of customer better than anyone else.
5) Plan for Tracking Competitors. Your business plan should cover what you know about your competitors today and, more importantly, how you intend to keep track of them on an ongoing basis. Moreover, your plan should address how you intend to use what you learn to choose competitive battles you can win.
6) Understanding of Strengths and Weakness. Your business plan should list your company’s capabilities and resources – from management skills to research expertise to operational advantages to marketing savvy to distribution strength to your loyal customers. But the plan should also go on to describe where you are weak and need improvement. Every company has weaknesses. Investors know that, so don’t ignore it in your business plan.
7) Describe A Strategy That Makes Sense. Your company must have a realistic strategy that’s logical and rational about what can be accomplished and how long it’s going to take. At the end of the day, a good strategy executed well will win the ballgame.
8) Provide Numbers You Can Stand Behind. Your financial statements are your company’s report card, so to speak. They should paint an honest picture of your business. Your business plan should include a realistic financial portrait, based on assumptions that you believe in and numbers that you trust. Be prepared to back these assumptions up with facts and verifiable sources.
9) Have a Backup Plan. Your plan should acknowledge that you don’t have a crystal ball, so present some alternative or backup options for the plans you’ve made. Ask and answer the question, “What if…?”
10) Be Sure Your Plan is Clear, Concise, and Current. Your plan is a living document, so make sure it communicates clearly, is concise and to the point, and is in a form that is easy to update as things change.
Use this brief overview to help you quickly focus your energy on improving elements of your plan that will enhance your chances of raising capital.
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