Posts Tagged ‘Effective Business Plan’

Elements of an Effective Business Plan

Saturday, January 26th, 2013

When you’re starting a new business, an effective business plan is crucial to your success. Not only does it help you determine your vision for the company, give you insight into its position in the market, and outline the financial details of everything, it also gives you a roadmap of sorts, one that will help guide you and your new business to success. A great business plan is also a convenient selling tool, and it could help you gain investors or potential business partners.

 

So what do you need to put an effective business plan together? Follow our handy guide below.

 

The Executive Summary

One of the most important parts of an effective business plan is the executive summary. This comes at the very beginning and gives the reader insight into the overall content of your plan. In it, you should explain the gist of what your company does, its goals, its vision, and its current marketplace.

 

This is your chance to really sell your business to someone, so be sure to point out all the best and most eye-catching information here. You want the person who reads your executive summary to want to continue on to learn more about your company, so be sure you pique their interest. Tell them what your company can accomplish and what kind of returns and profits they can expect by joining you on the journey.

 

The Details

After you’ve written a great executive summary, you’ll need to give your reader all the nitty gritty details of your new company. You should include:

  • A full business description, including your company name, legal status, structure, mission statement, and more. You should also include information on the products and services you will provide, and outline the overall goals and visions you have for the company.
  • A market analysis. Here, you should detail your target customer; outline their demographics, their needs, their wants, and their buying trends. Also, speak to your company’s place in the current marketplace and address any competitors you may have.
  • Marketing strategies. A great marketing strategy is hugely important to an effective business plan. You could have the most unique product or service out there, but if you can’t market those services and convert them into sales, it doesn’t matter. Take this time to outline your marketing plan: where will you sell your products? How will you get the word out?
  • Operational details. This is where you’ll delve into how your products and services are actually delivered. Where will the business be located? Where will products be manufactured? How will you store inventory? You should outline all the facilities, equipment, and staffing needs you’ll have, as well as how your products will be shipped, delivered, and packaged.
  • Your team members. A really effective business plan doesn’t just sell a reader on the company; it sells them on the people who will be running it. This is where you can seek to accomplish that. Detail the unique experience and expertise you and your management team have. Explain why your employees are equipped to make this company a success, and what qualifies them to perform their respective roles.

 

The Financials

This is, quite possibly, the most looked at part of a business plan. In this section, you’ll need to provide all the financial details that an investor would be interested in: your overhead costs, your current investments and capital, and your labor and production costs. You should also speak to the expected profits, and include a project for what sort of return you expect in one year, three years, and five years. Outline your cash flow projections, and be sure to include information on how all these numbers were determined.

 

Do you need help creating an effective business plan? Call the Connell Curtis Group today at 210-414-9724.

How to Create an Effective Business Plan

Tuesday, December 11th, 2012

When starting a new company, an effective business plan is integral to success. The right business plan not only provides a great roadmap to follow as you launch your new venture, but it also allows you to entice and impress potential investors and partners.

 

A truly effective business plan should address these items:

  • The market
  • Product development and production
  • The management team
  • Marketing strategies
  • Sales venues
  • Financial details

 

Need a little help creating your plan? Follow these simple steps.

 

  1. Sum it up. You need to create a killer business summary that can really wow investors and get them excited about your company. A good summary should include a description of your business, your products, and your industry. When done reading it, an investor should have a good idea of what your vision for the new company is.
  2. Do market research. Market research is incredibly important to creating an effective business plan. Analyze your industry and its marketplace to determine demand for your product, get an idea of who your customers are, and identify any possible competitors you may face. You should also use the SWOT analysis method to determine any strengths, weaknesses, opportunities, and threats that your company may have.
  3. Outline development and production. You’ll need to outline the specific details of how your products will be developed and manufactured. How much labor will be required? Where will production take place? How will distribution work? Basically, you need map out the exact process your business will go through to produce its services and products.
  4. Define sales methods. Once you’ve covered how development and production will happen, you need to define your sales methods. Where will your services be offered? Do you have potential sales venues already lined up? Will sales online be a possibility?  Paint a clear picture of where and how customers will be able to purchase your products.
  5. Break down the financials. This is really what an investor is looking at when considering putting money into your new business. How much profit will this company make? How much will products be sold for? In the long run, what type of numbers can be expected? Outline all the nitty gritty financial details, so investors can get a clear picture of what funds are needed now, and what type of return can be expected in the future. If possible, use graphs and charts to really illustrate your data.
  6. Profile your team. A potential investor won’t put money into your company unless they’re confident in the people running the show. Put together detailed biographies of your management team that detail each person’s qualifications, education, resume, and anything else that may make them a trustworthy potential business partner.
  7. Detail marketing strategies. Creating a great product is one thing, but getting it to sell is another. A truly effective business plan should also include projected marketing strategies that will entice customers to buy products and take part in the new business. What sort of advertising will be used? Will there be any promotions that may encourage buying? Identify those and spur confidence in your investors that, not only can you launch a ground-breaking product, but you can sell it, too.
  8. Offer measurable projections. Finally, once you’ve outlined all details of your business, you need to make some projections as to your company’s performance. Outline what your expected sales numbers will be in one year, five years, and 10 years, and project the possible annual growth of the company. By including these in your business plan, you’re giving yourself goals to work toward, as well as showing investors that you are forward-thinking and looking ahead to the future.

 

Need helping creating an effective business plan for your company? Contact the Connell Curtis Group today.