Ever thought of starting your own business?
When starting a business, you have to show that you are serious,
and that you have thought your ideas through. This will help
clear your thoughts and convince others of your intentions!
So, here is a quick nine-step guide to what you will need in
your company's
business startup plan:
An executive summary that states goals and objectives. The
executive summary introduces your business strategy and probably
is the most important section for lending institutions. You need
to convince the bank in the first two or three pages that you've
got a viable business proposal, or you're going to leave
empty-handed. This summary is also useful as a communication
tool for employees and potential customers who need to
understand -- and get behind -- your ideas.
A brief account of how the company began. Clearly explain the
origins behind the company's and how you or your business
associate came up with the initial idea.
Your company's goals. Explain in a few paragraphs your short-
and long-term goals for the company. How fast do you think it
will grow? Who will be your primary customers?
Brief career resumes of the management team. This section should
include the names and backgrounds of lead members of the
management team and their respective responsibilities.
The service or product you plan to offer. A key aspect of this
section will be a discussion of how your product or service
differs from everything else on the market.
The market potential for your service or product. Remember that
you've got to convince lenders, employees and others that the
market you're after is relatively large and growing. You'll need
to do some research for this section. Research your market
thoroughly, using web resources etc. Example, use local
government records to identify size of potential local market
A marketing strategy. You need to tell the world that you have
arrived! Will you rely exclusively on word of mouth (not a good
plan unless you've already got a reputation)? Will you advertise
in print, television or on the Web (or all three)? How about
marketing via the web?
A medium to long financial plan. Include a summary of your
financial forecasts, with spreadsheets showing the formula you
used to reach your projections. You'll need balance sheets,
income statements and cash-flow projections for the entire
forecast period. This section is also where you would tell
prospective lenders how much money you'd like to borrow to cover
your startup costs. The assumptions that you make in this
section will make or break your company's success. If you're
unsure about using this kind of financial modeling, find a
professional. It's worth the money.
An exit strategy. All good business plans include a section that
lays out the benchmarks you'll use in deciding to call it quits.
The strategy could be based on a revenue figure.
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