The Business Plan – Your Key to Financing Success

0

Having a business plan allows you to outline or create some clear business goals. And no matter how big your business or what industry you’re in to be successful every business needs a successful business plan. But what exactly makes for a successful business plan here are a few suggestions. 

It’s about understanding and having others know what your business is about. 

Therefore a successful business plan allows you to have a sense upfront of what your business is all about, how you’re going to make money, and how you’re going to manage your operations and grow for the future. This is key and the first fundamental steps to understanding and having others know what your business is about. 

Included in your business plan should be your marketing plan  

This is important too. Now that you know who you want to reach, make a plan for how to reach them. So to be able to spread the word about your business and connect with potential customers a there are many different marketing strategies and tactics you can use. Ranging from search engine marketing and targeted Facebook ads to traditional methods like direct mail and brochures. Look at examples of what other businesses in your industry do to reach customers, and emulate those methods. 

The Financial Plan  

It involves the development of the company’s revenue and profitability model. It includes detailed explanations of the key assumptions used in building the model, sensitivity analysis on key revenue and cost variables, and description of comparable valuations for existing companies with similar business models. 

In addition, the financial plan assesses the amount of capital the firm needs, the proposed use of these funds, and the expected future earnings. It includes Projected Income Statements, Balance Sheets and Cash Flow Statements, broken out quarterly for the first two years, and annually for years 1-5.  

Importantly, all of the assumptions and projections in the financial plan must flow from and be supported by the descriptions and explanations offered in the other sections of the plan. The Financial Plan is where the entrepreneur communicates how he/she plans to monetise the overall vision for the new venture.

Share.

Leave A Reply

20 + 6 =